Tesla invests $2B in xAI, confirms Cybercab launch
Tesla has announced a $2 billion investment in Elon Musk’s artificial intelligence company xAI, reinforcing its ambition to transform from an electric vehicle manufacturer into an AI and autonomous driving powerhouse. The company also confirmed that production of its long-awaited Cybercab robotaxi remains on track to begin this year.
The investment in xAI is expected to support Tesla’s self-driving technology development and broader AI integration across its products. The move aligns with Musk’s strategy to position Tesla at the center of the rapidly expanding artificial intelligence sector — a shift viewed by investors as key to sustaining the company’s high market valuation, News.Az reports, citing Reuters.
Tesla executives emphasized that Cybercab production is progressing as planned, a reassurance welcomed by investors after previous missed rollout targets. The purpose-built robotaxi, designed without a steering wheel or pedals, is central to Tesla’s future autonomous transport business.
However, scaling Cybercab production, humanoid robots, Semi trucks, and next-generation vehicles will require heavy factory investment. Tesla’s chief financial officer said capital expenditures will exceed $20 billion this year — more than double last year’s spending — reflecting the company’s aggressive expansion strategy.
Tesla’s traditional EV business remains under pressure from increasing competition and price reductions across the industry. The company also announced it will discontinue Model S and Model X production to free factory space for robot manufacturing.
Despite challenges in vehicle sales, Tesla’s energy generation and storage division emerged as a bright spot, recording a quarterly revenue high of $3.84 billion, driven by global demand for grid-scale battery systems supporting renewable power networks.
Investors continue to closely watch Tesla’s progress in autonomy, AI integration, and robotaxi deployment, viewing these developments as critical indicators of the company’s next growth phase.
Tesla shares rose following the announcement, reflecting renewed confidence in Musk’s vision to steer the company into an AI-driven future.
By Aysel Mammadzada
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