Tesla is ramping up its investment plans to more than $25 billion, intensifying investor debate over whether its ambitious bets on artificial intelligence, robotaxis, and humanoid robotics can deliver future returns.

The final chapter of Tesla’s flagship vehicles appears imminent, as only a few hundred Model S and Model X cars remain unsold.

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.

Tesla shares plummeted nearly 9% on Friday, erasing about $60 billion (£45 billion) from the company's market value, following the much-anticipated unveiling of its robotaxi, which failed to impress investors.

Tesla CEO Elon Musk showcased a two-door robotaxi with gull-wing doors and no steering wheel or pedals at a much-hyped event on October 10, sticking to long-held promises of autonomous cars driving long-term growth at the electric vehicle maker.