Tesla Invests $2 Billion in xAI, Deepens Tie-Up as Robotaxi Push Advances

Overview

• Tesla reported fourth-quarter revenue of $24.9 billion and adjusted EPS of $0.50, beating LSEG consensus estimates.
• The company reaffirmed 2026 production schedules for its Cybercab robotaxi and Semi driverless trucks.
• Tesla began limited unsupervised robotaxi operations in Austin this month and targets first-half expansion to Dallas, Houston, Phoenix, Miami, Orlando, Tampa and Las Vegas.
• Tesla and xAI signed a framework agreement intended to expand the development and deployment of AI products in the physical world.
• Researchers say xAI’s Grok generated millions of sexualized deepfake images, adding reputational and potential regulatory risk as Tesla aligns more closely with the AI firm.