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flag Tesla invests $2B in xAI, shifts focus to AI and robotics as EV sales decline.

flag Tesla increased its stake in xAI with a $2 billion investment, signaling a strategic shift toward AI and robotics amid challenges in its core EV business. flag Despite strong Q4 earnings and revenue above expectations, Tesla faced declining sales and revenue, with BYD surpassing it as the world’s top EV seller. flag The company plans to discontinue Model S and Model X production, focusing instead on humanoid robots and AI-driven innovations like robotaxis. flag While Elon Musk’s vision fuels investor interest, concerns persist over execution risks, high valuation, and the long-term viability of its robotics ambitions, especially given technical hurdles and intense global competition.

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