Tesla plans to scrap two models and invest $2 billionn in Elon Musk’s xAI, as the electric vehicle pioneer accelerates a charge into robotics and artificial intelligence following its first drop in annual revenue. Tesla plans to scrap two models and invest $2 billion (€1.67 billion) in Elon Musk’s xAI, as the electric vehicle pioneer accelerates a charge into robotics and artificial intelligence following its first drop in annual revenue. Fourth-quarter revenues fell 3 per cent to $24.9 billion, Tesla said after US markets closed on Wednesday. Tesla has pressed ahead with a $2 billion investment in Mr Musk’s xAI as part of its January funding round, despite lukewarm shareholder support for the move. The move to link Tesla more closely to Mr Musk’s AI group came after a nonbinding shareholder resolution in November pushed for such an investment.

Source: The Irish Times January 29, 2026 19:00 UTC