Elon Musk says Tesla ending Models S and X production, converting Fremont factory lines to make Optimus robots
Musk has framed AI technology as central to his broader push to develop artificial intelligence that could support the automaker's self-driving and robotics ambitions.
In its earnings report on Wednesday, Tesla said it invested $2 billion in xAI, Elon Musk's artificial intelligence startup. "Tesla's investment was made on market terms consistent with those previously agreed to by other investors in the financing round," the company said.
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Tesla Inc (NASDAQ:TSLA) shares added 3% afterhours on Thursday after the electric-vehicle maker reported fourth-quarter 2025 earnings that topped Wall Street expectations, despite year-over-year declines in sales and profit. Tesla reported non-GAAP earnings per share of $0.50 for the quarter ended December 31, beating analyst estimates of $0.45.
Tesla's revenue fell 3% in the fourth quarter as the company lost its lead as the world's leading electric vehicle maker to China's BYD.
Tesla's profit fell 46% in 2025 compared to the prior year, as CEO Elon Musk assumed a role in the Trump administration and federal electric vehicle subsidies were killed off by Congress, causing sales to plummet.
The electric vehicle maker's shares are near record highs as Wall Street focuses on the company's plans for robots and self-driving cars.
Tesla beat Wall Street estimates for fourth-quarter revenue on Wednesday despite the Elon Musk-led automaker delivering fewer-than-expected vehicles in the holiday quarter.
Tesla is set to report its latest financial results after the market closes today, with traders anticipating a sizable move from the electric vehicle maker's stock following the results.
J.B. Straubel's Redwood Materials has secured some high-profile backers as AI makes energy storage more critical.
Tesla earnings are looming, and Wall Street's outlook is mixed as vehicle sales remain in a rut and the company's AI plans continue to take shape. Analysts said ahead of the Wednesday report that they see challenges ahead for Elon Musk's carmaker, including uncertain EV demand and unclear timelines for some of its major AI projects.