3 weeks ago
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Tesla CEO Elon Musk kicked off the new year by springing several eye-popping surprises on shareholders, including a $2 billion Tesla investment in one of his own companies (the artificial intelligence firm xAI), and the abrupt elimination of two of the company’s car models, the Model S and the Model X.
The moves, remarkable even in the context of Musk’s unfettered management style, underscore the profound transformation underway at the car maker as it loses ground in the EV market to Chinese rivals. In place of the discontinued car models, Musk said that Tesla will use the freed up factory space to build Optimus robots, a still largely experimental line of humanoid robots that Musk says will eventually perform everything from household chores to surgery.
Tesla executives emphasized that the investment in xAI would build efficiencies for Tesla, as it wouldn’t have to expend similar resources on AI, and Musk said it would ultimately help Tesla manage the enormous fleets of autonomous vehicles and Optimus robots.
“We’re just doing what shareholders asked us to do, pretty much,” Musk said Wednesday evening on the call, noting that “a lot” of investors had asked for the investment in xAI.
Shares of Tesla were up about 1.8% in after-hours trading on Wednesday following the results.
Revenue was down ...
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