16:22 29-01-2026

Tesla's strategic pivot to AI and robotics with Cybercab launch

Tesla announces a $2 billion investment in Elon Musk's xAI and confirms the Cybercab robotaxi launch this year, shifting focus to AI and robotics amid revenue decline.

Tesla has announced a new phase of development, investing $2 billion in Elon Musk's xAI while confirming the launch of the Cybercab robotaxi for this year. For a brand experiencing its first annual revenue decline after years of rapid growth, this strategic pivot aims to position Tesla not just as an electric vehicle maker but as a player in the artificial intelligence industry. Investors are watching closely to see if the company can deliver on its promises after years of delays with its autonomous service.

How Tesla is restructuring its business around AI

The decision to invest in xAI reflects Musk's plan to build an ecosystem where software, autonomy, and robotics become the foundation of future revenue. The Cybercab, Optimus, electric semi-truck, and new Roadster require massive production investments: capital expenditures in 2026 will exceed $20 billion, more than double last year's level.

The vehicle lineup is being streamlined—Tesla will discontinue the Model S and Model X to free up capacity for robotics. Meanwhile, the company is trying to prove it's ready to deploy fully autonomous vehicles in at least part of the U.S. by year-end, despite annual delays.

Financial results and market pressure

A three percent revenue decline and a sixty-one percent drop in net profit show how painfully Tesla has navigated the demand slowdown and increased competition. However, automotive margin rose to 17.9 percent, a rare positive in the report. The energy segment, including industrial storage and grid solutions, was the quarter's best performer with record results.

Vehicle sales are growing slower than the market expects, while discounts and cheaper model versions are eroding profitability. Against the backdrop of expiring U.S. subsidies and Musk's controversial political activity, the company is seeking new growth avenues.