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Tesla said on Wednesday it will invest $2 billion in CEO Elon Musk's artificial-intelligence company xAI - and that production plans for its Cybercab robotaxi were on track for this year, Reuters reports.
The news supported Musk's plan to pivot Tesla from an electric vehicle maker to an AI company, which is key to the company's roughly $1.5 trillion valuation.
But Musk's plan to build Cybercabs as well as humanoid robots, along with Semi trucks and Roadster sports cars, will mean a series of factory investments that will take capital expenditures above $20 billion this year, Chief Financial Officer Vaibhav Taneja said. That is more than twice the $8.5 billion in 2025.Shares rose about 3.5% in after-hours trading, but pared gains following the capex details to trade up 1.8%.