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2d ago

Tesla Pivots to AI With $2 Billion xAI Investment, S/X Wind-Down and Cybercab Targeted for April

The shift raises regulatory and credibility risks around Tesla's driverless rollout.

Tesla Cybertrucks lined up in July at Gigafactory Texas in Austin. Sales fell nearly 50% in 2025 from a year earlier — and nearly 70% in the fourth quarter.
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Illustration by Tag Hartman-Simkins / Futurism. Source: Jay Janner / Austin American-Statesman via Getty Images
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Overview

  • Tesla confirmed a $2 billion investment in Elon Musk’s xAI and said 2026 capital spending will exceed $20 billion to fund AI infrastructure, Cybercab and Optimus.
  • Production of the Model S and Model X will be discontinued next quarter as Fremont factory lines are converted to build Optimus humanoid robots with long‑term high‑volume ambitions.
  • Cybercab robotaxi production is planned to start this year, with Musk citing April, as Tesla positions itself as an autonomy‑ and robotics‑first company.
  • The company disclosed about 1.1 million active Full Self‑Driving subscriptions and is transitioning the software to subscription‑only pricing.
  • Tesla says it has begun limited driverless rides in Austin, but California regulators say it lacks permits for driverless passenger service in the state, and independent reporting disputes Musk’s claims of a 500‑plus paid robotaxi fleet and rapid monthly doubling.