Tesla Is Investing $2 Billion in xAI. Is That Bad News or Good News for TSLA Stock?

Tesla (TSLA) is making an artificial intelligence (AI) pivot that is deepening with a controversial bet on CEO Elon Musk's own company, xAI. The firm recently disclosed a $2 billion investment in the AI startup as part of a $20 billion funding round. This moves comes despite shareholders rejecting the proposal a few months before in November 2025 and board chair Robyn Denholm opposing the deal. Announced in Tesla's fourth-quarter 2025 earnings release, the investment will deepen the firm's AI strategy un ...