Tesla Discontinues Model S/X, Invests $2 Billion in AI

Tesla has announced it is discontinuing production of the Model S and Model X, while simultaneously investing $2 billion in Elon Musk's artificial intelligence company, xAI.

The production space for these models at the Fremont, California factory will be used for the construction of Optimus robots. Tesla signed an agreement to participate in xAI's Series E funding round on January 16.

Tesla's revenue fell by 3% in the fourth quarter, with the company losing its leading position in the electric vehicle market to China's BYD.

Musk also confirmed that Tesla plans to begin production of the Cybercab, a fully autonomous two-seater vehicle, in April.

Tesla shareholders approved a new compensation package for Elon Musk, which could reach up to $1 trillion if certain goals are met.