Tesla Shares Rise After Hours As EV Giant Commits To Vehicle Autonomy, AI With Cybercab And $2B xAI Investment

• Tesla said that 2025 was a “critical year” for the company as it transitioned from an EV company to physical AI.
• Tesla said that its dedicated robotaxi offering with no steering wheel or pedals is on schedule to start production in 2026, as is the company’s Tesla Semi truck.
• The company also said that it has entered into a deal to invest about $2 billion to acquire shares of CEO Elon Musk’s AI startup xAI as part of its recent funding round.

Shares of EV giant Tesla Inc (TSLA) on Wednesday rose over 3% after hours after the company reiterated commitment to artificial intelligence and robotics on the heels of a fourth quarter report that beat Wall Street expectations.

The company reported fourth quarter earnings per share of $0.50, below the $0.73 recorded in the corresponding quarter of 2024, but exceeding Wall Street expectations.

Analysts on average were expecting the company to report adjusted earnings of $0.44, according to company-compiled earnings consensus estimates of sell-side analysts.

Revenue for the three months through the end of December came in at $24.9 billion, above a Wall Street expectation of $24.5 billion.

Tesla Commits To Autonomous Driving

Tesla said that 2025 was a “critical year” for the company as it transitioned from an EV company to physical AI.

“In 2026, we will further invest in the infrastructure needed to support clean energy and transport and autonomous robots, including the ramp of six new production lines across vehicle, robots, energy storage and battery manufacturing,” it said.

Tesla said that its dedicated robotaxi offering with no steering wheel or pedals, called Cybercab, is on schedule to start production in 2026, as is the company’s Tesla Semi truck. The company also added that it is installing first generation production lines for the Optimus humanoid robot in anticipation of volume production, slated for 2026-end. The company said that it will unveil the next-generation of Optimus in Q1 2026, which will be its first design meant for mass production.

“While we continue to execute on innovations to reduce the cost of manufacturing and operations, over time, we expect our hardware related profits to be accompanied by an acceleration of AI, software and fleet-based profits,” the company said.

Investment Into xAI

Separately, the company also said that it has entered into a deal to invest about $2 billion to acquire shares of CEO Elon Musk’s AI startup xAI as part of its recent funding round. The agreement between the two companies provides a framework for evaluating potential AI collaboration between the companies, it said, without detailing areas for potential collaboration.

xAI is developing digital AI products such as its large language model Grok which is already available on certain Tesla vehicles.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around TSLA stock stayed within the fell from 'bullish' to 'neutral' territory over the past 24 hours, while message volume rose from ‘normal’ to ‘high’ levels.

A Stocktwits user said that the stock will tank tomorrow at market open on Thursday in light of the year-over-year earnings drop.

Another, however, highlighted that both Q4 revenue and earnings beat Wall Street expectations.

TSLA stock has gained 8% over the past 12 months. 

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