Tesla to invest USD2b in xAI, Q4 earnings top estimates
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The news: Tesla shares rallied after Elon Musk's electric vehicle company topped estimates for the fourth quarter and announced a USD2 billion ($2.8 billion) investment in xAI.
The numbers: Tesla shares were up more than 3% in extended trading on Wall Street, after the company reported its Q4 earnings at the close.
Tesla reported fourth-quarter adjusted earnings per share of 50 cents, topping market estimates of 45 cents, according to Bloomberg data.
Quarterly revenue hit USD24.90 billion, compared to an expected USD25.11 billion. Its gross margin was 20.1%, above estimates of 17.1%.
Tesla also announced that it has agreed to invest USD2 billion to buy Series E preferred shares of Musk's AI company xAI.
The context: Tesla used its earnings announcement to reveal further investments in autonomous robots infrastructure, and plans to ramp up six new production lines across its products.
The company said its Cybercab, Tesla Semi and Megapack 3 are on schedule for volume production starting in 2026. First generation production lines for its humanoid robot Optimus are being installed in anticipation of volume production, it said.
The source: Tesla
