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Musk ditches EVs for AI: $20B bet on robotics?

Jan 28, 2026, $Tesla (TSLA.US)$ released FY2025 results, logging its first annual 3% revenue drop and a 46% slump in net profit. Yet it beat earnings estimates, lifting post-market shares over 3%. Musk announced a strategic AI pivot: discontinue Model S/X, earmark over $20B in 2026 capex for AI and robotics, and disclose a $2B investment in xAI. Its energy business rose 25% in Q4, offsetting declines in auto sales.
1. Can $Tesla (TSLA.US)$ 's AI bet reverse its auto business downturn?
2. Can the $20B robotics-related capex drive a new growth cycle?
Jan 28, 2026, $Tesla (TSLA.US)$ released FY2025 results, logging its first annual 3% revenue drop and a 46% slump in net profit. Yet it beat earnings estimates, lifting post-market shares over 3%. Musk announced a strategic AI pivot: discontinue Model S/X, earmark over $20B in 2026 capex for AI and robotics, and disclose a $2B investment in xAI. Its energy business rose 25% in Q4, offsetting declines in auto sales.
1. Can $Tesla (TSLA.US)$ 's AI bet reverse its auto business downturn?
2. Can the $20B robotics-related capex drive a new growth cycle?
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