By Akash Sriram and Abhirup Roy Jan 28 (Reuters) - Tesla said on Wednesday it will invest $2 billion in CEO Elon Musk's artificial-intelligence company xAI - and that production plans for its Cybercab robotaxi were on track for this year.

A mix of declining sales and new product expenditures combined to cut Tesla Inc.’s full-year and fourth-quarter earnings results, with the electric vehicle maker posting drops in revenue and profit but offering a rosy outlook.

The company announced it was ending production of its higher-end Model S and Model Y, and turning that production space over to making humanoid robots.

For tesla’s fourth quarter, Wall Street is looking for earnings per share of 43 cents from sales of $24.6 billion. A year ago, Tesla reported EPS of 73 cents from sales of $25.7 billion.

Investors are seeking more clarity Wednesday on how the company will meet CEO Elon Musk's ambitious timeline for robotaxi expansion. Tesla is set to be a major player in the U.S. autonomous-vehicle market,