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.

In its earnings report on Wednesday, Tesla said it invested $2 billion in xAI, Elon Musk's artificial intelligence startup.

Elon Musk said Tesla Inc. needs to build and operate what he is calling a “TeraFab” to manufacture semiconductors, a massive undertaking that will cost billions of dollars and mark another expansion beyond what had been the company’s core electric vehicle business.

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.

Tesla's annual profit plunged to its lowest level since the pandemic as it ceded the title of the world's biggest electric vehicle maker to a Chinese rival and boycotts hammered sales.

Tesla's brand value declined while BYD's surged last year, according to research by Brand Finance

Tesla is ending Autopilot and steering customers toward higher-priced FSD subscriptions, signalling a major shift in its driver-assistance strategy. The post Tesla kills Autopilot for good and Musk warns of FSD price hikes appeared first on Digital Trends.

Jan 26 (Reuters) - Tesla investors head into earnings on Wednesday looking for evidence that Elon Musk's long-promised self-driving bet is beginning to materialize even as results show growing strain on the company's electric-vehicle business.