Tesla’s $2 Billion xAI Investment: Taha Abbasi on Why the Physical AI Thesis Takes Shape

Taha Abbasi analyzes Tesla’s disclosed $2 billion investment in xAI—and what it reveals about the company’s strategy to bring AI from digital environments into the physical world. Tesla’s Q4 2025 earnings report contained a notable disclosure: the company invested $2 billion in xAI “as part of their recent publicly-disclosed financing round.” The investment, according to …