Tesla reveals $2 billion investment in Elon Musk’s xAI and officially kills the Model S and Model X

Tesla CEO Elon Musk kicked off the new year by springing several eye-popping surprises on shareholders, including a $2 billion Tesla investment in one of his own companies (the artificial intelligence firm xAI), and the abrupt elimination of two of the company’s car models, the Model S and the Model X.

The moves, remarkable even in the context of Musk’s unfettered management style, underscore the profound transformation underway at the car maker as it loses ground in the EV market to Chinese rivals.