Tesla profit slumps amid lower EV sales, AI spending surge
- by Deutsche Welle
- Jan 29, 2026
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But Musk urges investors to focus less on car sales and more on other aspects of the business such as its plans to introduce fully autonomous robotaxis.
The company's energy storage business is also booming. It posted strong numbers last quarter with revenues surging 25% to $3.8 billion.
Tesla is benefiting from massive demand from energy-guzzling data centers that are being built out around the US.
Musk also wants to turn Tesla from an EV maker to an AI company.
To that end, Tesla said Wednesday that it will invest $2 billion in Musk's artificial intelligence company xAI.
Your car, your politics: More than a ride
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Investors seem to keep faith in Musk
Investors appear to have kept faith in Musk, with Tesla's stock up 9% in the past year.
After the earnings were announced on Wednesday, shares were up 2.5% in after-hours trade.
One reason the stock has held up could be because of Musk's promise to remain focused on the company after a foray into US politics.
But it's not clear whether Tesla will have his undivided attention as he has plans to take his rocket company SpaceX public this year, which could distract him.
Edited by: Louis Oelofse
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