Tesla Inc. (NASDAQ: TSLA) delivered stronger-than-expected fourth-quarter earnings, reinforcing its strategic shift toward artificial intelligence even as its core electric vehicle business continues to face pressure. The EV giant reported adjusted earnings of $0.50 per share on revenue of $24.9 billion, surpassing Wall Street forecasts of $0.45 per share and $24.78 billion in revenue. A major highlight from Tesla’s earnings report was the board’s approval of a $2 billion investment in xAI, Elon Musk’s artificial intelligence startup. Despite the upbeat earnings, Tesla’s automotive revenue declined 11% year-over-year, reflecting softer vehicle deliveries and ongoing pricing pressure. Capital expenditures totaled $8.5 billion for the year, driven largely by the expansion of its Cortex AI training clusters in Texas.