On January 29, news emerged that Tesla's stock experienced a 3% increase during pre - market trading. This rise followed the company's report of better - than - anticipated profits, which were buoyed by higher - than - projected profit margins.

Tesla made an announcement stating that it would allocate $2 billion to xAI, a privately - held artificial intelligence firm established by its CEO, Elon Musk. Moreover, the company has plans to redirect a portion of its automotive production capacity towards robot manufacturing.

In addition, Tesla anticipates that its capital expenditures will surpass $20 billion in 2026. Analysts from Evercore are of the opinion that this capital spending blueprint could potentially push the company's free cash flow into negative territory. Following the announcement, the gains in the pre - market share price saw a slight contraction. Analysts also pointed out that, at present, the longevity of the company's high profit margins is still shrouded in uncertainty.