Elon Musk has secured multi-billion dollar investments for his AI company, XAI, leading to a 7% rise in Tesla stock. XAI aims to raise up to $6 billion at a $24 billion valuation, with plans to collaborate closely with Tesla, particularly in autonomous driving and robotics. This development comes amid fierce competition from Chinese EV maker BYD and new entrants in the autonomous vehicle market. While investors and analysts are optimistic, with some raising Tesla's price targets, there are concerns that Musk's involvement in multiple ventures could distract from Tesla's core business. The market remains divided on whether this investment will boost Tesla or serve as a distraction.
