Musk's announcement comes hours after xAI debuted its latest flagship AI model, Grok 4. The 54-year-old discussed the recent innovation during a nearly hour-long livestream shared on xAI's X page, during which he did not mention the chatbot's integration into Tesla vehicles.

The Musk effect still underpins Tesla’s market cap. The shareholders who have pumped up its stock price are fixated on the technology future that he has conjured up, not the electric car business that is the company’s bread and butter today.