However, CEO Elon Musk prefers to blame a different culprit: Interest rates. Time and again, the Tesla chief has gone to great lengths to spell out the challenges that interest rates have presented for potential Tesla buyers.

A revenue split would likely weigh on Tesla's stock, but shares appeared to benefit from markets recovering from last week’s sell-off.

A recent post by X owner, Elon Musk via his social media platform has clarified that Tesla does not need to "license anything" from xAI. This stems from a report that The Wall Street Journal shared yesterday about Tesla getting access to xAI's "resources" and "technology" in exchange for receiving some of the car company's revenues.

Elon Musk's multi-billion dollar supercomputer in Memphis, Tennessee will train xAI's Grok chatbot. Musk founded xAI in 2023 to develop large language models and artificial intelligence products as an alternative to AI tools created by OpenAI,

For Tesla stock, who needs robotaxis when you have interest rates? Tesla stock was down to start trading on Friday after an epic gain on Thursday. Shares of the electric vehicle maker were off 1.8% at $239.