Austin, Texas - Elon Musk announced plans on Thursday to expand Tesla's so-called robotaxi service and integrate Grok, the controversial AI chatbot, into Tesla vehicles starting next week.

Tesla CEO Elon Musk said the company's robotaxi fleet will expand and integrate the controversial AI chatbot Grok. © Collage: REUTERS

The announcement, shared on Musk's social media platform X, drove Tesla shares up nearly 5%.

Grok 4, the latest version of the service, was unveiled in a livestream by Musk and his xAI team. It arrives in the middle of a scandal after the chatbot recently generated antisemitic content and praised Adolf Hitler on X.

Musk confirmed that Tesla's robotaxi operations in Austin, Texas, will expand this weekend, with plans to launch in the San Francisco Bay Area pending regulatory approval in the coming months.

The move signals Tesla's broader push to commercialize autonomous ride services, aiming to compete in a space currently dominated by companies like Waymo and Cruise. The rollout also aligns Tesla with competitors such as Mercedes-Benz and Volkswagen, which have already embedded AI assistants like ChatGPT into their vehicles.

The timing, however, is delicate. Grok's recent controversies have reignited scrutiny of Musk's ventures. What's more, Linda Yaccarino resigned this week as chief executive of X, further destabilizing leadership at the social media platform.

Meanwhile, Tesla's shareholder meeting has been scheduled for November 6, amid rising investor concerns over Musk's public political disputes and slowing EV sales.

The far-right billionaire last week launched his own America Party amid an ongoing public feud with his former ally, President Donald Trump.