EU Launches Probe into X Platform Over AI-Generated Content
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 26 2026
0mins
Should l Buy TSLA?
Source: seekingalpha
- Probe Initiation: The European Commission has opened an investigation into Elon Musk's social media platform X to assess compliance with EU digital legislation, particularly regarding risk mitigation and content governance, which could impact the platform's compliance and operational model.
- Content Governance Concerns: Irish MEP Regina Doherty highlighted that the probe will examine whether the platform effectively assesses risks and prevents the spread of illegal and harmful content, potentially exposing X to legal liabilities and reputational risks.
- Implementation of Technical Measures: xAI has implemented technological measures to restrict Grok AI from generating images of real people in revealing clothing, applying this restriction to all users, which aims to address legal compliance pressures and protect user rights.
- International Reactions: Several countries, including Japan, the UK, Canada, and Malaysia, have initiated probes related to Grok's generation of deepfake images, reflecting a global urgency and concern regarding the regulation of emerging AI technologies.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 401.93 USD with a low forecast of 25.28 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 421.810
Low
25.28
Averages
401.93
High
600.00
Current: 421.810
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strategic Shift: To free up manufacturing capacity, Tesla will discontinue the Model S and Model X, focusing instead on the development of the humanoid robot Optimus, which Musk believes could generate $10 trillion in revenue over the long term, reflecting the company's commitment to future technologies.
- Autonomous Taxi Prospects: Tesla plans to launch the Cybercab autonomous taxi in 2026, and while it has yet to receive regulatory approval, successful deployment could create new revenue streams to offset declining EV sales, emphasizing the need for timely execution.
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- Tesla's Investment: Tesla announced a $2 billion investment in xAI during its recent earnings call, highlighting its close ties with xAI and indicating potential for deeper collaboration in AI, which could further integrate electric vehicles with AI technologies.
- Future Outlook: Analyst Dan Ives predicts that Musk may look to combine Tesla with SpaceX and xAI within the next 12 to 18 months, creating a powerful AI ecosystem that drives advancements in robotics and provides energy for the AI revolution, which would positively impact Tesla's future trajectory.
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- Increased Risk Appetite: As interest rates begin to decline, companies are becoming more willing to take risks in pursuit of higher valuations, and financial sponsors recognize the need to transact to return capital to shareholders, thus enhancing market activity.
- Investor Confidence Rebound: After three years of caution, investors are now eager to seek out quality assets for investment, with a renewed focus on compelling narratives, further driving the resurgence of M&A activity.
See More
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- Strategic Merger Outlook: Analyst Jed Dorsheimer from William Blair sees a logical path for Tesla (TSLA) to merge with SpaceX (SPACE) and xAI (X.AI), citing strategic alignment in power, energy, and autonomy that could enhance overall business synergies.
- Shift in Production Priorities: Tesla's (TSLA) decision to scale back Model S and X production in favor of manufacturing Optimus humanoid robots indicates a significant shift in business focus, suggesting a potential direction for future mergers.
- Impact of Autonomy: Dorsheimer notes that the rise of autonomous driving technology could fundamentally reshape Tesla's (TSLA) automotive business, with average car utilization in the U.S. at only 5%, leading to a dramatic decrease in future car demand and altering market dynamics.
- Energy Division Advantage: He also highlights Tesla's (TSLA) energy division as a
See More
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