TESLA CAPS WEEKLY AI SPENDING AT $200 PER STAFF MEMBER

The spending cap applies to all staff members across the company. Tesla did not provide details on which AI tools or services fall under the limit or how the company will monitor compliance. The exclusion of xAI beta products suggests Tesla may be testing Elon Musk's AI startup offerings internally. xAI, which launched in July 2023, has positioned itself as a competitor to OpenAI and other large language model developers. The memo indicates Tesla is tightening controls on operational expenses as it manages costs. The company has faced pressure to improve profitability amid slowing vehicle sales growth and increased competition in the EV market. Tesla did not immediately respond to requests for comment on the new policy. The implementation date of July 6 gives employees roughly a week's notice to adjust their AI tool usage.