Yesterday, Elon Musk indicated that investors don't need to worry. The company is doing well and is in the right place.

With that last remark, he seems to be pointing to the deal with Microsoft. Microsoft wants to build something with Elon Musk's xAI. This deal could allow Elon Musk to distract attention from the dramatic situation Tesla is in. It's dramatic because the company is losing more than 50% in revenue, and its brand name has been severely damaged.

So, for Elon Musk to be happy with Microsoft's move is an understatement. It could be his salvation, as not everything is going down the drain right now. The situation at X isn't rosy either; the platform is losing more and more relevance.

Back to the Microsoft deal for a moment. It's not that Microsoft is so keen on xAI. It's more that they've fallen out with OpenAI. Microsoft wants to end its collaboration with OpenAI because that company has become a direct competitor in the consumer market.

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