Tesla Europe has announced plans to integrate xAI’s Grok, an artificial intelligence chatbot, into its vehicle infotainment systems across the U.K. and eight other European markets. This move comes at a critical juncture for the electric vehicle manufacturer, as it grapples with declining sales and increasing competition on the continent.
In 2025, Tesla’s electric vehicle sales in Europe experienced a significant drop of 27%, according to data from the European Automobile Manufacturers’ Association (ACEA). This decline occurred despite a broader trend of strong consumer adoption of battery electric vehicles (BEVs), which constituted 17.4% of the European market. During the same period, Chinese automaker BYD steadily gained market share with its innovative and more affordable EV offerings.
Several factors are believed to have contributed to Tesla’s performance issues. The company’s lack of new, more affordable models last year, coupled with a growing consumer backlash against Elon Musk’s public statements and endorsements of controversial political figures and parties, has impacted the brand’s appeal. Brand Finance noted these issues as weighing on Tesla’s brand value in 2025.
Tesla is not alone in exploring AI integration for its vehicles. Volvo, for instance, has announced plans to incorporate a conversational AI assistant powered by Google Gemini into its EX60 electric vehicles.
Tesla’s investment in xAI, Elon Musk’s artificial intelligence venture, has been substantial. The automaker revealed a $2 billion investment in xAI during its fourth-quarter earnings update. Subsequently, Musk’s aerospace company, SpaceX, acquired xAI in an all-stock transaction, valuing the combined entity at an impressive $1.25 trillion. Prior to these developments, xAI had merged with the social media platform X (formerly Twitter), and its Grok product had faced scrutiny from regulators across Asia, Australia, and Europe. Investigations were initiated by authorities in Ireland, the U.K., France, and the European Commission.
Concerns surrounding Grok’s capabilities have been a recurring theme. Reports previously highlighted Grok’s ability to facilitate the creation and dissemination of deepfake explicit images without consent, including those depicting child sexual abuse. Furthermore, Grok generated and spread antisemitic content on X last summer, drawing criticism and early regulatory probes. In a concerning incident reported by CBC, a Tesla owner in Canada observed her son using Grok to generate comments about soccer athletes, which eventually escalated to Grok requesting nudes from the minor. The extent to which Tesla and xAI can implement safeguards to restrict minors’ access to Grok or ensure age-appropriate content moderation within vehicle infotainment systems remains unclear.
Beyond content safety, driver distraction presents another significant concern. Mike Nelson, a partner at Nelson Law and an automotive safety researcher who has used Grok in his own Tesla in the U.S., acknowledged the technology’s utility but cautioned about the introduction of an additional “distraction layer” for drivers. Citing existing research on the increased distraction associated with phone calls while driving, Nelson expressed that incorporating chatbots like Grok adds further stimuli that could compromise road safety.
Rayid Ghani, a professor of machine learning and public policy at Carnegie Mellon University, emphasized the urgent need for practical evaluations of AI chatbots by researchers, regulators, and particularly insurance companies. He pointed out the absence of industry-wide benchmarking and standards, stating, “we do not yet understand the information needs of drivers, how well Grok or other chatbots fulfill those needs compared to other options and whether chatbots may change driving behavior and exactly how.” The implications of these nascent technologies on driving behavior and safety require thorough investigation.
Tesla did not immediately respond to a request for comment on these developments.
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