Tesla has announced a $2 billion acquisition of an AI hardware company in 2026, largely in stock, that is subject to certain service conditions and performance milestones dependent on the successful deployment of the company's technology. The acquisition was announced in a single line in a Q1 2026 10-Q filing, which did not specify the company or specify how many shares would be issued. The structure of the acquisition indicates that only about $200 million is guaranteed, and the remaining $1.8 billion is tied to performance milestones and service conditions. This strategy could incentivize the target company's engineers to stay focused on their technical goals. The announcement comes as Tesla ramps up its AI hardware ambitions.