Tesla abandons Model S and Model X for robot production
Tesla CEO Elon Musk announced the discontinuation of production of two models — Model S and Model X. Instead, the freed production capacity will be used to create humanoid robots.
Tesla CEO Elon Musk announced the discontinuation of production of two models — Model S and Model X. Instead, the freed production capacity will be used to create humanoid robots.
Elon Musk also hinted that sales of electric cars, which Tesla helped bring to the global mass market, will soon take a back seat for the company, writes CNN.
Tesla's electric vehicle sales and profits, on which the company still depends to fund its ambitious future in autonomy and AI, continue to fall.
Tesla reported on Wednesday that its adjusted profit fell 16% in the last three months of 2025. Net income fell even more — by 61% for the quarter and by 46% for the year, which in monetary terms means a decrease of $3.3 billion.
In the fourth quarter, the company recorded its largest year-over-year sales decline in its history, as well as the largest annual sales decline for a company that had once grown at a rate of nearly 50% per year.
Tesla's profits have fallen in nine of the last ten quarters. By 2025, the company's annual revenue is only 30% of the $12.6 billion it recorded in 2022, its peak year for profitability.
The brand's reputation suffered last year among some American and European buyers, a backlash over Musk's political activities and his close relationship with President Donald Trump. And overall U.S. electric vehicle sales declined later that year after the elimination of a $7,500 tax credit for electric vehicle buyers.
Tesla also faces increasing competition from other automakers, especially in China, Tesla's second-largest market after the United States. In fact, Tesla is set to lose its title as the world's largest electric vehicle manufacturer to Chinese automaker BYD in 2025 .
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