Tesla has made a bold move to pivot away from its lucrative electric vehicle business, announcing the discontinuation of production for its Model X and S models. In a surprise move, CEO Elon Musk revealed during an investor call that the company would bring these programs to an end, with production expected to wind down next quarter.
The Fremont factory in California, which has been the backbone of Tesla's automotive business, will be repurposed to produce the company's upcoming Optimus robot. This marks a significant shift for Tesla, which has long been focused on developing autonomous electric vehicles and other hardware-centric products.
Musk has stated that Tesla's future growth is tied to its AI-driven projects, including the Optimus robot and self-driving cars. While these technologies remain unproven and not widely available, they have allowed Musk to promise unparalleled growth in the coming years.
Tesla's financials paint a mixed picture. The company reported a 3% decline in total revenue year-over-year, with automotive revenues dropping 11%. Vehicle delivery numbers also declined by 16%, hurt by reduced demand in Europe.
Despite this, Tesla's stock rose 4% in after-hours trading on the news, fueled by optimism over its AI-driven projects and Musk's promise of building a "robot army". The company has invested $2 billion into xAI, Musk's artificial intelligence venture, and plans to start production of Optimus before the end of 2026.
However, not all of Tesla's announcements have been met with enthusiasm. The Cybertruck, which Musk touted as the best vehicle Tesla has ever made, saw a drastic decline in sales last year. The company is also facing increasing competition from other electric vehicle manufacturers, particularly China's BYD, which overtook Tesla as the world's largest electric carmaker last year.
As Tesla looks to pivot towards AI-driven projects, it remains to be seen whether its investments will pay off. One thing is certain, however: Musk's vision for a future where robots and autonomous vehicles usher in a "world without poverty" is undeniably ambitious.
The Fremont factory in California, which has been the backbone of Tesla's automotive business, will be repurposed to produce the company's upcoming Optimus robot. This marks a significant shift for Tesla, which has long been focused on developing autonomous electric vehicles and other hardware-centric products.
Musk has stated that Tesla's future growth is tied to its AI-driven projects, including the Optimus robot and self-driving cars. While these technologies remain unproven and not widely available, they have allowed Musk to promise unparalleled growth in the coming years.
Tesla's financials paint a mixed picture. The company reported a 3% decline in total revenue year-over-year, with automotive revenues dropping 11%. Vehicle delivery numbers also declined by 16%, hurt by reduced demand in Europe.
Despite this, Tesla's stock rose 4% in after-hours trading on the news, fueled by optimism over its AI-driven projects and Musk's promise of building a "robot army". The company has invested $2 billion into xAI, Musk's artificial intelligence venture, and plans to start production of Optimus before the end of 2026.
However, not all of Tesla's announcements have been met with enthusiasm. The Cybertruck, which Musk touted as the best vehicle Tesla has ever made, saw a drastic decline in sales last year. The company is also facing increasing competition from other electric vehicle manufacturers, particularly China's BYD, which overtook Tesla as the world's largest electric carmaker last year.
As Tesla looks to pivot towards AI-driven projects, it remains to be seen whether its investments will pay off. One thing is certain, however: Musk's vision for a future where robots and autonomous vehicles usher in a "world without poverty" is undeniably ambitious.
I'm not sure if Elon Musk's plan to focus on AI-driven projects like the Optimus robot is gonna work out... 
I mean, yeah, it sounds cool and all, but how many people actually need a robotic assistant in their homes? And what about the environmental impact of producing these robots? We should be focusing on sustainable energy solutions, not making more stuff to consume. 
I mean, think about it... Tesla's always been all about the tech, but now they're just gonna stop making cars? 
Like, what's next? They'll just be producing robots and AI stuff forever? 
That thing was supposed to revolutionize the automotive industry and it ended up being a lemon. 
I'm just saying, I need some hard evidence before I get all excited about Tesla's AI-driven plans... 
. Elon Musk has this vision of a "world without poverty", and while that sounds amazing, what if his robot army doesn't actually make a difference in people's lives? 
and whats up with the financials? decline in revenue & sales... sounds like a mess. 
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. On the other hand, I'm not convinced that Tesla's AI tech is quite there yet... we've seen some promising advancements, sure, but those self-driving cars and robots are still in the experimental phase 
. Time will tell if their AI-driven projects pan out or not, but I'm definitely keeping an eye on this one 
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. it's still a bit scary how much money musk is pouring into xai though $2 billion is some serious cash 
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. I mean, Tesla's EV business has been doing pretty well, so why shut down production for the Model X and S? Is it really worth $2 billion to pivot into robots and AI? And what about all those Cybertruck sales that tanked last year? It seems like a bit of risk-taking to me 
. I'd love to see some concrete results on these new projects before putting my faith in them 
These cars were so sleek and futuristic, I loved 'em! But at the same time, I get it - Elon's always pushing the boundaries of innovation, even if it means cutting off some old threads 
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. One thing that's for sure tho: if Tesla wants to make its vision of a "world without poverty" a reality, they're gonna need some serious innovation 
And hey, Elon Musk's vision for a world without poverty is actually pretty inspiring – we just gotta believe in him (and his robots)! 
Plus, it'll be interesting to see how this Optimus robot thing plays out. Maybe they can even use it to make cars more efficient or something? 
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. They're already struggling with declining sales and increased competition from BYD. But if Musk's AI vision does pay off... watch out world! 
And what's up with Elon Musk's confidence in his AI-driven projects? Is he reading too much into this whole "robot army" thing or is there actually something to it? 
anyway, optimus robot's gonna be weird to watch in action, like a giant metal toaster on wheels 