Tesla CEO Elon Musk has announced that the company will discontinue production of its Model X and S vehicles, marking a significant shift away from its electric car business. In an investor call on Wednesday, Musk stated that the company plans to wind down production of these models next quarter, paving the way for the introduction of Tesla's upcoming Optimus robot.
Musk sees this pivot as crucial in driving the company's future growth, with AI and robotics at the forefront. Tesla has been struggling to meet Wall Street expectations, with vehicle sales and revenue declining year-over-year. Despite this, Musk remains optimistic about the company's prospects, touting its ambitious projects in AI-driven technologies like Optimus.
Production of Optimus is expected to begin before the end of 2026, with plans to sell the robot to the public in 2027. The factory in Fremont, California that currently produces Model S and X vehicles will be converted to manufacture Optimus, demonstrating Musk's confidence in the project.
However, not all of Tesla's projects have been met with success. The company's Cybertruck saw a significant decline in sales last year, highlighting the challenges facing electric vehicle manufacturers in an increasingly competitive market. BYD, a Chinese EV manufacturer, has been gaining ground on Tesla, offering consumers cheaper alternatives to its models.
Musk's vision for Optimus and other AI-driven projects has sparked debate about their feasibility and profitability. While some see these technologies as key drivers of future growth, others are more skeptical. As Tesla continues to navigate this transformation, investors will be watching closely to see how the company's pivot plays out in terms of its financial performance.
The recent earnings report showed a 3% decline in total revenue year-over-year and an 11% drop in automotive revenues. Despite these challenges, Musk's promise of building a "robot army" and ushering in a world without poverty continues to drive interest in Tesla's stock. However, the company's valuation will be closely tied to the success of its AI-driven projects, which remain unproven and not yet widely available to the public.
Tesla's decision to discontinue Model X and S production is a significant turning point for the company, marking a shift towards more ambitious and untested technologies. As the company looks to drive growth through AI and robotics, investors will be eager to see how these projects play out in terms of their financial performance and long-term viability.
Musk sees this pivot as crucial in driving the company's future growth, with AI and robotics at the forefront. Tesla has been struggling to meet Wall Street expectations, with vehicle sales and revenue declining year-over-year. Despite this, Musk remains optimistic about the company's prospects, touting its ambitious projects in AI-driven technologies like Optimus.
Production of Optimus is expected to begin before the end of 2026, with plans to sell the robot to the public in 2027. The factory in Fremont, California that currently produces Model S and X vehicles will be converted to manufacture Optimus, demonstrating Musk's confidence in the project.
However, not all of Tesla's projects have been met with success. The company's Cybertruck saw a significant decline in sales last year, highlighting the challenges facing electric vehicle manufacturers in an increasingly competitive market. BYD, a Chinese EV manufacturer, has been gaining ground on Tesla, offering consumers cheaper alternatives to its models.
Musk's vision for Optimus and other AI-driven projects has sparked debate about their feasibility and profitability. While some see these technologies as key drivers of future growth, others are more skeptical. As Tesla continues to navigate this transformation, investors will be watching closely to see how the company's pivot plays out in terms of its financial performance.
The recent earnings report showed a 3% decline in total revenue year-over-year and an 11% drop in automotive revenues. Despite these challenges, Musk's promise of building a "robot army" and ushering in a world without poverty continues to drive interest in Tesla's stock. However, the company's valuation will be closely tied to the success of its AI-driven projects, which remain unproven and not yet widely available to the public.
Tesla's decision to discontinue Model X and S production is a significant turning point for the company, marking a shift towards more ambitious and untested technologies. As the company looks to drive growth through AI and robotics, investors will be eager to see how these projects play out in terms of their financial performance and long-term viability.
, now it's all about Optimus robot, which is gonna be huge 
or so Elon Musk thinks... I mean, we've seen what happens when companies pivot too fast, remember what happened to Nokia? 
Yeah, that was a messy exit. But hey, Elon's all about disrupting industries and making a dent in the universe 
. Problem is, Tesla's still struggling to meet expectations and now they're relying on these unproven AI-driven projects... it's like playing with fire 
without having a safety net. BYD's doing just fine without Elon's fancy tech 
, they're offering cheaper alternatives and people are biting 
. We'll see how this whole Optimus thing plays out, but I'm keeping my eyes on the bottom line 
he thinks he can just pivot from making cars to making robots and everything will be good? 
not convinced, dude. BYD is already killing it in the EV market with cheaper options, why does Tesla need to make robots too? 
? And now they're gonna stop making cars in Fremont? That's like throwing good money after bad 
. They're investing big time in Optimus, which could pay off in a huge way if they can make it affordable and appealing to consumers 
. But think of it this way: when Tesla started out, electric cars were like, super expensive and nobody knew what was up 
. its interesting to see how this pivot plays out, tho. if it works out, tesla might just become a household name again 
. but for now, i'm still holding off on buying an optimus robot lol, gotta make sure those techs are stable first 
and now it's all about optimus, which is cool i guess... AI robots in our future? 
sounds like sci-fi but hey, who knows maybe it'll revolutionize the way we live 
. The Optimus robot thing is pretty interesting, but I don't know if it's gonna be a game-changer yet. I think BYD is giving Tesla a run for their money in the EV market 
. On one hand, it's cool that Elon is pushing boundaries with Optimus and AI-driven tech 
. What do you guys think?
And what about all these other companies, like BYD, that are already making electric vehicles and doing just fine without all the fuss? It's gonna be interesting to see how this plays out 
. it's all about ai and robotics now, which is interesting i guess 
. Don't get me wrong, Optimus sounds cool and all, but can we talk about how untested it is? Like, when's the last time we've seen a robot that can actually hold its own in the real world? 
. And what about the Cybertruck debacle? Not exactly a confidence booster for Tesla's tech prowess 
. I hope Musk has some solid data to back up his vision, or else he'll be facing a serious investor backlash 
️. The decline in Model X and S sales is notable, but Musk seems confident in Optimus' potential, which may be a gamble 
and now they're gonna make robots for pennies on the dollar?? that's just crazy talk 
! I mean, who needs fancy electric cars when you've got robots that can do everything for you? Elon Musk is a genius for seeing the future in AI and robotics - it's about time we stop relying on gas-guzzling vehicles that are just gonna make us more dependent on some corporation's "sustainable" energy plan 
It's time for innovation, not incremental electric car updates