"Tesla CEO Elon Musk has made good on his threats to steer his EV maker away from his core business to focus instead on AI and its humanoid robot, Optimus. During the company's fourth-quarter earnings call this week, the mercurial CEO announced that "it's time to basically bring the Model S and X programs to an end with an honorable discharge" - the clearest sign yet that Tesla is looking to get out of the car business as sales continue to circle the drain."
""We expect to wind down S and X production next quarter and basically stop production," Musk explained. "That is slightly sad, but it's time to bring the S and X programs to an end, and it's part of our overall shift to an autonomous future." "If you're interested in buying a Model S and X, now would be the time to order it," he added, promising that existing owners would continue to receive support from the company as long as they're still on the road."
"Both the Model S and X, a luxury sedan and SUV respectively, currently start at very close to the $100,000 mark, almost three times as much as the Model 3's starting price, making them a major - and questionable - investment in 2026. Tesla's far more affordable Model 3 and Model Y, however, have become the company's biggest sellers by a huge margin, responsible for a combined 1.6 million deliveries last year, compared to sales of "other models" of just 50,850. In other words, the Model S and X were already dead in the water."
Elon Musk is shifting Tesla's focus from core automotive production to artificial intelligence and the Optimus humanoid robot, ending the Model S and X programs. Tesla will wind down S and X production next quarter and convert the Fremont factory into an Optimus production facility. Model S and X pricing near $100,000 made them uncompetitive, while Model 3 and Model Y accounted for about 1.6 million deliveries versus roughly 50,850 for other models. Tesla reported its first-ever annual revenue decline, with sales faltering across three of the past four quarters and a second consecutive year of overall decline. Existing S and X owners will receive ongoing support.
Read at Futurism
Unable to calculate read time
Collection
[
|
...
]