Tesla Revenue Drops as Company Pivots to AI, Robotics
Tesla experienced its first annual revenue decrease in 2025 as the electric vehicle (EV) manufacturer shifted its focus toward artificial intelligence (AI) and robotics, according to the BBC. The company, led by Elon Musk, reported a 3% decline in total revenues and a 61% drop in profits during the last three months of the year.
The company also announced plans to discontinue production of its Model S and Model X vehicles. Tesla intends to repurpose its California manufacturing plant, previously used for these models, to produce its line of humanoid robots, known as Optimus, the BBC reported. This strategic shift comes as China's BYD surpassed Tesla as the world's largest EV maker in January, according to the BBC.
Meta Increases AI Spending
Meanwhile, Facebook-owner Meta plans to nearly double its spending on AI projects this year, despite warnings from some executives about a potential bubble in the industry, the BBC reported. Meta CEO Mark Zuckerberg announced the company expects to spend up to $135 billion this year, primarily on AI-related infrastructure. This figure is nearly double the $72 billion Meta spent on AI projects and infrastructure last year, according to the BBC. Over the past three years, the technology giant has invested roughly $140 billion in an effort to lead the AI boom, the BBC reported. Zuckerberg said he anticipates "2026 to be the year that AI dramatically changes the way..."
South Korea's AI Laws Face Opposition
South Korea has introduced what it calls the world's first laws aimed at regulating artificial intelligence, according to The Guardian. However, the new legislation has already encountered pushback from tech startups, which argue the laws are too restrictive, and civil society groups, which claim they do not go far enough, The Guardian reported.
UK Seeks Stronger Ties with China
In other international news, UK Prime Minister Keir Starmer is scheduled to meet with Chinese President Xi Jinping on Thursday to strengthen economic ties between the two countries, The Guardian reported. This marks the first visit by a UK leader to China in eight years, as Starmer hopes to solidify the bond with the superpower amid uncertainty surrounding the US alliance, according to The Guardian. Starmer insisted he was "clear-eyed" about the threat China poses to the UK's national security, The Guardian reported.
Mexico Cancels Oil Shipment to Cuba
Mexico's President Claudia Sheinbaum confirmed the cancellation of an oil shipment to Cuba, The Guardian reported. She insisted the decision was a sovereign one and not a response to pressure from the US, according to The Guardian. Fuel shortages are causing increasingly severe blackouts in Cuba, and Mexico has been the island's biggest oil supplier since the US blocked shipments.
Discussion
Join the conversation
Be the first to comment