Tesla Revenue Drops as Company Pivots to AI, Robotics
Tesla experienced its first annual revenue decline in 2025 as the electric vehicle (EV) manufacturer shifted its focus towards artificial intelligence (AI) and robotics, according to a report by BBC Business. The company, led by Elon Musk, reported a 3% decrease in total revenues for the year, with profits plummeting 61% in the last three months.
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, BBC Business reported. This strategic shift comes as China's BYD surpassed Tesla as the world's largest EV maker in January.
Meanwhile, Facebook-owner Meta plans to nearly double its spending on AI projects this year, even as some executives warn of a potential bubble in the industry, according to BBC Business. Meta CEO Mark Zuckerberg announced the company expects to spend up to $135 billion on AI-related infrastructure in 2026, a significant increase from the $72 billion spent in 2025. Over the past three years, Meta has invested approximately $140 billion in an effort to lead the AI boom. Zuckerberg anticipates that "2026 [will] be the year that AI dramatically changes the way" the company operates.
In other global developments, South Korea has introduced what it claims are the world's first laws regulating AI, The Guardian reported. However, these laws have faced criticism from tech startups, who argue they are too restrictive, and civil society groups, who believe they do not go far enough. The legislation aims to establish a comprehensive framework for AI governance, potentially serving as a model for other nations.
British Prime Minister Keir Starmer met with Chinese President Xi Jinping on Thursday to strengthen economic ties between the UK and China, The Guardian reported. Starmer is the first UK leader to visit China in eight years, hoping to bolster relations amid uncertainty surrounding the US alliance.
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