Tesla Shifts Focus to AI and Robotics, Cuts Car Models Amidst Revenue Decline
Tesla, led by Elon Musk, is shifting its focus to artificial intelligence (AI) and robotics, leading to a restructuring of its car model lineup. The electric vehicle (EV) maker reported a 3% decrease in annual revenue for 2025, with profits plummeting 61% in the last three months of the year, according to BBC Business.
As part of this strategic shift, Tesla announced plans to discontinue production of its Model S and Model X vehicles. The California manufacturing plant previously used for these models will now be repurposed to produce Tesla's humanoid robots, known as Optimus, BBC Business reported.
This transition comes as Tesla faces increasing competition in the EV market. In January 2026, China's BYD surpassed Tesla as the world's largest EV maker.
In other news, Mexico's President, Claudia Sheinbaum, confirmed the cancellation of an oil shipment to Cuba. She insisted the decision was a sovereign one and not a response to pressure from the U.S., The Guardian reported. Fuel shortages are causing increasingly severe blackouts in Cuba, and Mexico has been the island's biggest oil supplier since the U.S. blocked shipments.
Meanwhile, in the UK, Prime Minister Starmer met with China's Xi Jinping, expressing a desire for a "more sophisticated" relationship with China, according to The Guardian. China is the world's second-biggest economy and Britain's third-largest trading partner, with the UK exporting £45 billion of goods and services annually. Starmer emphasized that he is aware of the potential threats China poses to the UK's national security, with Downing Street stating that safeguards would be implemented to protect against espionage.
South Korea has also made headlines with the launch of what it calls "world-first" laws aimed at regulating artificial intelligence, The Guardian reported. However, these laws have faced criticism from tech startups, who believe they are too restrictive, and civil society groups, who argue they do not go far enough.
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