Tesla Shifts Focus to Robotics and AI, Cuts Car Models
Tesla is shifting its focus to artificial intelligence (AI) and robotics, leading to a reduction in car models, according to the company. The electric vehicle (EV) maker reported a 3% decline in total revenues in 2025, marking the first annual revenue decrease, while profits fell 61% in the last three months of the year, according to BBC Technology.
As part of this strategic shift, Tesla announced plans to end production of its Model S and Model X vehicles. The manufacturing plant in California that previously produced these cars will now be used to produce Tesla's line of humanoid robots, known as Optimus, according to BBC Technology.
The move comes as Tesla faces increasing competition in the EV market. In January, China's BYD overtook Tesla as the world's biggest EV maker, according to BBC Technology.
The company's shift towards robotics and AI reflects a broader trend in the technology industry, with companies increasingly investing in these areas. Tesla CEO Elon Musk's involvement in other ventures, such as SpaceX and Neuralink, may also be influencing the company's strategic direction.
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