Tesla Shifts Focus to Robotics and AI, Cuts Car Models
Tesla reported a decline in annual revenue for the first time as the electric vehicle (EV) maker shifts its focus to artificial intelligence (AI) and robotics, according to a report by BBC Business. The company, led by Elon Musk, announced plans to end production of its Model S and Model X vehicles, repurposing its California manufacturing plant to produce humanoid robots known as Optimus.
The company's annual revenue fell by 3% in 2025, with profits declining 61% in the last three months of the year, BBC Business reported. Tesla will now concentrate its resources on AI and robotics, signaling a strategic shift in the company's direction.
This decision comes as China's BYD surpassed Tesla as the world's largest EV maker in January, according to BBC Business. Musk's involvement in other ventures may also have contributed to the company's changing priorities.
Meanwhile, Meta, the owner of Facebook, 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 Technology. Meta expects to spend up to $135 billion on AI-related infrastructure in 2025, a significant increase from the $72 billion spent last year.
Mark Zuckerberg, Meta's boss, stated that he expects "2026 to be the year that AI dramatically changes the way we" operate, according to BBC Technology. In the last three years, Meta has invested roughly $140 billion in an attempt to get ahead of the AI boom.
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