"CEO Elon Musk has announced that the Model S and X vehicles are getting an "honorable discharge," with production of them ending sometime next quarter. Instead, the company will use some of its factory space to build its humanoid Optimus robots. The news, shared during Tesla's quarter-four earnings call on Wednesday, January 28, comes as Tesla expands manufacturing of its Optimus robots, full self-driving vehicles, and robotaxis."
" That report holds many of the answers as to "why." Tesla's total revenue fell 3% year-over-year from $25.7 billion to $24.9 billion, while its automotive revenues fell 11% YOY from $19.8 billion to $17.7 billion. In quarter four, production of Model S and X vehicles dropped by 48% YOY, while deliveries fell 51% YOY. None of this was helped by Elon Musk's polarizing political views, on-again, off-again relationship with President Donald Trump, and the termination of $7,500 EV tax credits last fall."
Tesla will end production of the Model S and Model X next quarter and repurpose some factory space to produce Optimus humanoid robots. The company is expanding manufacturing of Optimus robots, full self-driving vehicles, and robotaxis while framing itself as a "physical AI company." Total revenue fell 3% year-over-year to $24.9 billion and automotive revenue declined 11% to $17.7 billion. Model S and X production dropped 48% and deliveries dropped 51% year-over-year in quarter four. Declining demand, loss of $7,500 EV tax credits, and Elon Musk’s polarizing politics and ties with President Trump contributed to the downturn.
Read at Fast Company
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