Because of a revenue drop, Tesla is stopping production of the Model S and Model X, its oldest cars. The company will put its money into robotics and artificial intelligence, especially the Optimus humanoid robot.
CEO Elon Musk shared in the Q4 2025 results presentation that the company will stop making the two models next quarter. A California factory that used to make these cars will be changed to build Optimus. Robot production should start by the end of 2026, with sales in 2027. Musk wants to make one million robots each year.
Tesla's yearly revenue fell for the first time, down 3% from last year in 2025. Car revenue dropped 11%, mostly because of slow sales in Europe. The company did do better than what Wall Street thought, reporting a €0.42 ($0.50) profit per share compared to the expected €0.38, with total sales of €22.9 billion ($24.9 billion) for the quarter.
Tesla says it's changing from a car company to an AI one because car sales are slowing down. Musk thinks Optimus, which he calls Tesla’s “best product ever,” will learn by watching and be able to do jobs like people.
People who own Model S and Model X cars will still get technical support. Musk said that Tesla’s future is not just about cars for people but more about AI products.
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