According to Musk, the end of production for the Model S and X is scheduled for the next quarter. He noted that this decision is related to the need for the company to shift its focus, intending to concentrate on more mass-market products and new directions.
The factory in Fremont, California, where these models were previously produced, will be retooled to create Optimus robots. Additionally, the head of Tesla reported a 3% decrease in revenue in 2025 and a sharp 61% drop in profits over the last three months.
It is worth noting that in January of this year, the Chinese company BYD surpassed Tesla and became the leading electric vehicle manufacturer in the world.
Also, it should be mentioned that Musk's political activity has negatively impacted the company's image, resulting in protests at Tesla dealerships in various countries.
Alongside Tesla's shift away from a focus on electric vehicles, U.S. President Donald Trump has decided to roll back some government support programs for vehicles without internal combustion engines.
Once one of the most profitable automotive companies, Tesla is also actively developing the robotaxi sector.
During a call with investors, Musk announced a $2 billion investment in his artificial intelligence startup xAI. “Many investors have asked us for this; we are simply responding to their requests,” he noted, commenting on the funding decision.
This decision was made despite the fact that in a recent shareholder vote, the number of opponents and abstentions regarding the idea of investing in xAI exceeded the number of supporters.
Last year, shareholders unanimously approved a record compensation package for Musk of nearly $1 trillion, which he can receive if he significantly increases the company's market capitalization over the next decade.
Musk also reported plans to significantly increase expenses, expecting them to rise by about $20 billion. “Next year, we are expecting significant capital expenditures. We are making large investments for a great future,” he added.
Against the backdrop of this news, the company's stock jumped by 2% during after-hours trading.
Analysts point out that Tesla's transition to new business directions is occurring amid the obsolescence of its current lineup of electric vehicles. “The Model S and Model X have long become low-volume models for Tesla,” said Jessica Caldwell, head of the analytics department at Edmunds. She also noted that it makes sense to focus on more mass-market models, such as the Model 3 and Model Y, and to explore new directions for business expansion.
