Musk Shifts Tesla Focus to Robotics as Model S and X Production Ends

Elon Musk announced that Tesla will discontinue the Model S and Model X as part of a $20 billion strategic shift toward robotics and artificial intelligence.The Fremont factory in California will be repurposed to manufacture one million Optimus humanoid robots annually while the company expands its Robotaxi service to seven new markets across the USA.This transition follows a 10% decline in automotive revenue in 2025 as Tesla faces increased competition from BYD and Alphabet.