Elon Musk Halts Model S and X Production as Tesla Pivots to Robotics

Elon Musk announced that Tesla will discontinue its Model S and Model X production in the first quarter of 2026 to repurpose factory space for the mass production of Optimus humanoid robots.The company reported a 46% drop in annual net income to $3.8B and its first ever yearly revenue decline, though quarterly earnings per share of $0.50 exceeded market expectations.Tesla plans to invest $20B this year into robotics and artificial intelligence, including a $2B stake in xAI, as it faces increasing competition from BYD and Waymo in USA.