Tesla is ending production of its Model S sedan and Model X SUV at the end of next quarter as part of a broader effort to re-imagine its business around artificial intelligence (AI) and robotics. The decision comes after years of declining sales for these models, which have been overshadowed by more affordable options like the Model 3 and Model Y. By discontinuing production of the aging offerings, Tesla aims to free up resources for the development of its humanoid robot, Optimus, and other AI-related initiatives.
CEO Elon Musk has long emphasized the importance of autonomy in the future of transportation, and this move is seen as a key step towards achieving that goal. As part of its investment in AI technology, Tesla plans to allocate $2 billion to xAI venture, while also recommitting itself to the Cybercab program. However, some critics have questioned the feasibility of Musk's ambitious timeline for autonomous robotaxis, which he claims will cover half of all states in the US by the end of the year.
83 billion in 2025. With production of the Model S and X set to cease, Tesla is poised to shift its focus towards more cutting-edge technologies like AI and robotics. This move could have significant implications for the future of transportation and the role that companies like Tesla play in shaping it.
As the automotive industry continues to evolve, it will be interesting to see how Tesla's efforts to invest in AI and robotics pay off in the years to come. With a significant investment in capital expenditure, Tesla is committed to retooling its facilities and preparing for this new era of innovation. The company's decision to end production of the Model S and X represents a major shift in its strategy, one that could have far-reaching consequences for the industry as a whole.
This move by Tesla highlights the importance of adaptability and innovation in the rapidly evolving automotive industry. As companies like Tesla continue to push the boundaries of technology, it will be crucial for them to prioritize investments in AI and robotics to stay ahead of the curve.
