In a move that will significantly impact the automotive landscape, Tesla CEO Elon Musk has announced that production of the Model S sedan and Model X SUV will be discontinued. This decision is part of Tesla's plan to shift its focus towards building robots, as revealed by Musk in recent statements.
The Fremont factory in California, where these vehicles were produced, will now be repurposed for the manufacturing of Optimus robots. With this change, Tesla aims to stay competitive in a rapidly evolving market dominated by electric vehicles (EVs).
As the global sales leader, Toyota has solidified its position with record-breaking sales figures. Meanwhile, Mercedes-Benz Group's headquarters is set to remain in Germany, despite US Commerce Secretary Howard Lutnick's efforts to persuade Ola Källenius to relocate.
In other news, Infiniti has appointed a new leader and Lexus racing will be coming to an end as Gazoo Racing takes over. The automotive sector continues to experience significant changes, with Lincoln and Ford dealers facing concerns about sales in 2026.
Audi has confirmed the arrival of a next-generation RS 5 with a plug-in hybrid powertrain, while Hyundai is recalling 568,567 Palisade SUVs due to an issue with side curtain airbags. Additionally, a new technology capable of charging a battery in just 10 minutes has been unveiled.
As the industry navigates these changes, it remains to be seen how Tesla's shift towards robot production will impact its customers and competitors.
This move by Tesla marks a significant shift in the company's strategy, as it prioritizes innovation over traditional vehicle production. With the rise of electric vehicles, companies must adapt quickly to remain competitive, and Tesla's decision to focus on robots is likely a response to this evolving market.
