Elon Musk is ending Tesla’s luxury car production to focus on AI-driven robots, aiming to transform the company amid falling sales and growing competition.
Tesla CEO Elon Musk announced plans to end production of the Model S and X, saying, “It’s time to bring the S and X programs to an end, and it’s part of our overall shift to an autonomous future.” The Fremont factory will be repurposed to produce the company’s humanoid robot, Optimus.
Musk set ambitious targets, including producing one million robots annually, despite production struggles last year. He promised a third-generation design soon, claiming the robot could surpass having a “personal R2-D2” or “C3PO.” Investors remain supportive even as Tesla faces declining car sales and a tarnished brand image.