Tesla Halts Production of Model S and X; CEO Musk Pivots Factory Capacity to Humanoid Robots

Washington D.C. The American electric vehicle manufacturer Tesla has announced the cessation of production for its Model S and Model X. Company CEO Elon Musk, during a meeting on Wednesday, disclosed that production of these expensive models would stop, and the factory capacity would henceforth be utilized for manufacturing humanoid robots.

Musk also signaled that electric vehicle sales might no longer be Tesla's primary focus. According to him, the fully autonomous robot taxi named 'Cybercab,' which will feature two seats, no steering wheel, and no pedals, is expected to vastly outsell all other Tesla vehicles in the future. However, Tesla's financial health appears to be weakening.

In the final quarter of 2025, the company's adjusted earnings decreased by 16 percent, while net income plummeted by 61 percent. On an annual basis, the company's net profit fell by 46 percent, a reduction of $3.30 billion. Tesla experienced its largest annual decline in sales during the fourth quarter.

Tesla's annual profit, which reached a record high of $12.60 billion in 2022, has shrunk to 30 percent of that figure by the end of 2025. Data showing that revenue has declined in nine of the last ten quarters indicates the company is under pressure.

Meanwhile, Tesla's image among some customers in the US and Europe has weakened due to Musk's political activities and his relationship with former US President Donald Trump. The reduction in electric vehicle sales following the removal of US tax credits, coupled with the rise of competitors like BYD in China, presents further challenges for Tesla.