Tesla just wrapped up its earnings call for the 2025 fiscal year, in which it recorded that its year-on-year profits dropped by nearly half. Its GAAP net income came to US$3.8 billion, down from $7.1 billion in 2024,

CEO Elon Musk says the company will close down production of two older car models, S and X, and convert the Fremont factory to produce its Optimus robots instead.

Tesla reported fourth quarter earnings that topped estimates after the bell on Wednesday. The company also said its Optimus robots were on track for an end of year start of production.

Tesla has reported its first-ever annual revenue decline, just as the automaker’s chief executive officer Elon Musk ramps up billions of dollars in investment into artificial intelligence, robotaxis and humanoid robots.

Speaking at the World Economic Forum in Davos, Switzerland last week, Musk said that Tesla is “planning to make its Optimus robots available for sale to the public by the end of 2027.” That is when Tesla will be confident that the robots will be highly reliable, safe and functional. The robots will be able to perform any task, he said.

Tesla reported a 61-percent drop in fourth-quarter profits on Wednesday due to lower auto sales and increased expenses as CEO Elon Musk ramps up technology investments.