Tesla ends production of Model S and Model X vehicles
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Hiking subscriptions, making robots, and selling fewer cars? Tesla is acting like a tech company in more ways than one.
Future of the company lies in equipping and running a global fleet of driverless taxis and in selling humanoid robots
Tesla's decision to kill the Model S and X signals the end of an era, and a clear pivot toward robotics, autonomy, and higher-margin future technologies.
By Akash Sriram and Abhirup Roy Jan 28 (Reuters) - Tesla said on Wednesday it will invest $2 billion in CEO Elon Musk's artificial-intelligence company xAI - and that production plans for its Cybercab robotaxi were on track for this year.
The company announced it was ending production of its higher-end Model S and Model Y, and turning that production space over to making humanoid robots.
The company will stop making the pioneering EVs in the second quarter of 2026, CEO Elon Musk announced Wednesday.
The automaker also said it would invest $2 billion in xAI, the artificial intelligence company controlled by its C.E.O., Elon Musk, and stop making the two oldest cars in its lineup.
It turns out investors are willing to forgive huge capital spending if a company's core business is thriving.