Tesla Halts Production of Model S and X, Focuses on Humanoid Optimus Robot
Tesla has decided to halt production of its Model S and Model X vehicles. The company is shifting its resources toward the development of the humanoid Optimus robot and artificial intelligence investments.
Strategic Shift in Electric Vehicle Production
Tesla has been known as a pioneer in the electric vehicle market since its founding. However, with its latest decision, the company is turning a new page in the industry. Production of Tesla's Model X SUV and Model S sedan models will be terminated in the upcoming quarter. This move is interpreted as the clearest sign yet that the company is shifting its focus from traditional vehicle manufacturing to humanoid robot and artificial intelligence technologies.
Musk's Statement on the "Greatest Product in History"
During an earnings call, the company's CEO, Elon Musk, stated that the time had come to end the Model S and X programs. Musk described the Optimus humanoid robot, which has been in development for years, as the "greatest product in history." This decision is seen as a continuation of the strategic transformation previously discussed in our news titled Tesla Halts Model S and Model X Production, Shifts Focus to Autonomous Future.
Optimus Robot and AI Investments
The Optimus robot is designed for use in Tesla factories and production lines. The robot, weighing approximately 56 kilograms and standing 170 centimeters tall, is planned to begin production before the end of 2026. Musk announced that they aim for the robot to be available for public sale in 2027 and, with mass production, for each unit to achieve a cost below $20,000.
This move in robotics parallels other developments in the sector. For example, the news Waymo Plans to Launch Robotaxi Service in London in September points to the rise of autonomous technologies in the transportation sector. Similarly, products like the 3i G10+ Robot Vacuum highlight the increasing importance of robotics integration into consumer electronics.
Economic Impact and AI Investments
In a speech at the Davos Summit last week, Elon Musk argued that widespread artificial intelligence and robotics could lead to an unprecedented explosion in the global economy, raising living standards and eliminating poverty. Tesla also announced earlier this month that it would invest $2 billion (€1.6 billion) in Musk's AI company, xAI. This supports analyses that the company is shifting its focus to robots and AI during a period of declining revenue.
Expert Opinion: Electric Vehicles Still Important
Dan Coatsworth, Market Head at investment platform AJ Bell, counters the impression that electric vehicles are being sidelined. According to Coatsworth, Tesla's electric vehicle division should continue to operate smoothly to help finance Musk's growing robot vision. This view indicates that the electric vehicle business is not being shelved entirely, but its priority within the company's overall strategy is changing.
In conclusion, Tesla's decision sends important signals about the future of the automotive and technology industries. The company's decision to halt Model S and X production and replace them with Optimus robots is being evaluated not merely as a product change, but as a harbinger of a broader industrial transformation.
