Tesla Halts Model S and X Production, Factory Shifts to Humanoid Robot Manufacturing

Strategic Shift in Production

Tesla is significantly altering its strategy in the electric vehicle market. The company's CEO, Elon Musk, announced during the fourth-quarter financial results meeting that production schedules for the Model S and Model X would be terminated. Musk stated, "We expect to end S and X production in the next quarter and basically stop production."

Focusing on an Autonomous Future

This decision was announced as part of the company's overall strategy. Musk described the halt in production of these models as "a bit sad," while emphasizing that it is part of the overall shift in the company's transition to an autonomous future. Current vehicle owners were assured that support would continue as long as their vehicles are on the road.

Factory Transformation

The most striking announcement concerned the fate of the Fremont factory in California. The facility, which has been producing automobiles for over a decade, will be transformed into a production site for Tesla's humanoid robot, Optimus. This move is interpreted as the clearest indicator yet that the company is shifting its focus from vehicle production to robotics and artificial intelligence.

Sales Figures and Financial Performance

The decision coincides with a decline in the company's sales performance. Tesla reported a drop in annual revenue for the first time. It was announced that sales have been weak in three of the last four quarters. In the last quarter of the previous year, a sharp 61% decline in profitability was recorded compared to the same period the year before.

The Model 3 and Model Y remain the company's undisputed highest-volume models. Last year, total deliveries of these two models reached 1.6 million, while sales in the "other models" category (primarily Model S and X) remained at just 50,850 units. This situation forms the backdrop for the decision to discontinue production of the luxury models. Tesla's revenue decline and shift of focus to robotics is considered a strategic move.

Optimus and Future Plans

Elon Musk shared quite optimistic plans for the Optimus robot. According to Musk, 80% of Tesla's future value will come from Optimus. It was stated that the long-term goal for the Fremont facility is to produce one million robots per year. However, it is known that the bipedal robot still faces challenges in walking independently and completing tasks without human intervention.

Musk added that he plans to introduce the third-generation Optimus, described as "the first model designed for mass production," within this quarter. What the robot will be capable of in real-world conditions remains uncertain.

Market Reaction and Roadmap

Despite challenges in the financial outlook, Tesla shares showed some resilience. The stock reached an all-time high of nearly $500 last month but retreated to around $422 following the fourth-quarter announcements. Investors continue to support Tesla's promise of transforming from an automaker into an AI and robotics company.

This transition process is seen as a critical turning point for a company that has played a pioneering role in the automotive industry. The company's decision to focus on the Optimus robot and transition to an autonomous future shows parallels with other autonomous projects in the sector. Similarly, Waymo's robotaxi project also highlights the challenges and points of caution in the development process of autonomous technologies.