Tesla CEO Elon Musk has introduced the phased discontinuation of Mannequin S and Mannequin X electrical automobile manufacturing, beginning subsequent quarter. The California manufacturing unit will likely be retooled for the manufacturing of Optimus humanoid robots.
Tesla CEO Elon Musk introduced on Wednesday that the corporate will start phasing out its Mannequin S and Mannequin X electrical automobiles this 12 months and retool its California manufacturing unit to provide humanoid robots, UNN experiences just about NBC Information.
Particulars
This announcement marks the tip of an period. These two fashions – launched in 2012 and 2015, respectively – helped convey electrical automobiles into the mainstream. In addition they contributed to Tesla's transformation from a startup into the world's most beneficial automaker.
Musk introduced the phase-out throughout a convention name with traders and Wall Avenue analysts, stating that it’s a part of his efforts to restructure Tesla's operations to give attention to robotaxis and humanoid robots.
"We count on to wind down S and X manufacturing within the subsequent quarter and successfully cease it," he mentioned, including that the corporate will proceed to help these automobiles so long as individuals are utilizing them.
"It's a bit of unhappy, nevertheless it's time to finish the S and X packages, and that's a part of our total transition to an autonomous future," he mentioned.
Musk introduced the change concurrently with the discharge of Tesla's monetary outcomes for the final three months of final 12 months. The corporate exceeded analysts' expectations for revenue however confirmed indicators of weak point: complete income final 12 months decreased by 3% in comparison with 2024 income.
The inventory worth rose by roughly 2% in after-hours buying and selling.
Tesla's automobile gross sales have usually suffered over the previous 12 months as clients reacted to Musk's involvement in right-wing politics, and opponents from China and different international locations offered drivers worldwide with extra selections.
Musk acknowledged that Tesla will retool its manufacturing unit in Fremont, California, from an automotive plant to a manufacturing website for its deliberate Optimus robotic line. These robots are usually not but on the market.
Musk: Tesla's future relies on Optimus robots, not electrical cars02.09.25, 15:13 • 4835 views
Addition
The Mannequin S appeared at a time when electrical automobiles occupied a tiny area of interest within the automotive market, and plenty of trade analysts doubted whether or not there could be enough demand to help the manufacturing of completely electrical automobiles. However the Mannequin S quickly topped proprietor satisfaction surveys and gained a loyal following. Just a few years later, the Mannequin X, a crossover, appeared, which initially acquired unfavourable critiques for reliability.
In 2023, Tesla lowered costs for each the Mannequin S and Mannequin X in an effort to spice up demand.