Tesla kills Models S and X to build humanoid robots instead

In a surprising turn of events, Tesla has announced a significant shift in its business strategy after reporting disappointing financial results for 2025. The company's profits have plummeted nearly 50%, and this marks the first time in its history that revenue has declined year-over-year. Various factors are contributing to these challenges, including CEO Elon Musk's controversial political engagements and the backlash from his involvement with AI-generated content that has drawn criticism. For many consumers, the issues surrounding the company's leadership might be overshadowed by more practical concerns. Tesla's vehicle lineup is currently limited and aging, which raises serious questions about safety and reliability. In light of these challenges, the company revealed during a recent investor call that it will be discontinuing its Model S and Model X cars to redirect resources towards developing humanoid robots. Musk's attention has shifted from traditional car manufacturing to ambitious projects in autonomous driving and robotics. The allure of autonomous technology, particularly following the advancements made by companies like Waymo, has captivated Musk. He has previously promised investors that their vehicles would soon transform into profitable assets, allowing them to generate income passively. This new direction also includes a transition to a subscription model for Tesla's Full Self-Driving (FSD) feature, set to launch for all new vehicles purchased from mid-February. The company will phase out its Autopilot system, which has been less advanced. Tesla's ultimate vision is to create two-seat robotaxis that operate without human intervention, although this technology is still in the experimental phase, currently facing hurdles in real-world testing in Austin, Texas.