TechCrunch Mobility: The great Tesla rebranding

In a dramatic shift, Tesla's CEO Elon Musk is redefining the company's identity, aiming to transform it from a mere electric vehicle manufacturer into a leader in AI and robotics. This evolution follows the acquisition of Solar City in 2016, where Musk began positioning Tesla as a sustainable energy powerhouse. However, the reality remains that the majority of Tesla's revenue is still derived from electric vehicle sales. Tesla's recent financial report reveals a staggering $94.8 billion in revenue for 2025, with $69.5 billion attributed to the sale and leasing of electric vehicles and regulatory credits. The remaining $25 billion comes from its energy generation and storage solutions, along with revenue from Superchargers and Full Self-Driving subscriptions. As EV sales have declined, so too has Tesla's overall financial health, with profits dropping 46% year-over-year. To counteract this downturn, Tesla is focusing on expanding its non-EV business sectors. The recent earnings report indicated a strategic pivot towards tangible actions rather than just discussions about AI and robotics. Musk has announced plans for a substantial capital expenditure increase in 2026, projecting to exceed $20 billion, which may push the company into negative cash flow. In a symbolic move, Tesla has decided to halt production of the Model S and Model X, which together only account for about 2% of its sales volume. Despite this being more of a symbolic gesture, it signifies a notable shift in Tesla's approach, especially considering the historic impact of the Model S on the automotive landscape since its debut in 2012. Looking forward, Tesla aims to fill the production gap left by these models with its Optimus humanoid robots, which will be manufactured at the Fremont factory. Additionally, Musk is set to expand Tesla's robotaxi operations into more cities by 2026, and there's talk of establishing a new factory to bolster chip supply. A standout initiative involves a planned $2 billion investment into Musk's other venture, xAI, which suggests a closer integration between the two companies. Moreover, there are discussions about a potential merger among three of Musk's enterprises: Tesla, SpaceX, and xAI. While Tesla grapples with decreasing sales, its smaller energy storage division has shown positive growth. In related news, Waymo appears to be actively pursuing fundraising efforts, with reports indicating a potential $15 billion round led by parent company Alphabet, attracting considerable interest from other investors. In the autonomous vehicle sector, Waabi secured $750 million in a Series C funding round, aiming to deploy a fleet of 25,000 robotaxis on Uber's platform. This partnership represents a significant leap for Waabi, which initially focused on self-driving trucks but is now looking to diversify its technology across different segments. Other notable developments include Gatik AI's contract for driverless transport worth $600 million over five years, and Luminar's lidar business being sold for $33 million. Additionally, Rad Power Bikes has reached an agreement to be acquired for approximately $13.2 million amid its bankruptcy proceedings. As Tesla continues to explore its identity beyond traditional electric vehicles, the automotive industry watches closely, anticipating how these changes will shape the future of transport.