Tesla pivots from electric vehicles to autonomous technology as Elon Musk announces the discontinuation of Model S and Model X to focus on mass-producing Optimus robots.

Elon Musk said Tesla Inc. needs to build and operate what he is calling a “TeraFab” to manufacture semiconductors, a massive undertaking that will cost billions of dollars and mark another expansion beyond what had been the company’s core electric vehicle business.

Shares of Tesla Inc. rose slightly in after-hours trading today after the company beat expectations in its fiscal fourth quarter and Chief Executive Officer Elon Musk announced major changes that will shift Tesla’s identity beyond car manufacturing.

The Austin push is planned for February, insiders told Business Insider. Tesla has been training Optimus in its Fremont factory for more than a year.

Tesla is confronting another high level departure from its manufacturing ranks, adding fresh urgency to concerns about a deepening leadership drain. The latest exit, involving a senior director overseeing vehicle production,

Prior to being appointed Director of Vehicle Operations and Engineering at Fremont in 2023, Bate was Director of Manufacturing for both Tesla’s Model 3 and Model Y vehicles. ・Electrek noted that the departure is the latest of a streak of exits at the EV giant.

Tesla CEO Elon Musk announced a $2B investment into xAI and the discontinuation of Model S and Model X in order to support Optimus robot production.

Tesla’s revenue fell about 3% to roughly $94.83 billion in 2025, marking the company’s first annual decline in revenue.