Tesla ending Models S and X production (cnbc.com)

Article summary

Tesla is ending production of its Model S and X vehicles, with CEO Elon Musk stating that it's time to bring the programs to an end. The company will use the factory in Fremont, California, to build Optimus humanoid robots instead. Tesla's Model 3 and Y vehicles accounted for 97% of the company's deliveries last year, making the S and X less necessary. The decision comes as Tesla reported its first annual revenue decline on record.

Main themes

• Tesla production changes
• Electric vehicle market
• Automotive industry trends
• Robotics and AI development
• Business strategy and decision-making

What commenters say

• Tesla's decision to end Model S and X production is a reasonable business move, given the popularity of the Model 3 and Y and the declining sales of the older models.
• The discontinuation of the Model S and X is a sign of Tesla's struggles to compete in the luxury car market and its failure to innovate and improve its products.
• The company's focus on robotics and AI development, including the Optimus robot, is a distraction from its core business and a potential waste of resources.
• The decision to end Model S and X production is not surprising, given the high production costs and low sales volume of these models, and it will allow Tesla to focus on more profitable and popular models.
• Tesla's move away from traditional car production and towards robotics and AI development is a bold and potentially visionary strategy that could pay off in the long run.
• The lack of a clear plan for new car models and the reliance on the Model 3 and Y is a concern for the company's future growth and competitiveness in the market.
• The comparison to other car manufacturers, such as Toyota and BMW, is not relevant, as Tesla is trying to disrupt the traditional automotive industry and create a new market for electric and autonomous vehicles.
• The decision to end Model S and X production is a sign of Tesla's inability to balance its ambitions with its resources and capabilities, and it may ultimately harm the company's reputation and sales.