Tesla has reported a significant 46% decline in its 2025 annual profit, totaling $3.8 billion. This mark represents the company’s weakest financial performance in several years.
In a major strategic shift, Tesla announced it will cease production of its flagship Model S and Model X vehicles. The manufacturing lines previously used for these luxury electric cars will be repurposed to produce the Optimus humanoid robot.
Tesla aims to scale its robotics division rapidly, targeting a production capacity of up to 1 million Optimus units per year. According to reports from *TechCrunch and CNBC*, this pivot signals a massive move away from traditional premium vehicle segments to focus on AI and automation technology.
