Tesla Shifts Gears: Model S and X Production to End

Tesla is making a significant change. They are stopping production of their Model S and Model X cars. These models have been around for a while, with the Model S debuting in 2012 and the Model X following in 2015. Now, Tesla plans to use the space where these cars are made to build something new: robots.

Elon Musk's Announcement

Elon Musk, the CEO of Tesla, announced this change soon. He told people on a call that if they want to buy a Model S or X, they should do it now. The company is focusing on other cars like the Model 3 and Model Y. These are more popular and cheaper. The Model 3 starts at about $37,000, and the Model Y is around $40,000.

The Rise of Optimus

Tesla is also working on a robot called Optimus. They plan to show the third version of this robot soon. Musk said they are setting up a new production line in Fremont, California. This line will make Optimus robots instead of cars. The company thinks they can make a million robots a year.

Expansion and Challenges

Tesla is also expecting to hire more people at the Fremont factory. They want to increase the number of robots they can make. This is a big shift for the company. They are moving away from traditional electric cars and towards robots and self-driving cars.

Tesla recently reported their first drop in yearly revenue. This shows that the company is facing some challenges. But they are still looking to the future. They believe that robots and self-driving cars are the next big thing. Only time will tell if this bet pays off.