Tesla Shifts From Cars to Chips: Revenue Down 10 Percent

“The vast majority of miles traveled will be autonomous in the future.”

The Model S deserved better than this.

There’s a consensus forming that the company’s auto manufacturing business alone cannot justify its mammoth $1.56 trillion market capitalization.

In a surprising turn of events, Tesla is killing off two of its car models to focus on making humanoid robots that are set to be released in 2027.

Car models get canceled all of the time, even the iconic and successful ones. But for electric-vehicle fans, it's not hard to have mixed feelings about the demise of the Tesla Model S. (And, to a lesser extent, the Model X.)

Tesla plans to end Model S and X production and invest $20 billion in autonomy, robotics, and energy, reshaping how analysts frame its valuation.

On an earnings call January 28, Tesla CEO Elon Musk told investors the automaker will “basically stop production of Model S and X next quarter.”