Tesla is saying goodbye to the cars that put it on the map. The company plans to stop making the Model S and Model X. These were the luxury electric vehicles that made Tesla famous, but CEO Elon Musk is ready to move on. He says the future isn’t about regular cars anymore. It is about robots and taxis that drive themselves.
This big change comes at a tough time for the carmaker. Sales aren’t what they used to be, and profits have taken a serious hit. For nine out of the last ten quarters, Tesla’s earnings have dropped.
In fact, the money the company made last year was only 30% of what it made back in its peak year of 2022. Because of these shrinking numbers, Musk is pivoting the business in a totally new direction.
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Instead of keeping the older luxury models alive, Tesla will pour its energy into building humanoid robots and expanding a new “robotaxi” service. Musk is betting heavily on a vehicle called the Cybercab. This is a small, two-seat car that looks very different from what you see on the road today. It doesn’t even have a steering wheel or pedals because a human isn’t supposed to drive it at all.
Musk seems very confident about this gamble.
On Wednesday, he predicted that the Cybercab will eventually sell way more than all of Tesla’s other vehicles combined.
It is a bold claim, especially since the company is walking away from the high-end cars that defined its brand for over a decade. Now, the auto world will have to wait and see if trading luxury sedans for robot drivers will actually pay off.
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