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Tesla Retires Model S and X as It Pivots to AI, Robotaxis and Energy

Executives map roughly $20 billion of 2026 investment to repurpose capacity for Cybercab robotaxis plus Optimus.

Overview

  • Tesla says about 500 robotaxis are operating in Austin and the San Francisco Bay Area, with seven new operating areas planned in 2026.
  • The company reports 1.1 million paying Full Self-Driving subscribers, a 38% year-over-year increase.
  • Energy storage deployments reached 14.2 GWh in Q4 and 46.7 GWh for the full year, lifting the segment’s share to 13% of 2025 revenue.
  • CFO Vaibhav Taneja warns of 2026 margin compression in energy and storage due to low-cost competition, policy uncertainty and tariffs, even as Megapack 3 and the 20 MWh Megablock roll out.
  • Tesla says its initial 7 GWh U.S. LFP cell line and a new Texas lithium refinery targeting about 30 GWh are in early ramp, alongside plans for additional Megafactory capacity.