Overview
- Elon Musk said Model S and Model X production will wind down next quarter, with final runs completed and support for existing owners maintained.
- Tesla will retool the Fremont lines for its Optimus humanoid robots, targeting a long‑term capacity of up to 1 million units a year, with a Gen 3 reveal this quarter and initial production targeted by the end of 2026.
- Capital expenditures are set to rise to about $20 billion this year, including a $2 billion investment in Musk’s xAI to deepen AI collaboration.
- Tesla reported its first annual revenue decline to $94.8 billion in 2025, with automotive revenue down 11% year over year, while energy and services grew.
- Autonomy efforts include limited unsupervised robotaxi rides in Austin, planned expansion to seven U.S. markets in the first half of 2026, and a shift to subscription‑only Full Self‑Driving starting in February.