Elon Musk pivots Tesla to robotics and AI as car business flails

The Guardian - World NewsCenter-LeftEN 3 min read 100% complete by Nick Robins-EarlyJanuary 28, 2026 at 11:22 PM

AI Summary

medium article 3 min

Tesla CEO Elon Musk announced that the company will discontinue production of its Model X SUV and Model S full-size sedan, citing a shift towards robotics and AI as the primary focus. The Fremont factory, where these models are produced, will be converted to produce Tesla's upcoming Optimus robot. This pivot comes after Tesla reported slumping vehicle sales and declining revenue in its latest quarterly earnings report, with total automotive revenues dropping 11% year-over-year. Musk emphasized a transition from a hardware-centric business to a physical AI company, with the goal of creating an "unparalleled future growth" through AI-driven projects like Optimus consumer robots and self-driving Robotaxis. Production of Optimus is expected to begin before the end of 2026, with public sales planned for 2027.

Key Entities & Roles

Key Player Opposition Context

Europe 35% Wall Street ×240% xAI 50% Fremont, California 50% Model X ×270% Model S ×370% Optimus ×475% Elon Musk ×895% Tesla ×1195%

Keywords

tesla 100% elon musk 90% robotics 80% artificial intelligence 80% optimus robot 70% revenue decline 60% electric vehicles 60% model x 50% model s 50% xai 40%

Sentiment Analysis

Neutral

Score: -0.15

Source Transparency

Source

The Guardian - World News

Political Lean

Center-Left (-0.40)

Far LeftCenterFar Right

Classification Confidence

90%

This article was automatically classified using rule-based analysis. The political bias score ranges from -1 (far left) to +1 (far right).

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