In a recent earnings call, Elon Musk officially announced that Tesla will cease production of the Model S and Model X, marking an end for these luxury models. This decision comes at the request of shareholders, as Tesla aims to focus on future products with greater potential.
In addition to ceasing production of the Model S and Model X, Tesla has announced that it will sign a Framework Agreement with Musk’s artificial intelligence company, xAI, aiming to deepen their collaboration. This undoubtedly opens up more possibilities for Tesla’s advancements in self-driving technology and robotics. Currently, Tesla plans to unveil its third-generation Optimus robot within this quarter and showcase the long-awaited Roadster in April.
According to the financial report, Tesla’s revenue for this quarter reached $24.9 billion. Although it fell short of market expectations, its adjusted earnings per share stood at $0.50, surpassing the market’s forecast. Following this news, Tesla’s stock saw a 3% increase in after-hours trading.
During the conference, Musk stated that 2025 will be a crucial year for Tesla, as they move further towards their mission and transition from being a hardware-centric company to one focused on artificial intelligence. He emphasized that securing a steady supply of chips is essential for Tesla’s success, mentioning that while the chip supply situation will be favorable over the next three years, it is vital to seek a stable supply chain in the long term to mitigate potential geopolitical impacts.
When discussing Tesla’s future plans, Musk mentioned that the company is entering a Investment Stage, anticipating over $20 billion in capital expenditures by 2026. Tesla’s CFO Vaibhav Taneja emphasized that this substantial capital expenditure won’t just be limited to traditional vehicle models, but will also pave the way for robots, production equipment, and updated self-driving technology.
At the same time, Musk indicated that the Robotaxi fleet has officially launched in Austin and the San Francisco Bay Area, with over 500 vehicles currently in service, and it’s expected to double in the coming months. Despite facing competitive pressures in the global electric vehicle market, Tesla’s electric vehicle business is still facing challenges, as sales of the Model 3 and Model Y globally have slightly tapered off.
Additionally, reports indicate that Tesla’s Fully Autonomous Driving program currently has 1.1 million users subscribed, and Musk has also stated that this plan will shift towards a subscription-based service. Future changes will further attract more consumers to engage.
Finally, Tesla’s most promising product—the Megapack energy storage system—achieved over $3.8 billion in revenue in the fourth quarter, reflecting a 25% year-on-year growth. In the future, Tesla will focus on expanding its energy products and continuously enhancing its technological capabilities to prepare for the upcoming demand.
