Tesla used its Q4 2025 earnings call to lay out a decisive shift away from traditional car models and toward autonomy, AI, and robotics, with CEO Elon Musk calling 2026 “a new book” for the company.

Model S and Model X Discontinued

Tesla confirmed it will stop producing the Model S and Model X next quarter. The Fremont lines will be repurposed for Optimus humanoid robots, as features once unique to S and X have migrated to the Model 3 and Model Y. Tesla said its future focus is autonomy, not manually driven vehicles, while continuing long-term support for existing S and X owners.

Robotaxi Goes Fully Driverless in Austin

Musk said fully driverless Robotaxis, with no human inside and no chase cars, began operating in Austin on January 27. The rollout remains cautious, with autonomy scaling month by month. Tesla plans to expand Robotaxi city by city and state by state, citing regulation and weather as key constraints.

Upcoming Robotaxi markets include Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in the first half of 2026. Tesla aims for autonomous coverage across roughly a quarter to half of the US over time.

Tesla also disclosed FSD metrics for the first time:

  • 1.1 million active FSD vehicles
  • About 70 percent are outright purchases, 30 percent subscriptions
  • Roughly $32.7 million in monthly recurring revenue

Owners with AI4 hardware will be able to add or remove their cars from the Robotaxi fleet, creating a new income stream.

Optimus and AI Take Center Stage

Optimus Gen 3 is set to be unveiled in the coming months, with volume production expected before the end of 2026. Tesla targets eventual capacity of 1 million robots per year at Fremont. Musk described Optimus as a general-purpose robot and a major future driver of US GDP.

Tesla also plans a US-based “Terafab” to vertically integrate chip production and reduce geopolitical risk. AI5, targeted for 2027, aims for a 50x performance jump over AI4.

Financial Snapshot

  • Q4 revenue: $24.9 billion, down 3 percent year over year
  • GAAP net income: $0.8 billion
  • Energy revenue: up 27 percent year over year
  • Cash and investments: record $44.1 billion

CFO Vaibhav Taneja warned that 2026 will be CapEx-heavy, with about $20 billion planned to fund six major ramps, including Optimus, Robotaxi, Cybercab, Semi, lithium refining, and energy.

Tesla is exiting legacy premium cars and betting fully on autonomy, AI, and robots, with Robotaxis already live and Optimus positioned as the company’s long-term growth engine.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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