Tesla is bidding adieu to its Model S sedan and Model X SUV as it shifts focus to robotics and AI. The company lost its title as the world’s best-selling EV maker to BYD, signaling a change in direction. CEO Elon Musk plans to spend over $20 billion this year on this new venture.

The Fremont factory that once produced Model S and X will now be making Optimus humanoid robots capable of performing tasks. Tesla is investing in xAI, known for developing AI chatbot Grok, and is considering a merger with SpaceX. Competition looms with Waabi, an autonomous trucking startup entering the robotaxi business.

Investors are questioning Tesla’s transformation from a carmaker to a tech firm, with analysts noting a decisive shift in focus. The company’s pivot to autonomy is backed by a strong balance sheet and cash flow. Musk’s total commitment to this vision signals a new era for Tesla, leaving behind its previous identity.

Read more at Yahoo Finance: As Tesla Doubles Down on AI and Robots, EVs Look More Like a Side Hustle