The announcement that Tesla will stop manufacturing the Model S and Model X. Redirecting its resources towards humanoid robotics has marked a true turning point in Elon Musk's company's strategy. The two models that brought the brand worldwide fame as the benchmark for premium electric cars are now giving way to Optimus, the humanoid robot with which Tesla aims to lead the way in so-called "physical AI."
This movement, which is framed within a context of falling profits, competitive pressure and changes in demand The electric vehicle revolution redefines Tesla's nature: from a car manufacturer to a technology company focused on artificial intelligence, automation, and autonomous vehicles. This is no small shift, and its impact on the market and the future evolution of mobility is being closely watched in Europe and Spain.
Goodbye to the Model S and X: the end of an era at Tesla
Elon Musk himself confirmed that Production of the Model S and Model X will be drastically reduced during the next quarter until they come to a complete stop. Those who want to get their hands on one of these high-end sedans or SUVs should hurry, because Tesla doesn't plan to keep them in the catalog in the medium term, although it has promised to continue offering support and service to owners as long as they keep their vehicles.
Los Model S (released in 2012) and Model X (2015) They were responsible for demonstrating that an electric car could be fast, technologically advanced, and desirable, and they helped make electric vehicles no longer something exotic. However, over the years they have been relegated to a more marginal role compared to the Model 3 and Model Y, much more affordable and much better sold worldwide, including in Europe.
In markets like Spain, where price remains a clear barrier to electric car adoption, these luxury models, with prices that They were around or exceeded $95.000-$100.000 (and their equivalent prices in euros including taxes), only fit into very specific niches. Tesla's main focus has long been on the mid-range and high-end segments, but not ultra-luxury, and the company has decided to cut its losses with two products that contributed to its image but had little sales traction.
Production had already shown signs of slowing down. In recent years, the The number of Model S and Model X units manufactured and delivered was significantly lower to those of its more economical siblings, in a context where production costs and the demands of investment in new technologies were increasingly squeezing margins.
The Fremont factory is transformed: from luxury cars to Optimus robots
The core of the change lies in the plant of Fremont, Calif.Tesla has announced that it will dismantle the Model S and X assembly lines to convert the factory into a center dedicated almost exclusively to the production of new vehicles. large-scale production of Optimus humanoid robots.
Optimus is Musk's flagship project in the field of robotics. The company has already shown prototypes and internal demonstrations, but the plan now is to take the leap to a mass industrial manufacturingwith the aim of enabling these robots to work in industrial environments and, in the long term, in logistics, services, or even domestic useThe Fremont factory will, in practice, become the real laboratory where that ambition is put to the test.
According to Musk, the next few months will be key because a new iteration, popularly known as “Optimus 3”This model aims to stand out for its learning capacity: the idea is that it can acquire skills by watching videos or demonstrations, relying on the same advances in computer vision and neural networks that Tesla uses for autonomous driving.
This strategy falls within what the CEO himself and some in the industry describe as “Physical AI”Artificial intelligence applied to the real world, beyond chatbots or on-screen software. It is, in theory, the next step after vehicle automation, and it makes Tesla a direct player in the race for humanoid robots, an area where companies from the United States, Asia, and Europe are investing ever-increasing amounts.
From car manufacturer to AI and robotaxis company
The reorientation is not limited only to the Humanoid robotsTesla has long argued that its true value lies in the autonomous driving software, robotaxis and AImore than just selling cars. The announcement of the Model S and X's discontinuation came during the same call with analysts in which Musk insisted that the company's future lies in the fully autonomous vehicles and by fleets of robotaxis that can operate without a driver.
In the United States, Tesla has already begun to test robotaxi services in cities like Austin and plans to expand to other key metropolitan areas. Musk's idea is that these services will be built on the same technological platform that powers Optimus: AI algorithms, advanced perception systems, and data centers designed to process massive volumes of information in real time.
In Europe, the expansion of these types of services will almost certainly be slower due to the much stricter regulations regarding security and data protectionHowever, Tesla's move also puts pressure on European authorities and traditional manufacturers on the continent, who are already working on their own advanced automation and shared mobility projects.
Musk has been clear in his messages to investors: things are happening “very, very large investments” in capital to sustain this entire transition. The stated goal is to build a company where the bulk of the value comes from applied AI and recurring services, and not so much from the mere sale of vehicles, a more cyclical business model dependent on the economic context.
Million-dollar investment in xAI and Grok's role
One of the pillars of this change is the close relationship between Tesla and xAITesla, the artificial intelligence company also founded by Elon Musk. Despite some shareholders expressing reservations and even non-bindingly rejecting certain proposals, Tesla has announced an investment of around $2.000 billion in xAI, accompanied by a “framework agreement” to coordinate joint projects.
That agreement opens the door for the technology developed by xAI to be integrate more deeply into Tesla vehicles, robots, and servicesOne example that is already visible is the chatbot. Grokwhich the company has begun to incorporate into some cars as an advanced assistant, capable of answering questions, helping with navigation or managing vehicle functions using natural language.
In addition, Tesla supplies xAI Megapack batteries to power your data centersThis strengthens the collaborative relationship between the two companies. The plan involves using the same infrastructure to train AI models that will then be applied to... Optimus robot, autonomous driving and other automation projects that the company may launch in the coming years.
For Musk, it all fits within his so-called Master Plan, which aims to take artificial intelligence beyond the screen and into the real world. In this sense, integration with xAI is key to giving both cars and humanoid robots a "brain," something that, if successful, could have a global impact, including on Tesla's European plants and the rollout of its products in the European Union.
A challenging year: declining sales and competitive pressure
The shift towards AI and robotics comes after a challenging financial period. In the last fiscal year, Tesla reported a decline of nearly 3% in revenue compared to the previous year, and an even sharper drop in profits. The operating margin decreased and the Net profit was cut by almost half, reflecting the pressure on costs, price reductions and heavy investments.
In terms of global deliveries, the company remained around 1,63-1,64 million vehiclesThis represents a setback compared to previous years. Although it remains one of the world's largest electric car manufacturers, it is no longer growing at the rate many investors had hoped, while rivals such as BYD and other Chinese manufacturers They are rapidly increasing their presence in international markets, including Europe.
In the United States, a drop in sales of around 7% In some recent periods, the company has had to resort to price cuts on models like the Model S and Model X to try to revive demand. At the same time, it has faced criticism for political issues linked to Musk, in addition to the impact of delays and problems associated with projects like the Cybertruck.
This combination of factors has fueled the feeling that Tesla was in a certain phase of stagnation with their electric carsespecially in the higher price segments. Hence, the decision to discontinue the Model S and X, while striking, fits with a strategy of prioritizing products and services with greater long-term growth potential.
How Tesla's pivot fits into Europe and the Spanish market
From a European perspective, Tesla's new direction raises several questions. On the one hand, the brand will continue to be a benchmark in the electric car market Thanks to the weight of the Model 3 and Model Y, which are the ones that really compete in volume with the proposals of German, French, Korean or Chinese manufacturers in the Old Continent.
On the other hand, the focus on humanoid robotics and AI services This opens the door for Tesla to engage with Europe more as a technology provider than simply as a car manufacturer. The EU, which has already approved a specific regulatory framework for artificial intelligence, will have to deal with products like Optimus and robotaxis from the dual perspectives of innovation and safety.
In countries like Spain, where the electrification of the vehicle fleet is progressing, albeit somewhat slowly, the immediate impact of discontinuing the Model S and Model X will be limited, as both models played a negligible role in terms of registrations. The truly relevant question will be whether Tesla is shifting part of its focus on AI and automation to the factories and centers that it may have or open in European territory.
Furthermore, this move could accelerate decisions by other manufacturers on the continent, many of whom are already involved in autonomous driving and advanced industrial robot projects, to strengthen their AI and robotics departmentsThe goal will be to keep pace with Tesla, which, despite facing challenges, continues to set the pace in some of the key debates about the future of mobility and automation.
Overall, the shift from focusing less on luxury cars and more on humanoid robotics and artificial intelligence reflects how Tesla is trying to reinvent itself before the market straitjacks it. as just another car manufacturer. The discontinuation of the Model S and X leaves a symbolic void, but, in return, the company is betting on becoming one of the main players in the next great technological battle: bringing AI from the digital world to the physical world, with implications that will go far beyond the automotive sector in the United States, Europe, and the rest of the world.
