"However, the financial results were overshadowed by a major reveal that came during the earnings conference call: Tesla was killing off half of the models it produces. Model S and Model X production will end starting next quarter, with the wind-down completed later this year. The Fremont factory lines where they are produced will be repurposed for Optimus humanoid robots. Tesla is aiming for eventual annual capacity of 1 million units."
"The Model S and X - priced well above $90,000 - were Tesla's most expensive EVs and only accounted for roughly 3% of deliveries. The S, X, and Cybertruck totaled just 50,850 deliveries in 2025, a steep 40% drop from a year ago. Its more affordable Model 3 and Y dominated with 1.585 million units, but deliveries were down about 7%."
Tesla reported a 3% revenue decline in 2025 to $94.8 billion, marking the first annual revenue drop. EV production fell about 7% to 1.65 million vehicles and deliveries dropped 8.6% to roughly 1.64 million units. Sales fell in three of the last four quarters, with Q3 buoyed by buyers claiming expiring federal EV tax credits. Quarterly revenue was $24.9 billion while adjusted earnings were $0.50 per share. Tesla will end Model S and Model X production next quarter and repurpose Fremont lines for Optimus humanoid robots, targeting eventual annual capacity of 1 million units. Model 3 and Y remained the volume drivers but also declined, and high-end model deliveries plunged amid intensifying competition.
Read at 24/7 Wall St.
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