"Tesla is making another leap to shed its EV maker title and transform into a full-fledged physical AI outfit. The theme of Wednesday's fourth-quarter earnings call heavily centered on how Tesla is investing in its future as an AI and robotics company - a narrative CEO Elon Musk has pushed for some time now. The bets included: a major investment in Musk's xAI, updates on the Optimus humanoid robot, and a renewed push for in-house chipmaking."
"Meanwhile, Tesla's automotive segment took a back seat: Musk said he's killing the Model S and Model X to free up room for humanoid robot production. And while Tesla's energy and "services" revenue jumped 25% and 18%, respectively, auto revenue fell 11% year-over-year - a clear indication that the quarter's growth came from everywhere but its core EV business. "We've updated the Tesla mission to amazing abundance, and this is an attempt to send a message of optimism about the future," Musk said during the call."
Tesla is shifting from an electric vehicle maker to a physical AI and robotics company, prioritizing investments in AI, robotics, and chipmaking. Leadership plans include a projected $20 billion investment and a $2 billion contribution to xAI to deepen collaboration and compute capabilities. The Optimus humanoid robot received updates and in-house chip development was renewed. Automotive revenue fell 11% year-over-year while energy and services revenue rose 25% and 18%, respectively. Elon Musk announced discontinuing the Model S and Model X to make room for humanoid robot production and updated the company mission to "amazing abundance."
Read at Business Insider
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