"Tesla's profit dropped 46% year over year, the company revealed in its earnings update Wednesday evening. That was not exactly a surprise in fact, it was better than most analysts had expected. Tesla had already reported sales for the quarter, which showed the continuation of a slump that stretched through much of the year. More revenue from other parts of the company, like a growing energy storage business, haven't made up for the fact that Tesla's not selling as many cars as it used to."
"But the company continues to maintain that it's in the process of transitioning from being a car company to a "physical AI company," with value based on its self-driving vehicle technology, its robotaxi service and, eventually, humanoid robots. As part of that pivot, Tesla is discontinuing its higher-end Model S and Model X vehicles. The vehicles were already made in much smaller numbers than the more affordable Models 3 and Y, but had symbolic value."
Tesla reported a 46% year-over-year profit decline as vehicle sales continued a prolonged slump. Revenue growth from energy storage and other segments has not offset weaker car deliveries. Tesla lost its position as the global EV sales leader amid a souring brand reputation and intensifying competition, particularly from China. The company is repositioning toward a "physical AI company" model that prioritizes self-driving technology, robotaxi services, and future humanoid robots. Higher-end Model S and Model X production will be discontinued while development focuses on the Cybercab, a steering-wheel‑less vehicle designed for autonomous robotaxi operation.
Read at www.npr.org
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