Musk stated that the Optimus robot, Robotaxis, and FSD will be Tesla’s key value drivers “beyond cars” in the future.
While its CEO has become a polarizing figure in the past 10 years, you can’t deny that the Tesla Model S and Model Y have been game changers. They were the first truly long-range electric vehicles in the U.S. and popularized the idea of owning an EV. (The Model S was the 2013 MotorTrend Car of the Year, the first-ever EV to win the award.) With more than 14 years of continuous production of the luxury electric sedan and 11 years of its luxury electric SUV, Elon Musk has determined that it’s time to send both off into the sunset in favor of producing the Optimus humanoid robot. This news of the cancellations came as the brand announced its first annual revenue decline since its inception.
The Model 3 and Model Y accounted for around 97 percent of Tesla’s deliveries during 2025, and automotive revenue had fallen by 11 percent versus Q3 while total revenue was down by just 3 percent. Year-over-year (YoY), Tesla’s automotive revenues were down 10 percent from 2024 and total revenues down by 3 percent and gross profit down by 2 percent. These lower earnings were punctuated by a 3 percent reduction of Model 3 and Y production, “other models” dropping by 48 percent, and deliveries falling by 14 percent for 3 and Y and “others” by 51 percent YoY.
Which drives us (no pun) to the biggest news from Tesla’s Q4 2025 earnings call. Musk made what can be seen as the biggest announcement during his time as CEO of Tesla. “It’s time to basically bring the Model S and X programs to an end with an honorable discharge,” he stated during the call. “If you’re interested in buying a Model S and X, now would be the time to order it.” Well, so long as you live in the U.S., that is. Tesla has been quietly phasing out the ability to order them in China and Europe since early in 2025.
As Tesla’s larger electric luxury vehicles exit, Optimus will replace the production of vehicles at Tesla’s Freemont plant. Keep in mind that Optimus is still in its R&D phase, which Musk admitted while on the call, and has been limited to “basic tasks in the factory” that are not of any material use. On top of Optimus, Musk stated that robotaxis and FSD will be Tesla’s key value drivers “beyond cars” and is still