Tesla shifts focus from cars to robots and AI after profit drop

Tesla reported a significant drop in profits despite billions in investments. The company is discontinuing its flagship Model S and Model X electric vehicles as part of a major strategic shift.

The company is now prioritizing the development of its Optimus humanoid robot and artificial intelligence. Tesla confirmed it has invested $2 billion into Musk's xAI venture and reiterated that production of its planned "Cybercab" robotaxi will begin this year.

This move marks a sharp pivot away from Tesla's traditional automotive business toward robotics and AI, which Musk has framed as the company's future core focus.