The company will stop making the pioneering EVs in the second quarter of 2026, CEO Elon Musk announced Wednesday.

The company announced it was ending production of its higher-end Model S and Model Y, and turning that production space over to making humanoid robots.

The automaker also said it would invest $2 billion in xAI, the artificial intelligence company controlled by its C.E.O., Elon Musk, and stop making the two oldest cars in its lineup.

Tesla's annual profit plunged to its lowest level since the pandemic as it ceded the title of the world's biggest electric vehicle maker to a Chinese rival and boycotts hammered sales.

Telsa’s revenue and profits tumbled in the fourth quarter, capping off the most difficult year for the electric automaker since it became profitable six years ago.

By Chris Kirkham and Akash Sriram LOS ANGELES, Jan 28 (Reuters) - Tesla plans to more than double capital spending to a record high of more than $20 billion this year - but little of it will go to its traditional business of selling electric vehicles to human drivers.

As a result, total revenues for 2025 only fell by 3 percent. But Tesla saw a 38 percent drop in income from operations, and its expenses went up by 23 percent. As a result, the company’s once-envied profit margin was just 4.9 percent for the year, down from 7.2 percent last year. (In 2022, Tesla had a 23.8 percent profit margin.)