Tesla accelerates its strategic pivot toward artificial intelligence and robotics. The company halted production of its flagship Model S and Model X vehicles.
Tesla will repurpose the Fremont factory capacity to produce the Optimus humanoid robot. This signals a shift from an EV maker to an AI and automation powerhouse.
The redirection requires a planned capital expenditure exceeding $20 billion in 2026. This funding supports projects including the Optimus robot and the Cybercab robotaxi.
The stock shows recent volatility as the market digests the strategy. Shares hit a 2026 low on February 4th amid a wider tech sell-off and cautious analyst sentiment.