As Tesla Doubles Down on AI and Robots, EVs Look More Like a Side Hustle

Core Insights - Tesla is discontinuing its Model S sedan and Model X SUV, signaling a shift in focus towards robotics and AI technology [2][4] - The company is experiencing increased competition, having lost its title as the world's best-selling EV maker to BYD, which sold 2.26 million EVs compared to Tesla's 1.64 million in the previous year [3] - Tesla plans to invest over $20 billion in 2023 to transition from a hardware-centric automaker to a diversified technology firm, leveraging its strong cash position of $44 billion [3] Company Strategy - CEO Elon Musk indicated that Tesla is moving towards a future centered on autonomy, with plans to produce humanoid robots at its Fremont factory [3] - Analysts suggest that Tesla is at a pivotal moment, committing fully to a new vision that leaves no option for retreat [4] - The company is strengthening ties with Musk's other ventures, including a $2 billion investment in xAI, which is developing AI technologies [4] Market Position - Tesla's sales performance is declining relative to competitors, as evidenced by its loss of the top EV sales position to BYD and Volkswagen's success in Europe [3] - The shift in focus from traditional EVs to AI and robotics may redefine Tesla's market identity and investor perception [2][4]