Tesla confirms it will end Model S and Model X production as BYD's rapid rise reshapes the global electric vehicle market.

Tesla is to axe production of two electric vehicle (EV) models as part of a shift towards robotics after the company reported its first ever decline in annual revenue. Tesla revealed that investment would more than double this year to $20bn (£14.

The company's EVs are profitable and command a formidable market presence with a value "kicker" potentially coming from robotaxis and unsupervised full-self driving; its rivals are not in the same position.

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.

Tesla's decision to kill the Model S and X signals the end of an era, and a clear pivot toward robotics, autonomy, and higher-margin future technologies.

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.

Boston Dynamics' Atlas appears to have an edge over Tesla's Optimus.

The Asian electric vehicle manufacturer records a nearly 28% year-on-year increase in sales to 2.26 million units in 2025, surpassing Tesla, whose deliveries fall 8.6% to 1.64 million vehicles.