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Elon Musk Shifts Tesla's Focus from Cars to Humanoid Robots

KVIA•Thursday, January 29, 2026 at 1:25 PM•CNN Newsource

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AI Summary

Tesla, once a leader in the electric vehicle market, is now facing significant challenges, including a 9% drop in EV sales in 2025 and increasing competition, particularly from Chinese manufacturers. In response, CEO Elon Musk announced a bold pivot during a recent earnings call, stating that Tesla will cease production of its Model S and Model X vehicles to focus on manufacturing humanoid robots, specifically the Optimus model. Musk envisions these robots performing various tasks, from household chores to complex surgeries, and aims to produce one million units annually. However, experts caution that the humanoid robot market is highly competitive, with over 90 companies already involved, and achieving Musk's ambitious goals may take much longer than anticipated.

Key Details: • Tesla plans to convert Model S and X production space into an Optimus robot factory. • Musk aims to produce 1 million Optimus robots annually within the next decade. • The humanoid robot market could be worth between $370 billion and $5 trillion by 2050. • Tesla's initial production goal for Optimus was 5,000 units by 2025, which has since been reduced.

technology electric-vehicles tesla elon musk humanoid-robots

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