In a significant shift in strategy, Tesla has announced the discontinuation of its Model S and Model X electric vehicles. CEO Elon Musk stated that the production lines at the Fremont factory, which previously focused on these models, will now be repurposed to manufacture Optimus humanoid robots. This decision comes as Tesla experiences its first decline in annual revenue, and the company pivots towards robotics and artificial intelligence. Musk emphasized that this move is crucial for the future growth of Tesla, alongside a planned investment of $2 billion in xAI, an artificial intelligence company linked to his ventures. As part of this transition, Tesla is embarking on a $20 billion capital spending spree aimed at developing a new business model centered around technology and automation, marking a decisive turn from traditional electric vehicles to a more technology-driven future.