Tesla Discontinues Iconic Model S and Model X to Pursue AI and Robotics Ambitions
In a major strategic announcement, Tesla CEO Elon Musk has confirmed that the electric vehicle giant will cease production of two of its most renowned and longstanding car models. The Tesla Model S and Model X are being discontinued as the company pivots its focus and resources decisively towards artificial intelligence and advanced robotics development.
Factory Conversion for Humanoid Robot Production
The Fremont factory in California, which has historically been used for manufacturing the Model S and Model X, will undergo a significant transformation. It is set to be repurposed to manufacture Tesla's highly anticipated humanoid robot, named Optimus. This move underscores Tesla's commitment to reallocating its industrial capacity towards what Musk describes as the future core of the company.
Musk's Vision: Optimus as a Trillion-Dollar Game Changer
Elon Musk has articulated an extraordinarily ambitious vision for the Optimus robot, characterising it as potentially the biggest product of all time. He has made bold predictions about its economic impact, suggesting it could become an infinite money glitch for Tesla. Musk projects that Optimus and related AI robotics ventures could contribute up to 80 per cent of Tesla's overall value in the coming decades.
This strategic shift is part of a long-term plan aiming for a staggering company valuation of approximately $25 trillion by the year 2050, a figure that would dwarf current market capitalisations in the technology and automotive sectors.
Expert Scepticism on Technological and Economic Feasibility
Despite Musk's enthusiastic projections, the announcement has been met with considerable scepticism from industry experts and roboticists. Notable figures such as Rodney Brooks, a professor emeritus at MIT and a foundational figure in robotics, have expressed serious doubts. Brooks and other critics argue that the concept of a general-purpose humanoid assistant, capable of performing a wide range of tasks reliably and economically, remains technologically unfeasible and economically impractical for the foreseeable future.
They suggest that such advanced, versatile robotics may not become a viable, mass-market reality for several decades, highlighting the significant engineering, software, and cost hurdles that must be overcome.
This decision marks a pivotal moment for Tesla, signalling a potential transition from being primarily an automotive manufacturer to a dominant player in the fields of artificial intelligence and advanced robotics, albeit amid ongoing debate about the realism of its timeline and goals.
