Tesla’s annual profit plunged to its lowest level since the pandemic as it ceded the title of the world’s biggest electric vehicle maker to a Chinese rival and boycotts hammered sales. The EV company run by Elon Musk reported Wednesday that net income last year dropped 46% to $3.

The company will stop making the pioneering EVs in the second quarter of 2026, CEO Elon Musk announced Wednesday.

The Fremont factory will still manufacture Model 3 and Y, but the space where Model S and X are made will instead focus on mass production of Tesla's Gen 3 Optimus robots.

Tesla’s annual profit plunged to its lowest level since the pandemic five years ago as it lost the title of the world’s biggest electric vehicle maker to a Chinese rival and boycotts hammered sales.

The Big Tech earnings reporting season kicked off this afternoon with Meta, Microsoft and Tesla releasing quarterly results after the closing bell. Follow our live coverage here.

The investment in xAI is expected to support Tesla’s self-driving technology development and broader AI integration across its products. The

Elon Musk said Tesla Inc. needs to build and operate what he is calling a “TeraFab” to manufacture semiconductors, a massive undertaking that will cost billions of dollars and mark another expansion beyond what had been the company’s core electric vehicle business.