Tesla to end Model S and Model X production, shifting focus to future businesses
Tesla has discontinued production of the Model S and Model X, respectively, after 14 and 11. The company announced that it would focus on Full Self-Driving (FSD), its robotaxi (Cybercab), energy storage, and humanoid robots (Optimus).
Tesla has discontinued production of the Model S. The Model S closed out a production history of 14, while the Model X did so after 11. The company announced that it had formalized the end of production for these vehicles.
Tesla identified Full Self-Driving (FSD) and Cybercab, its robotaxi, as core businesses for the future. The company also highlighted its energy storage business and Optimus, its humanoid robot project. It said it would reorganize its strategy around these businesses.
The company said it was seeing tangible momentum in its new business areas. It cited growth in subscribers to its subscription-based services and the generation of related revenue. The company said revenue streams were taking shape in these businesses.
Some market participants pointed to valuation and execution risks. The report stated that the price-to-earnings ratio was ~370times (PER, how many times earnings the share price represents). It said this had led to differing views among analysts.
The report also cited the upcoming IPO schedule as a factor. Specifically, it added that SpaceX’s IPO could affect future capital flows. It noted that the company and investors were watching for changes in capital allocation.
Sources: Investing.com
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