CEO Elon Musk says the company will close down production of two older car models, S and X, and convert the Fremont factory to produce its Optimus robots instead.

Tesla expects to more than double capital spending in 2026 as it invests heavily in robotics and driverless technology.

Instead of rolling out new car models, Musk is also betting that Tesla’s future is providing robotaxis as a service. It stands to reason why the company needs to find a new growth area. The US giant lost its crown as the world’s top-selling EV brand to China’s BYD in 2025,

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.