Tesla Pivot to Autonomy Sends Shares Sliding Amid Mixed Q4 Results
Tesla shares fell 3.36% to $416.98 after reporting a 3% year-over-year revenue decline and 60% EPS plunge. The automaker will discontinue Model S/X production next quarter as it shifts focus toward autonomous vehicles and robotics.
Full self-driving subscriptions now reach 1.1 million active users (up 38% YoY), while Cybercab production begins in April. Capital expenditures are projected to more than double to $20 billion by 2026.
Elon Musk emphasized Tesla's evolution beyond automotive manufacturing: "We're really moving into a future that is based on autonomy." The strategic pivot comes as automotive revenue dropped 11% amid 16% lower deliveries.