Dorothy

Tesla plans to cease production of the Model S and Model X in the second quarter of 2026, a decision announced by CEO Elon Musk during an earnings call, according to The Verge and TechCrunch. The move marks the end of Tesla’s two original flagship electric vehicles, with no prior public warning given to consumers or investors. While the automaker has not provided detailed reasoning, Musk cited a strategic reallocation of resources toward future projects, including robotics, as reported by The Verge. Meanwhile, Ars Technica notes that Tesla’s financial performance has weakened significantly, with profits falling 46% in 2024 and sales declining 8.6%, with over half of its profit coming from regulatory emissions credits rather than vehicle sales. Separately, Microsoft reported a $7.6 billion gain from its investment in OpenAI during the last quarter, according to TechCrunch, highlighting the financial upside of its AI partnership. In a related but distinct development, Ars Technica reports growing user interest in the open-source AI chatbot Moltbot, which offers always-on functionality via WhatsApp but requires extensive access to personal data—raising privacy concerns. While The Verge and TechCrunch frame Tesla’s decision as a bold strategic pivot, Ars Technica emphasizes the broader context of declining profitability and reliance on non-vehicle revenue streams. No source disputes the core facts of Tesla’s discontinuation plan or Microsoft’s financial gain, but interpretations vary: some highlight innovation and future focus, while others underscore operational challenges and financial vulnerability.