Tech
Tesla to End Model S and X Production, Focuses on Optimus Humanoid Robot
Tesla announced it will discontinue two of its electric vehicle models, the Model S sedan and Model X SUV, to prioritize production of its upcoming humanoid robot, Optimus. The decision marks a significant shift for Elon Musk’s company, signaling a growing focus on robotics alongside its electric vehicle business.
Musk made the announcement during a company earnings call on Wednesday, stating, “It’s time to basically bring the Model S and X programs to an end. We expect to wind down S and X production next quarter.” While the move may suggest Tesla is reducing its electric vehicle efforts, analysts stress that EVs will remain a vital part of the company’s operations, funding Musk’s larger ambitions in robotics and artificial intelligence.
Optimus, Tesla’s humanoid robot, has been in development for several years. Designed for use in Tesla factories and production lines, the robot weighs approximately 56 kilograms and stands around 170 centimeters tall. Musk has described Optimus as potentially “the biggest product of all time” and has indicated plans for mass production with a target price below $20,000 (€18,000).
Tesla aims to begin Optimus production before the end of 2026, with the robot expected to be available for public purchase in 2027, although previous release dates have shifted. The robot is being developed in tandem with Tesla’s growing artificial intelligence initiatives. Earlier this month, the company confirmed a $2 billion (€1.6 billion) investment into Musk’s AI venture, xAI, underlining the strategic importance of AI in Tesla’s future.
Speaking at the Davos conference last week, Musk outlined his vision for the potential impact of humanoid robots and AI on global living standards. “If you have ubiquitous AI that is essentially free or close to it and ubiquitous robotics, you will have an explosion in the global economy that is truly beyond all precedent,” he said, adding that such advancements could help eliminate poverty worldwide.
Dan Coatsworth, head of markets at investment platform AJ Bell, emphasized that Tesla’s electric vehicle segment remains essential. “Tesla still needs this part of its business to tick over smoothly as it helps fund Musk’s robot vision, which is getting bigger by the day,” he said, noting that EV sales will continue to provide the financial foundation for Tesla’s ambitious robotics initiatives.
The pivot toward Optimus comes as Tesla leverages developments in physical AI to accelerate humanoid robot capabilities. Musk has framed the robot as a long-term strategic investment, reflecting the company’s broader mission to integrate robotics into everyday life and industrial processes.
With the end of Model S and X production, Tesla is entering a new phase that balances its established electric vehicle business with its pioneering work in robotics and artificial intelligence, signaling the company’s evolving focus on the next generation of transformative technologies.
Tech
Study Says EU Regulations Are Slowing Rollout of Advanced AI Models
A new study by Governance.AI has found that European Union regulations are delaying the rollout of advanced artificial intelligence models, with technology companies increasingly pointing to the bloc’s regulatory framework as a key obstacle to launching new AI products in Europe.
The report examined 375 large language models (LLMs) released between June 2018 and May 2026, comparing their availability across the United States, the European Union and the United Kingdom. According to the findings, at least 11 percent of advanced AI model releases were either delayed or never launched in the EU compared with the United States. In the UK, the figure stood at 7 percent.
Researchers said they identified 68 cases in which AI models experienced delays or were withheld from specific markets. Regulatory factors were cited as the primary reason in 56 of those cases, making them the most common cause of restricted availability.
The study reviewed releases from major AI developers, including Meta, Google, OpenAI and Anthropic. Meta recorded the highest proportion of delayed or unavailable releases, with 26 percent of its AI models delayed or withheld in the EU and 15 percent in the UK. Anthropic’s Claude 3 Opus was highlighted as one example, with its web application arriving in the EU 71 days later than in the United States.
According to the report, data protection rules have emerged as the biggest regulatory hurdle, particularly for AI systems capable of processing images, audio and real-time video rather than text alone.
The researchers argued that uncertainty surrounding the application of the General Data Protection Regulation (GDPR) to AI model training and deployment has created additional challenges for developers. They also said enforcement of data protection rules has generally been stricter within the EU than in the UK, despite both jurisdictions sharing similar legal foundations following the adoption of the GDPR before Britain’s exit from the bloc.
The report noted that the full impact of newer legislation, including the Digital Markets Act, which began taking effect in 2023, and the Artificial Intelligence Act, adopted in 2024, has yet to be fully reflected in the data.
At the same time, the European Union is reviewing proposals aimed at making data rules more practical for AI development through its Digital Omnibus initiative. Lawmakers are also considering changes to copyright legislation and the AI Act’s copyright provisions to strengthen protections for creators, measures that researchers say could affect future AI model availability if implemented too strictly.
John Lidiard, a UK AI policy researcher and one of the report’s authors, said policymakers should consider the impact that regulatory barriers can have on businesses and consumers seeking access to the latest AI technologies. He said balancing innovation with effective oversight would remain a key challenge as governments continue to develop AI regulations.
Tech
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