Sunday, February 1, 2026

Tesla's Shift To Robotics And AI

 


Tesla is making a transformation of its business model. The company is moving away from the production of electric vehicles to AI and robotics. The tech industry has seen a major concentration in the application of AI. The motivation could relate to Tesla's fall in revenue. The fall in sales has a direct link to the political activities of Elon Musk. The CEO of Tesla worked for the Trump administration in the Department of Government Efficiency. The purchase of Twitter and then its rebrand to X.com generated controversy. Seeing as Musk damaged the public image of the company, sales of Tesla vehicles declined. The manufacturing plants are being converted into Optimus robot production centers. The new AI venture has been revealed to be called xAI. The motivation to do the shift is to replace workers with robots. The Optimus is not advanced enough to do certain tasks. The technology at this stage is more so an amusing product of entertainment. Over the next few decades, the Optimus robots could be able to perform more functions. Jobs in manufacturing, tech, and the service sector could vanish due to the Optimus robot. Tesla is using X.com as a testing ground for AI. The rise of AI seems similar to the .com bubble of the late 1990s to early 2000s. Limited regulation and unpredictable technology could have dire consequences. Tesla faces competition from other companies, that focus on AI solely. Tesla transformation from car production to robotics and AI will take a number of years.  



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