Tesla's Q4 2025 earnings call was one of those that will go down in history

Elon Musk didn't mince words: he dropped several bombshells showing that Tesla has gone from being "just" an electric car manufacturer to becoming a dominant force in robotics, AI, and autonomy.

• The "honorable discharge" farewell to the Model S and Model X – Musk used this epic expression: "It's time to basically bring the Model S and X programs to an end with an honorable discharge." He explained that it's "slightly sad," but strategic: production ends next quarter (Q2 2026), and the Fremont factory lines will be fully converted to produce Optimus on a large scale. "We're going to take the Model S and X production space in our Fremont factory and convert that into an Optimus factory, which will... with the long-term goal of having 1 million units a year of Optimus robots in the current SX space in Fremont." Those who own a classic S or X should cherish it – but the message is clear: the legacy of luxury sedans and SUVs is over to make way for humanoid robotics.
• Optimus at the center of the Tesla universe: The Gen 3 (the mass-production-ready version, with a redesigned hand and significant upgrades) will be revealed as early as Q1 2026. Production begins before the end of 2026, with first-generation lines being installed now. Elon reinforced that the robot is already in the factory learning real tasks (to accelerate training), and that it will evolve rapidly to complex activities. He painted a grand picture: Optimus + autonomy will create an era of "amazing abundance," with high universal income, explosive productivity, and a billion-dollar impact on the US GDP. Musk called it "the greatest product in the history of humanity"—and the tone was that of someone who truly believes it. "Long term, I think Optimus will have a significant impact on the US GDP."
• Heavy integration with xAI: Tesla will invest US$2 billion in preferred stock of xAI

(Grok's company). It has a future collaboration framework, like using Grok to manage giant autonomous fleets, optimize rare material refineries, and turbocharge the AI ecosystem. This connects everything: Tesla + xAI + Dojo + autonomy. It's "Muskonomy" closing in a powerful loop.

• Insane Expansion in Solar Energy and Batteries*: Musk highlighted that the production of solar panels (via Tesla Energy) is accelerating, focusing on making solar "underrated" in the energy mix. He emphasized how solar panels will be crucial alongside Megapack batteries to create scalable renewable storage systems – like entire grids that operate 24/7 without relying on fossil fuels. And the key point: this will power data centers in the AI and high-performance computing space. With the boom in training models like Grok and Dojo, these data centers consume insane amounts of energy (like gigawatts), and the solar + battery combo will make everything sustainable, reducing costs and emissions. Elon mentioned potential partnerships with SpaceX for orbital or remote data center infrastructure, where solar energy is king. This isn't just greenwashing – it's the backbone for the "abundance" he promised.

Other highlights reinforcing the shift: Robotaxi/Cybercab remains on schedule (production in 2026), projected billion-dollar capex (over US$20 billion in 2026 for new factories, AI chips, and Optimus), and the company's updated mission to create abundance through physical technology + AI.

In short: anyone who still sees Tesla as an "electric car company" is looking in the rearview mirror. Today's call was the definitive inflection point: the narrative has shifted 100% to humanoid robots + autonomy + AI + renewable energy = the next stage of civilization.

Short-term challenges (competition, politics, economics) exist, but the long-term upside that Musk painted is absurd. Those who doubted the valuation now have to rethink – or be left behind.