Electric vehicles face questions as Elon Musk shifts Tesla's focus.

On Tesla's earnings call, Elon Musk said production of the Model S and Model X will stop and factory space will be repurposed for humanoid robots and a Cybercab robotaxi; Tesla also reported significant declines in quarterly and annual net income and in year‑over‑year sales.

Elon Musk announced on Tesla's recent earnings call that the company will stop producing the Model S and Model X and convert the affected factory space to build humanoid robots and a Cybercab robotaxi. Tesla also reported substantial declines in net income and year‑over‑year sales in late 2025. The article notes intensified competition from Chinese EV manufacturers and changes to U.S. and Canadian policy as factors shaping the market. Ottawa is reported to be replacing its EV mandate with tailpipe emissions standards while investing in charging infrastructure and returning consumer incentives. Key points: - Tesla will cease production of the Model S and Model X and repurpose the space for humanoid robots and the Cybercab, as announced by Elon Musk. - Tesla reported a large drop in net income (a 61% decline in the quarter and a 46% decline for the year) and its biggest year‑over‑year sales decline in the fourth quarter of 2025. - The article cites growing competition from Chinese EV makers and notes that BYD surpassed Tesla as the world's largest EV seller last year. - The Globe and Mail reports that Ottawa will scrap its EV mandate in favour of tailpipe emissions standards and plans increased investment in charging and consumer incentives. Summary: Tesla's announced pivot reflects internal company choices and broader market pressures, including competition and shifting public policy. The longer‑term effects on EV adoption and market structure are undetermined at this time.