/ January 30, 2026 Tesla is navigating a profound strategic shift, marking a potential turning point in its corporate history. The electric vehicle pioneer is severing ties with its foundational models while channeling billions into artificial intelligence and robotics. This realignment, championed by CEO Elon Musk, is being propelled by rumors of a potential merger with SpaceX and stronger-than-anticipated profitability in the final quarter of 2025. Merger Speculation Fuels Investor Sentiment Market speculation received a significant boost from a Bloomberg report indicating that SpaceX is evaluating a potential merger with either Tesla or xAI. Analysts suggest such a combination could unlock substantial synergies, potentially integrating Starlink connectivity into vehicles or deploying Tesla’s Optimus humanoid robots in aerospace manufacturing. Tesla’s share price, currently trading at 392.90 euros, reacted favorably to these rumors in after-hours U.S. trading. The Closure of an Era: Discontinuing Legacy Models In a decisive strategic move, Musk is phasing out production of the once-flagship Model S and Model X vehicles. These models, which originally established Tesla as a serious automaker, now contribute only a minor fraction of total revenue. The rationale is purely pragmatic: the freed manufacturing capacity will be reallocated to produce the Optimus humanoid robot. This underscores a corporate bet on a future extending far beyond traditional car manufacturing, a focus further emphasized by Tesla’s participation in a $2 billion investment in the AI firm xAI. Profitability Strength Amidst Revenue Pressure Tesla’s fourth-quarter 2025 results provided investors with reasons for optimism, despite a mixed annual picture. For the full year 2025, the company recorded its first-ever revenue decline, with figures dropping approximately 3% to just under $94.8 billion. However, the profitability metrics from the closing quarter delivered a positive surprise.