Tesla shares fell 3.45% as strategic shifts including Model S X phase-out and Optimus robot development focus weigh on pre-market trading.

Tesla shares fell 3.4534% in pre-market trading on Thursday as investors digested CEO Elon Musk’s comments during a conference call. The decline came amid strategic shifts at the electric vehicle maker, including the planned phase-out of Model S and Model X production to prioritize Optimus robot development.

Executives emphasized Tesla’s pivot toward becoming a “transportation-as-a-service company,” aligning with Musk’s broader vision for autonomy and robotics. The company also announced $20 billion in capital expenditures for 2026, signaling a significant reallocation of resources toward AI infrastructure and robotaxi platforms.

Recent financial results highlighted mixed performance, with Q4 vehicle deliveries missing estimates by 2.4% and revenue falling 0.9% short of expectations. However, non-GAAP earnings beat forecasts, and management pointed to growing Full Self-Driving software adoption and record energy segment deployments as key strengths.

Looking ahead, Tesla faces challenges including battery supply constraints and intensifying competition in robotics. The shift to FSD subscriptions and expanded international operations are expected to shape the company’s trajectory, though near-term margin pressures remain a risk.