Tesla’s Q4 2025 earnings call made one thing painfully clear: the company is no longer interested in being an automaker.
In a single call, Tesla announced it’s killing the Model S and Model X, has no plans for new mass-market models, and is pivoting entirely to “transportation as a service.” The company that revolutionized the auto industry is walking away from it, not because it failed, but because Elon Musk got bored and found new toys.
What happened to Tesla today
When asked if Tesla has plans to launch new models to address different price segments, VP of Vehicle Engineering Lars Moravy gave a telling response:
“You have to start thinking about us as moving to providing transportation as a service more than the total addressable market for the purchased vehicles alone..”
Read that again. Tesla’s head of vehicle engineering is telling you to stop thinking of Tesla as a company that sells cars.
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Musk doubled down:
“I really think long-term, the only vehicles that we’ll make will be autonomous vehicles.”
He predicted that “probably less than 5% of miles driven will be where somebody’s actually driving the car themselves in the future, maybe as low as 1%.”
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