Tesla is under pressure to deliver on its ambitious promises for robotaxis and its humanoid robot, Optimus, by 2026. CEO Elon Musk has linked these products to the company's valuation and his own pay package, raising stakes for the AI department. With tight margins and talent churn, the team must bridge the gap between current capabilities and future goals.

Tesla announced it will stop producing the Model S and Model X and has no plans for new mass-market vehicles. The company is pivoting to "transportation as a service," focusing on autonomous vehicles and abandoning its traditional automotive business.

Tesla is set to introduce its new AI system, dubbed "Grok," in vehicles as early as next week. This development is part of Elon Musk's ongoing efforts to integrate advanced artificial intelligence capabilities into Tesla's technology offerings.

Elon Musk may leave Tesla if his proposed $1 trillion pay package is rejected, according to Chair Robyn Denholm. She emphasized Musk's critical role in the company's success and stated that the performance-based plan is essential to align his incentives with shareholder interests and long-term growth.