BYD sells its entry-level Dolphin Surf EV for just $26,900 across Europe, whereas Tesla's Model 3 starts at over $40,000. Therefore, it's no surprise BYD's sales rocketed by 228% across the region last year, while Tesla's sales plunged by 37%. In fact, Tesla's decline was the largest of any other automaker with a presence in Europe.

On Tesla's fourth-quarter earnings call, CEO Elon Musk said the company is ending production of its Model S and X vehicles.

The company will stop making the pioneering EVs in the second quarter of 2026, CEO Elon Musk announced Wednesday.

Tesla CEO Elon Musk said Wednesday that the company would begin phasing out its Model S and Model X electric vehicles this year and retool a California factory to produce humanoid robots instead

Tesla expects to more than double capital spending in 2026 as it invests heavily in robotics and driverless technology.

Elon Musk said Tesla Inc. needs to build and operate what he is calling a “TeraFab” to manufacture semiconductors, a massive undertaking that will cost billions of dollars and mark another expansion beyond what had been the company’s core electric vehicle business.

The Fremont factory will still manufacture Model 3 and Y, but the space where Model S and X are made will instead focus on mass production of Tesla's Gen 3 Optimus robots.

Tesla earnings beat Wall Street's estimates. The stock rose in after hours trading. A call with analysts is scheduled for 5:30 p.m. ET.