New Delhi, Jan. 30 -- Is Tesla about to shift its business focus from electric vehicles (EVs) to humanoid robots? Hit by Chinese rivals like BYD, the EV maker reported its first-ever annual drop in revenue, down 3% to $94.8 billion in 2025. Its chief Elon Musk has said it will quit rolling out its pricey S and X models.

Musk's self-confessed love of the letter 'X' makes the latter's withdrawal a surprise. But then, business logic must prevail. Tesla's cheaper Y and 3 models made up 97% of the 1.6 million EVs it delivered last year. Its S and X factories will be repurposed to crank out Tesla's AI-run robot Optimus.

This pet project aims to fulfil the sci-fi fantasy of a bipedal machine that moves around and acts like a human. Since the i...