Techin' Geek

Lucid Group concluded 2025 with a bright spot — producing twice the number of EVs compared to the previous year and reporting a 55% increase in sales. Then the first quarter of 2026 came.

The firm, known for the Air sedan and Gravity SUV, announced on Friday that it sold 3,093 vehicles in the first quarter, marking a 42% decline from the preceding quarter and approximately 0.5% below the same timeframe last year. It had manufactured a significantly higher quantity, around 5,500 in total.

Lucid indicated that the sales decline, along with the disparity between production and deliveries, does not stem from a lack of demand. Rather, the company attributes this to a supplier quality concern regarding its second-row seats, which delayed deliveries of the Lucid Gravity for 29 days.

The supplier complication also led Lucid to recall over 4,000 Gravity SUVs. Lucid informed the National Highway Traffic Safety Administration that it found some of the anchors for the SUV’s second-row seat belts were improperly welded.

Lucid spokesperson Nick Twork confirmed to TechCrunch that the reduction in sales was linked to supplier issues. He noted that due to an unauthorized alteration made by a supplier, the company had to pause Gravity sales for most of February to ensure vehicle quality before resuming them. Twork emphasized Lucid’s recent achievements, stating that “after eight record quarters, we demonstrated strong outcomes in both January and March, which nearly achieved year-over-year growth by themselves.” 

Lucid mentioned in its securities filing on Friday that the issue has been resolved, and the company appears optimistic that this disruption will not impact its production targets.

Lucid reaffirmed its previously stated production guidance of between 25,000 and 27,000 vehicles this year. Lucid produced 18,378 EVs in 2025. This would signify an increase of up to 47% from the previous year.

Lucid’s seat supplier challenges arise as the company gears up to commence production of its inaugural vehicle on a new lower-cost platform targeting the mass market. Lucid has indicated that this initial vehicle will be priced at approximately $50,000, a figure that will place it in direct competition with the forthcoming Rivian R2 SUV, as well as existing models like the Tesla Model Y, Tesla Model 3, and Chevrolet Equinox EV.

When Fizz made its quiet entrance in Saudi Arabia in mid-March, founder and CEO Teddy Solomon didn’t anticipate the app’s rapid rise. Within just 48 hours, it soared to the No. 1 spot on the App Store charts, and users in the nation have since exchanged over 1 million messages. For a social app designed for anonymity that began on college campuses, this launch was unexpected.

Solomon and his co-founder, Ashton Cofer, initiated Fizz in 2022 during their time as Stanford students before leaving school. After securing $40 million and introducing the app across 700 campuses, Fizz has been expanding its reach beyond academia with Fizz Feed, a feature that allows access to non-students via location-specific communities. It’s somewhat like Reddit, but lacks the option to create or join specific topic-driven groups. Saudi Arabia, where Fizz now ranks No. 1 in the news category, serves as its inaugural international test for this ambition.

“Our vision has always been to create a generational social product, not just a college social app, and now we are finally putting that into action,” stated Solomon. 

Fizz has not previously disclosed details about its plans for international growth.

Solomon mentioned that during a conference he attended in Dubai, he recognized an opportunity for Fizz’s growth in the Middle East. Shortly thereafter, Fizz’s marketing analyst Michael Fonseca relocated to Saudi Arabia to establish connections in the region and gain a deeper understanding of the local culture, facilitating Fizz’s international introduction.

“Mike was warmly received,” Solomon noted. “I believe [Saudi Arabia] has evolved significantly in recent years.” The nation is currently “thriving,” according to Solomon. “Business is flourishing. The social scene and social environment are thriving. Snapchat is massive there. Social apps are extremely popular in the area, whether it’s Snap, WhatsApp, TikTok, or any other app.”

This transformation in the perception of the country is deliberate. In 2016, Crown Prince Mohammed bin Salman initiated a government strategy named Saudi Vision 2030, which aims to reduce the country’s economic reliance on oil. This initiative involves enhancing the nation’s image — for example, women are now allowed to drive — and investing in Western tech firms, including Google and Uber.  More recently, the crown prince established a state-supported AI enterprise named Humain.

Notwithstanding these developments, Saudi Arabia continues to operate as an absolute monarchy, governed by a royal family that curtails free expression. In 2024, authorities sentenced Manahel al-Otaibi to 11 years in prison for the “terrorist offense” of tweeting about women’s rights and sharing images on Snapchat where she was not donned in traditional attire, as reported by Amnesty International.

While operating in Saudi Arabia, Fizz must remain vigilant as the monarchy may supervise the app for potentially offensive posts, require the removal of certain content, or even detain individuals based on their Fizz activities. Solomon lacks a definitive strategy for addressing such occurrences.

“We will address that challenge when it arises,” he remarked. “We hold great confidence in our guidelines. Our moderation is very strict and designed to satisfy the local populace while adhering to the region’s regulations and the country’s laws.”

Solomon mentioned that Fizz has made substantial investments in Arabic natural language processing technologies to enhance its content moderation efforts. The company has also recruited “hundreds” of volunteer moderators from the Saudi Fizz community. Fizz adopts a comparable approach within its college settings — employing AI moderation tools while also identifying volunteer moderators who possess deeper insights into the specificities of campus culture, providing them with enhanced context during moderation evaluations.

Fizz asserts that it has not received funding from any Saudi Arabian sources and has not engaged with any government officials.

“There’s considerable dedication to their community,” Solomon expressed. “There’s significant pride in their country, substantial pride in the city they inhabit, and they appreciate the platform. They aim to maintain the platform’s safety, and take great honor in doing so.”

The total number of employees at Tesla’s plant near Austin, Texas saw a significant reduction last year as the firm experienced its second consecutive year of falling sales, as per a compliance report highlighted by the Austin American-Statesman.

Tesla’s workforce at the factory decreased from 21,191 individuals in 2024 to 16,506 in 2025, marking a 22% decline. This occurred even as the company’s overall global staff increased from 125,665 in 2024 to 134,785 in 2025, based on documents submitted to the U.S. Securities and Exchange Commission.

It remains unclear which departments were hit hardest by Tesla’s workforce reductions at the factory. Nonetheless, the company has emerged as one of the largest employers in the Austin region since the factory’s opening in 2022. CEO Elon Musk also moved Tesla’s headquarters to the factory site in 2021 prior to its launch. The company has poured over $6.3 billion into the facility thus far, according to the latest report.

A few executives at OpenAI are moving into different positions, as reported by Bloomberg. An OpenAI representative verified the changes in personnel to TechCrunch.

Fidji Simo, CEO of AGI development, disclosed in a memo that Brad Lightcap, the COO of OpenAI, is taking on a new role overseeing “special projects,” which will entail “complex deals and investments within the organization.” He will report straight to CEO Sam Altman.

Denise Dresser, the previous CEO of Slack who recently became OpenAI’s chief revenue officer, will assume some of Lightcap’s commercial responsibilities.

NEW: OpenAI’s Fidji Simo announced executive changes to staff today: she is taking medical leave for several weeks, COO Brad Lightcap is moving to a new position, and CMO Kate Rouch is resigning to prioritize her cancer recovery.

More here: https://t.co/EfAqZI7jN3 pic.twitter.com/KmWoXUG0Iu

— Shirin Ghaffary (@shiringhaffary) April 3, 2026

Simo revealed her own news as well: She will be on medical leave for the upcoming weeks to address a neuroimmune issue.

“I have tried everything I can to prevent this, but unfortunately my body is not cooperating,” Simo stated in the memo acquired by Bloomberg.

“The timing is infuriating because we have a thrilling roadmap laid out that the team is working on, and I dislike the idea of missing even a moment of it,” she expressed.

During her absence, OpenAI co-founder and president Greg Brockman will oversee product management.

Kate Rouch, who leads marketing at OpenAI, will also resign from her position to concentrate on cancer recovery but is expected to return to a “different, more focused role when her health permits,” as stated in the memo. The firm intends to look for a new CMO.

“We have a robust leadership team dedicated to our top priorities: advancing cutting-edge research, expanding our global user base of nearly 1 billion users, and enhancing enterprise use cases,” OpenAI communicated to TechCrunch in a statement. “We are in a strong position to continue executing with continuity and drive.”

Update, 4/3/26, 6:25 PM ET with further details regarding Dresser’s responsibilities.

Anthropic has acquired the stealth biotech AI company Coefficient Bio in a $400 million stock transaction, as reported by The Information and Eric Newcomer. Insiders familiar with the agreement confirmed to TechCrunch that it was finalized, yet they refrained from commenting on the specifics of the financial terms.

This acquisition aligns with Anthropic’s ongoing expansion into healthcare and life sciences, following the October announcement of Claude for Life Sciences, a platform designed to assist scientific researchers in making discoveries.

Coefficient Bio’s founders, Samuel Stanton and Nathan C. Frey, established the startup eight months prior, both of whom have experience in computational drug discovery at Genentech’s Prescient Design. Coefficient Bio was leveraging AI to enhance the efficiency of drug discovery and various forms of biological research.

The team, comprising about 10 members, is anticipated to integrate into Anthropic’s health and life sciences division.

Anthropic has submitted paperwork to establish a new political action committee — indicating that, similar to its counterparts, the AI organization is allocating substantial resources to influence legislation and regulation.

AnthroPAC intends to make donations to both political parties during the midterm elections, including contributions to existing D.C. lawmakers and emerging political figures. The PAC will rely on voluntary contributions from employees, limited to $5,000, according to Bloomberg. A statement of organization submitted to the Federal Election Commission features a signature from Allison Rossi, the treasurer of Anthropic. TechCrunch contacted Anthropic for further details.

AI firms, which serve as both allies and rivals in a rapidly evolving and often volatile sector, have increasingly aimed to advocate for their preferred policies at both state and federal levels. The Washington Post highlighted last month that AI companies had already donated an astounding $185 million to midterm campaigns. In February, The New York Times also covered Public First, a new Super PAC that was said to have received at least $20 million from Anthropic, which financed advertising campaigns backing a specific regulatory framework.

Anthropic’s political engagement has intensified as the organization remains embroiled in a contentious legal dispute with the Defense Department. The conflict began earlier this year regarding the government’s utilization of Anthropic’s AI models and the regulations (if any) that should govern such use.

Apple’s iPads are equipped with integrated productivity applications like Notes, Calendar, and Reminders. However, if you wish to discover innovative methods for enhancing productivity and organizing your life, numerous apps are available to assist you.

Initially designed as a device for streaming media or browsing the internet on the move, Apple’s iPads have evolved into versatile computers capable of managing a wide range of tasks for personal, professional, and educational purposes. Consequently, many applications exist to aid in establishing a centralized location for organizing your life or maintaining focus on daily activities by minimizing distractions.

We have curated a selection of some of the top apps currently offered in the App Store.

Milanote

Milanote is an excellent choice for individuals who value a visual workspace for constructing a task manager, curating mood boards, or organizing plans.

You have the capability to transform disorganized concepts and tasks into a visual framework. Rather than depending on conventional lists, you can develop a board to outline your projects and arrange to-do tasks in a single location, providing a comprehensive overview. The application allows you to combine notes, images, videos, sketches, and beyond.

For collaborative projects, you can invite others to edit, comment on, or view your boards.

The application is versatile enough to facilitate activities like planning story outlines, creating storyboards, outlining marketing strategies, gathering artistic inspiration, arranging fashion ideas, drafting scripts, and much more.

Milanote can be used free of charge, but for unrestricted notes and file uploads, a subscription fee of $9.99 per month is required.

Goodnotes

Goodnotes ranks among the most popular applications for iPad, and it’s easy to see why. This app excels for users who appreciate writing notes with an Apple Pencil, as it allows the integration of both handwritten and typed content on a single page, along with images, stickers, and even sketches.

You can establish a digital notebook featuring blank or ruled pages for note-taking, checklists, planners, and beyond. The application permits exporting entire digital notebooks or selected pages as PDFs and other formats.

Additionally, Goodnotes includes an AI assistant capable of interpreting your handwritten or typed notes, summarizing, rewriting, or organizing them. It can answer inquiries, resolve mathematical problems, generate templates, and identify significant themes, among other capabilities.

Goodnotes is equally effective for drawing and sketching. While it may not be as advanced as some more creative applications like Procreate, it is user-friendly and suitable for quick sketches or diagrams.

Should you participate in a class or meeting, you can also record audio notes synchronized with your writing. Furthermore, you can utilize AI to summarize your notes and provide writing assistance.

You can create three digital notebooks and access basic AI functionalities such as the option to ask five questions per month and solve math problems free of charge. To unlock unlimited notebooks and advanced AI features, a subscription fee of $11.99 per year or a one-time payment of $35.99 is required. The app also offers a monthly AI Pass add-on for $9.99, granting additional monthly credits and advanced AI functionalities such as image generation.

TickTick

If you’re not satisfied with your iPad’s built-in Reminders application, or if you seek a more powerful to-do list and task management tool, TickTick could be an appealing option. It is suitable for both personal and professional tasks.

The application enables synchronization of tasks across all your devices and integration with your preferred calendar application. You can establish checklists, schedule recurring tasks, attach files to tasks, collaborate by sharing your task lists, and much more.

If you’re working on developing a habit—like meditating before sleeping—you can set your objectives in the app and monitor your advancement. Additionally, if you receive an email but are too busy to reply, you can convert it into a task to ensure you remember to answer.

Tags can be added to your tasks for better management, and you can assign priorities to them.

For concentrated work, the app’s “pomo timer,” based on the Pomodoro Technique that divides work into focused segments, can be activated to enhance productivity.

TickTick is available for free, but to access extra features such as adding up to five reminders to a task or more lists and assignments, a fee of $3.99 per month or $35.99 annually applies.

Forest

Forest is a unique application that gamifies productivity while contributing to environmental sustainability. If you find it difficult to maintain focus or are prone to distractions, this app could be beneficial for you.

When you need to concentrate, you can launch the app and plant a tree. Your tree flourishes as you focus and complete your tasks. If you exit the app before the timer concludes, your tree will die.

You can establish “Allow Lists” for particular applications you use to enhance productivity, such as email or Microsoft Word. The app also tracks your productivity.

Over time, you cultivate a digital forest that reflects your productivity. If you enjoy competition, you can share your forest with others to gauge how it measures up against theirs. By maintaining focus and nurturing virtual trees, you can earn coins to support actual tree planting efforts through the organization Trees for the Future.

Forest costs $3.99 for download, and you can make in-app purchases to accelerate your forest’s growth and plant real trees more quickly.

Notion

Notion serves as an excellent tool for note-taking, task management, workflow organization, habit tracking, and collaboration. Instead of juggling multiple applications for your calendar, tasks, and notes, you can accomplish everything within Notion.

The app features an AI assistant capable of writing, editing, and organizing content within your workspace. It can summarize extensive notes, respond to inquiries, draft text, locate information across your workspace, brainstorm ideas, and assist in creating lists, among other tasks.

You can integrate the various apps you use, such as Slack and Dropbox, to consolidate all your workflows in one location. One of Notion’s standout features is its degree of flexibility and customization. You can tailor it to meet your needs, whether for personal life management, academic responsibilities, or passion projects.

If you’re uncertain where to begin, templates are available to help you create resources like travel planners or product roadmaps. Additionally, Notion provides an AI feature that assists in brainstorming and writing. Notion AI can offer answers regarding your content and convert large data sets into manageable action items.

Notion offers a complimentary plan for personal use, along with a free trial of Notion AI. The company also provides a $10 per month Plus plan designed for small groups and a $20 per month Business plan intended for organizations.

Crouton

Meal planning can sometimes be time-consuming, which detracts from your ability to complete other tasks. For this reason, having an app like Crouton, designed to simplify cooking and meal organization, can be very helpful in managing recipes and grocery planning.

You can import recipes from online sources or scan them directly from cookbooks. This way, instead of depending on bookmarks or physical recipes, you can consolidate them in one location.

You can outline your meals for the week, and when you’re stuck on ideas for a particular day, the app can generate a meal plan for you. After compiling your weekly meals, you can construct a grocery list containing all the necessary ingredients.

Crouton features an in-app timer, eliminating the need to switch to another app for time-sensitive recipe steps. Plus, you can easily share your recipes with others—whether to inform family about dinner or to share a favorite dish with a friend.

Crouton provides basic functionalities free of charge, but a subscription of $14.99 annually grants access to unlimited recipes and additional features.

Freedom

Freedom is an effective application for blocking distractions to enhance your focus and productivity. You can initiate a Freedom session to obstruct distractions on all your devices for a predetermined duration.

You can select which websites and applications you wish to block during this time. For instance, if you are completing work on your iPad but attempt to open TikTok on your phone, you will be unable to do so and will instead encounter a green screen.

The app allows you to start a session immediately, schedule sessions for the future, or establish recurring sessions. If you know you need to be undistracted at a certain time each day, you can configure a Freedom session to activate at that specific time daily.

For those who rely on specific sounds for concentration, Freedom provides a variety of auditory options. For example, you can listen to the ambience of a café in cities like New York or Berlin, the soothing sounds of birds singing, calming instrumentals, and more.

The application has a fee of $3.99 per month, is user-friendly, and includes various articles featuring tips on boosting productivity and gaining insights into digital wellness.

Notability

Notability is a comprehensive note-taking application that enables you to jot down ideas, import and annotate textbooks, record audio, and sketch concepts. This app is beneficial for students, professionals, and even hobbyists alike.

You can opt to take notes using an Apple Pencil, text, or audio. If you’re searching for something specific, the app allows you to search through your notes, including handwritten ones and any uploaded documents.

Notability also provides AI-generated note summaries and the capability to work on two separate notes concurrently. Plus, you can evaluate your knowledge through personalized quizzes based on the content of your notes.

If you’re in need of inspiration, Notability offers a collection of templates for planners, study notes, to-do lists, and more.

While Notability is free, it includes a $4.99 monthly subscription that unlocks additional features such as math conversion, automatic audio transcription, and unlimited notes.

Todoist

Todoist is a user-friendly app that allows you to capture and arrange tasks using natural language. You can input tasks like, “Schedule next week’s work every Friday afternoon” or “Complete assignments every Wednesday at 6 p.m.” to easily manage and plan your activities.

Tasks can be sorted into categories such as “Today,” “Upcoming,” or custom filters to keep your focus on what’s currently important, ensuring that you only view relevant tasks when needed.

Todoist can be utilized for organizing various tasks, including work-related, personal, educational, or management objectives and reminders. Additionally, you can integrate Todoist with your calendar, voice assistant, and numerous other tools like Outlook, Gmail, and Slack.

Beyond the iPad, you have the ability to access the service from your iPhone and Apple Watch, with synchronization across desktops and all other devices.

The basic features of Todoist are available at no charge. You can unlock extra features, including an AI assistant and calendar layout, for $4 per month through Todoist’s “Pro” subscription plan.

Trello

If you enjoy using sticky notes to organize your tasks, Trello might be an ideal choice due to its straightforward and visual approach to task tracking.

Trello enables you to create “Boards” for various aspects of your life, such as work, education, projects, and personal aspirations, then establish lists like “To Do,” “Doing,” and “Done” to monitor your progress.

You can utilize “Cards” within boards to represent distinct tasks or items you wish to complete. Each card can contain descriptions, due dates, checklists, notes, and additional details. Moreover, labels can be applied to visually categorize cards and prioritize them, classifying them as “high,” “medium,” or “low.”

The app’s “Calendar view” provides a glimpse into upcoming tasks over the coming days and weeks.

Trello offers unlimited cards and up to 10 boards within its free plan. For $5 a month, the standard plan includes infinite boards and enhanced functionalities, such as capturing tasks from email, Slack, and Teams.

Update: This story originally ran in September 2024 and is regularly revised with new information.

Who doesn’t enjoy a thrilling case of FOMO? From the dot-com era to Web 2.0, virtual reality to blockchain, the technology sector has seen its fair share of anxiety about missing out on trends.

The AI bubble is the grandest of them all. Its initial offspring — the frenzy to secure power for data centers — is now spawning a frantic race to obtain natural gas resources and machinery. If FOMOs could reproduce, the AI bubble is already in the grandparent phase.

On Tuesday, Microsoft announced that it’s collaborating with Chevron and Engine No. 1 to construct a natural gas power plant in West Texas that could expand to generate 5 gigawatts of electricity. This week, Google verified that it’s partnering with Crusoe to create a 933 MW natural gas power facility in North Texas. Additionally, last week, Meta revealed it would be adding seven more natural gas power plants to its Hyperion data center in Louisiana, escalating the site’s capacity to 7.46 GW — sufficient to power the entire state of South Dakota.

Is there anyone we’ve overlooked?

The recent funding is primarily focused in the southern U.S., which hosts some of the largest natural gas reserves globally. The U.S. Geological Survey recently estimated that in one area alone, there’s enough to provide energy to the entire United States for 10 months. Every data center operator seems eager to stake a claim.

The rush for natural gas has caused a shortage of turbines for power plants, with prices expected to soar by 195% by year’s end compared to 2019 figures, as noted by Wood Mackenzie. This equipment accounts for 20% to 30% of the total cost of a power plant. Firms won’t be able to make new orders until 2028, and turbine delivery is taking an estimated six years, according to the consultancy.

This indicates that tech companies are wagering that the AI craze will persist, that AI will require ever-increasing amounts of energy, and that natural gas power generation will be crucial for triumph in the AI age.

They may eventually regret that third assumption.

While the U.S. boasts ample natural gas supplies, and shipping the fuel isn’t economical, the country is somewhat shielded from the unrest in the Middle East. However, supplies are not infinite, and recently, growth in production from the major three regions — responsible for three-quarters of all U.S. shale gas output — has decelerated significantly.

It’s uncertain how insulated tech firms are from price fluctuations as no specific terms of their agreements have been disclosed. Much will hinge on how firm the pricing is in those contracts.

Even if the contracted prices are as stable as possible, companies could still encounter challenges.

Since natural gas accounts for around 40% of electricity generation in the U.S., according to the Energy Information Administration, electricity costs are closely linked to natural gas prices. Tech firms might briefly mitigate scrutiny by relocating their gas power plants behind the meter — bypassing the grid and connecting them directly to their data centers. Nevertheless, natural gas is a finite resource, and if their aspirations expand too significantly, even behind-the-meter operations could inflate power prices for all. This pattern has been observed before.

It won’t solely be ordinary households that become disgruntled. Other sectors, including those more reliant on natural gas who haven’t yet switched to renewables, might object to data centers monopolizing so much of the resource. Powering a data center with wind, solar, and batteries is straightforward. Operating a petrochemical facility? Not nearly as simple.

Then there’s the factor of climate. A single harsh winter could alter the dynamics by increasing demand among households. Wellheads might freeze, drastically reducing supplies, as experienced in Texas in 2021. When gas becomes scarce, suppliers will be faced with a dilemma: keep the AI data centers operational or allow residents to heat their homes?

By acquiring natural gas resources and operating behind-the-meter, tech companies can assert that they’re “providing their own power” and not straining the electrical grid. However, in reality, they’re merely transferring their usage from one grid to another, the natural gas network. The AI surge has highlighted how physically limited the digital realm remains. Is it wise for them to place big bets on a limited resource? Tech firms may come to regret falling for the FOMO.

As data centers have expanded and multiplied, so has the resistance.

A recent poll from Harvard/MIT indicated that 40% of individuals were in favor of constructing a data center in their vicinity, with 32% against it when queried about the establishment of various industrial sites in their neighborhoods.

One interesting detail from the survey, according to Axios: More individuals would prefer an e-commerce distribution center.

Two-thirds of those surveyed in the 1,000-person poll carried out in November expressed concerns that a new data center in their locality could drive up electricity costs. Enthusiasm for job creation and economic development supported the argument for data centers, as reported by Axios — although that feeling may diminish since most data center operations don’t generate many jobs once they’re established.

Another survey, performed last month and released earlier this week by Quinnipiac University, revealed significantly greater opposition to the construction of data centers. That poll discovered that 65% of Americans were against the establishment of an AI data center in their neighborhood, while only 24% of the 1,397 U.S. adults surveyed endorsed the idea.

The recent polls indicate that the discussion surrounding data centers is far from resolved, and ongoing dissatisfaction from such a significant portion of the electorate is likely to continue influencing politics. Data centers used to operate quietly in the background, but that’s changed.

It’s been on the horizon for weeks, but the conclusion is approaching: Only a few hundred Tesla Model S and Model X cars are left available for sale. Tesla’s CEO Elon Musk confirmed in a post on X this week that custom orders for the Model S sedan and Model X SUV have concluded. “All that remains are a few in inventory,” he stated.

Musk initially revealed Tesla’s intention to halt Model S and Model X production back in January. The data clarifies the reasoning behind this.

Sales of the Tesla Model X and Model S have consistently decreased over the years as the company’s higher volume and more affordable models — the Model 3 and Model Y — have risen in popularity. Tesla aggregates S and X sales under “other models,” which now includes the Cybertruck. The combined data shows S and X sales peaked in 2017 at 101,312 units before dropping to 50,850 units (Cybertruck inclusive) in 2025 — a minute fraction of the 1.63 million vehicles it shipped worldwide last year.

In simple terms, their demise was unavoidable. The subsequent developments are slightly more complex.

Musk is not replacing the void created by the Model X and Model S with a conventional EV; he abandoned plans to manufacture a more affordable EV that was anticipated to cost around $25,000. Instead, Musk is betting on the Optimus robot, which has yet to commence production, and the Cybercab, an entirely electric two-seater autonomous vehicle that was first introduced as a concept in 2024.

Tesla aims to manufacture Optimus robots at its Fremont, California, facility once production of the Model S and Model X concludes, potentially any day now as final orders have been placed. Musk has indicated that Tesla will start producing the Cybercab this month at its factory in Austin, Texas.

A retrospective

The Model S and X EVs have taken a backseat to the more budget-friendly Model 3 and Model Y vehicles. However, their launches and initial sales represented two pivotal moments in Tesla’s vibrant and often tumultuous history. The Model S debuted in 2012 as the company’s first mass-market EV. Its acclaim not only transformed consumer perceptions of EVs but also compelled traditional automakers — long skeptical of the significance of electric vehicles — to pay attention.

The Model X followed in autumn 2015 and was famously dubbed by Musk as the Fabergé egg of EVs.

“I think we got a bit overenthusiastic with the X,” Musk remarked in a September 2015 press interview attended by this reporter just an hour prior to Tesla’s Model X delivery event. “I’m not certain anyone should manufacture this car.”

The Model X was frequently delayed and initially critiqued for its complexity. Nevertheless, it ultimately opened doors for the company to a new demographic: women.

The Model X elevated Tesla’s visibility, positioning the company for its next significant venture: an affordable mass-market EV. The Model 3 experienced a rocky beginning, but ultimately propelled Tesla into the spotlight. The Model Y solidified its status, helping Tesla to extend its lead as the top-selling EV manufacturer worldwide until China’s BYD claimed that leading global EV sales position in 2025, delivering 2.26 million EVs.

Tesla continues to sell thousands of Model 3 and Model Y units, but its growth has stagnated and even reversed. The company announced in January that it sold 1.69 million vehicles in 2025, a decline for the second consecutive year. Its attempts to boost sales with more economical, stripped-down versions of the Model 3 and Model Y launched in October have shown some degree of success, based on first-quarter 2026 numbers reported on April 2.

In the first three months of the year, Tesla delivered 358,023 EVs globally, approximately 6% more than during the same timeframe in 2025, which was the company’s worst quarter in years. This figure fell short of analysts’ projections of around 368,000.

But that is of little concern. In Musk’s perspective — one for which he is well rewarded — Tesla is not merely an automaker or a sustainable energy entity, as he has previously stated. Tesla is fundamentally an AI company, and his new strategy fully embraces that vision.

Cybercab challenges

The Optimus robot is one component of Tesla’s AI initiative. However, it is the Cybercab that most clearly captures and unveils the risks associated with the company’s AI-centric approach.

The Cybercab is engineered to operate as an autonomous vehicle without conventional controls such as a steering wheel or pedals, meaning it will launch without the support of a human safety operator.

The inaugural Cybercab exited the Tesla factory assembly line in February and is scheduled to begin mass production this month. However, that timeline may be pushed back, as many have in Tesla’s past.

Unlike Tesla’s earlier vehicles, the challenges here do not lie in the production (who can forget the production struggles of the Model 3?). Instead, it faces significant regulatory impediments before it can hit the streets. Federal motor vehicle safety standards require vehicles to include a steering wheel and pedals. There is no indication that Tesla has sought an exemption, based on publicly available records from the Federal Register and the National Highway Traffic Safety Administration.

The vehicles will also depend on Tesla’s Full Self-Driving software to navigate public thoroughfares and securely transport passengers to their destinations. Despite advancements in FSD and limited trials with driverless robotaxis in Austin, Tesla has yet to prove that its software can function reliably at scale.

And that aspect demands more than just technical expertise. Robotaxi operations are also complex. In places like California, they require permits to deploy and charge for rides in driverless vehicles.

Zoox, the autonomous vehicle firm owned by Jeff Bezos’ Amazon, could pave the way for Tesla and its Cybercab. Zoox received an exemption from the National Highway Traffic Safety Administration permitting it to showcase its custom-designed robotaxis, which do not feature pedals or a steering wheel, on public streets. Zoox is currently undergoing a public process to have that exemption expanded to commercial activities.

Musk attempted to convince shareholders about the merits of the risk during the company’s earnings call in January.

“The vast majority of miles traveled will be autonomous in the future,” Musk stated at the time, adding that the Cybercab is highly optimized for the lowest cost per mile and also for a significantly higher usage rate. “I would estimate probably less than, I’m just hypothesizing, but probably less than 5% of miles driven will see someone actually driving the car themselves in the future, perhaps as low as 1%.”