Tesla To Convert Fremont Car Factory Into It's Optimus Robot Factory

Tesla Fremont Factory on January 29, 2026, in San Rafael, California (Justin Sullivan/Getty Images)

The economics of Tesla the company are still all about cars. The economics of Tesla the stock are not.

The company is ditching some of its EV models as it doubles down on robots, AI, energy, and self-driving.

1/30/26 7:39AM

For years, Elon Musk has insisted Tesla isn’t really a carmaker. Slowly but surely, that statement is getting more accurate.

On Wednesday, the Texas-based company posted its first-ever annual revenue decline, with 2025 revenue falling 3% to $94.8 billion. Behind the drop was a 10% dip in automotive revenue, as weaker EV demand pushed vehicle deliveries and average selling prices lower.

What helped cushion a bigger blow was Tesla’s Energy Generation and Storage segment, which sells solar gear and large batteries used to generate and store electricity for homes, EVs, businesses, and the power grid.

The economics of Tesla [FY2025] — Sherwood news

A fast-growing part of Tesla, the Energy segment generated nearly $13 billion in revenue last year, up 27% from 2024, and now accounts for around 13% of the company’s total — more than double its share from just two years ago.

Still, Automotive makes up nearly three-quarters (73%) of Tesla’s business. And Musk would like that share to be replaced by sales from robots. On Wednesday, Musk said Tesla will wind down production of its two priciest EV models next quarter, converting that factory space to produce Optimus, its humanoid robot — though it won’t be commercially available until late 2027.

Meanwhile, Tesla’s Robotaxi service — launched last year in Austin and the Bay Area — is set to expand to additional cities and ultimately be supported by Cybercabs. Musk also hopes that selling its Full Self-Driving software to Tesla car owners, a product that’s becoming subscription-only, will boost its fortunes further. Reports even surfaced this week that Musk’s rocket company, SpaceX, is actually considering a merger with Tesla or xAI.

All of this reinvention, of course, comes at a cost. Tesla’s operating income fell 38% from a year earlier, and the company’s capital expenditure is set to soar this year — joining a raft of other tech companies that are splurging like never before. Still, Tesla’s $20 billion capex bill for 2026 looks positively cheap compared to Meta’s: the Instagram owner could spend as much as $135 billion on capex this year.

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Electronic Arts launches a platform to put more ads in its games

Video game publishing giant EA launched a new platform on Monday designed to make the process of selling immersive ad space in its popular games easier.

The company says the platform, called EA Advertising, allows brands to “integrate directly into gameplay through dynamic, real-time placements, from stadium signage to custom in-game content.”

More so than other studios, EA has incorporated advertising into its most popular titles. As Kotaku points out, the company’s ad efforts stretch as far back as 2006. Several of its sports franchises already feature partnerships with brands like Visa, Lowe’s, Red Bull, and PepsiCo.

In-game advertising hasn’t exactly been embraced by fans, but industry experts expect it to ramp up as companies seek more revenue to offset higher games budgets and surging memory costs. EA rival Take-Two has taken a different approach, with CEO Strauss Zelnick recently saying the company was “not at risk of doing brand partnerships” in the forthcoming “Grand Theft Auto VI,” and that ads in full-price games seems “unfair.”

The $55 billion deal to take EA private, led by Saudi Arabia’s Public Investment Fund, is set to close at the end of this month. Being the largest leveraged buyout in history, EA will likely look for more ways to boost revenue to cover interest payments.

Electronic Arts Makes Push for Ad Dollars Tied to Sports

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JM Smucker says it sold $1 billion worth of Uncrustables in FY2026

After years of booming sandwich sales, JM Smucker has finally earned a billion-dollar crust.

On Tuesday, the company reported results for fiscal year 2026, highlighting better-than-expected profits driven by higher prices for coffee and sweet baked goods. However, at another point on the earnings call, CEO Mark Smucker pointed to one particularly jammy figure: in line with previous forecasts, the company sold $1 billion worth of its (almost always) crustless sandwiches, Uncrustables, in the last year alone.

Max Knoblauch6/8/26

Paramount reportedly offers concessions to resolve multistate antitrust investigation

Paramount has reportedly offered up some concessions in an effort to prevent an antitrust lawsuit by California and about 10 other states, according to Bloomberg reporting on Monday.

Reuters first reported on the potential suit from a group of unnamed states last week, which could throw a wrench in Paramount’s plans to buy rival Warner Bros. Discovery in a Hollywood megamerger.

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

Paramount Offers Concessions to Head Off State Antitrust Lawsuit

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

$98B ⛽

Max Knoblauch6/8/26

The IATA released its latest financial outlook for the airline industry over the weekend, forecasting a $98 billion jump in the sector’s collective fuel bill. The world’s largest trade group representing airlines expects the oil spike to halve profits by 49% from last year to $23 billion.

The group also expects profit margins to halve year over year, falling from 2025’s 4.2% to 2%. Still, revenue is expected to climb to $1.17 trillion from $1.07 trillion.

A surge in the cost of jet fuel has rocked US and global airlines this year, leading Delta Air Lines, United Airlines, American Airlines, Southwest Airlines, JetBlue, and others to raise fares and ancillary charges like bag fees. Low-cost carriers, which operate on smaller margins, have been squeezed the hardest, resulting in Spirit’s shutdown.

“It’s a tough year for all airlines, especially those whose balance sheets had not yet recovered from COVID. And, of course, for those operating in the Gulf,” said IATA Director General Willie Walsh, who added that demand is holding up and about half of passengers expect to spend more on travel this year. “That bodes well for a strong northern summer peak season. The big unknown is how long travelers and shippers can tolerate the higher costs of connectivity.”

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