Tesla Inc. is facing a difficult road ahead after deliveries of its fully electric vehicles declined for a second year in a row and were overtaken by Chinese rival BYD Co. on an annual basis for the first time.

In the Q4 earnings call for Tesla, Elon Musk said the Fremont factory would stop production of Model S and X vehicles, and instead, it will pivot to producing Optimus robots.

CEO Elon Musk recently provided encouraging updates on Tesla's autonomous driving and humanoid robotics technology.

Tesla’s annual profit plunged to its lowest level since the pandemic five years ago as it lost the title of the world’s biggest electric vehicle maker to a Chinese rival and boycotts hammered sales.

Speaking at the World Economic Forum in Davos, Switzerland last week, Musk said that Tesla is “planning to make its Optimus robots available for sale to the public by the end of 2027.” That is when Tesla will be confident that the robots will be highly reliable, safe and functional. The robots will be able to perform any task, he said.

Boston Dynamics' Atlas appears to have an edge over Tesla's Optimus.