The Porsche Taycan is an uncompromising electric sports sedan. Built on a platform designed specifically for EVs and tapping into electric motor tech that powered past flagship vehicles like the 918 Spyder, the Taycan represents the best of what Porsche can offer today, in an unapologetically electric package.
It is then unsurprising to see that with the Taycan’s arrival, the long-debunked narrative of the “Tesla Killer” was reborn. American online auto information resource Edmunds, for one, proudly declared in a tweet that after experiencing the Taycan that its team “got out with a singular thought: This is a Tesla Killer.” The company then proceeded to state that the Taycan has a “driving ability that no Tesla can match,” especially considering that its track-capable and its optimal 0-60 mph launches could be repeated “endlessly.”
While statements such as these foster both healthy and unhealthy debates among the EV and auto community, it is pertinent to highlight the simple fact that the Taycan is NOT a “Tesla Killer.” Instead, it could very well be the first genuine attempt from an experienced premium automaker to design and release an electric vehicle that is, in more ways than one, a potential “killer” of the internal combustion engine. This makes the Taycan the strongest vehicle yet that could accompany Tesla in Elon Musk’s overall plan to transition the transportation sector away from fossil fuels.
The Taycan, particularly the Turbo S variant, is an honest-to-goodness driver’s car. The German automaker made it clear that when it was designing the vehicle, it made sure that the “soul” that is so valued among the traditional car community is present in the electric four-door sedan. This is evident in the way the company tuned the driving dynamics of the car, which was tuned in the Nurburgring. The Taycan is just like any other Porsche: it’s the type of car that you take up to the mountains on a weekend drive. It just happens to be electric.
During its Annual Press Conference earlier this year, Porsche emphasized how the Taycan is the start of its own transition to a full embrace of electric mobility. The company’s executives acknowledged that more electric vehicles are coming, and it is transitioning its fleet as much as possible to do so. Porsche is serious enough in this initiative that it quite literally changed the face of its historic Zuffenhausen factory to make way for the Taycan and its other upcoming electric cars.
Perhaps what really makes the Taycan a compelling vehicle is the fact that unlike other EVs from veteran carmakers that have come before it, the four-door is not an exercise in compromise. It represents a real effort by an experienced automaker to release an EV that is superior to some of its own ICE-powered creations. A look at the vehicle’s specs shows that apart from its range, which is still far from Tesla’s level, the Taycan is a solid electric car. It could even be stated that with the Taycan’s arrival, it would be pretty silly to choose an equally-priced high-performance car with an internal combustion engine.
Elon Musk has always stated that Tesla’s mission is to accelerate the transition of the auto industry towards sustainability. The company has so far been able to accomplish this by introducing vehicles like the Model S and Model 3, both of which are simply better than the available competition. Yet Musk has also been honest about his belief that Tesla could not push the auto industry towards sustainability alone. It needs other automakers to join the fray by offering excellent electric vehicles that beat out gas cars in key metrics. The Taycan could very well be the first in this list.
Tesla has long been a polarizing company, and it will likely continue to be polarizing for years to come. Regardless of how successful the company gets, or how well vehicles like the Model 3 and Model S perform on the market, there will always be car buyers that will refuse to purchase one of its vehicles based on one reason or another. Accelerating the world’s transition to sustainability is a mass effort, and the auto industry would need a lot more vehicles like the Porsche Taycan to accomplish this.
Overall, could the Taycan potentially steal some customers from Tesla’s higher-priced vehicles like the 345-mile, ~$100,000 Model S Performance? Perhaps, if buyers are in the market for a ~$150,000 car that drives like a classic Porsche, and if they are more open to a high-performance EV with 279 miles of range (under the WLTP standard) and less interior space. But will the Taycan affect the Model 3 in any way? Absolutely not.
News
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
Tesla confirmed its intentions to expand the Robotaxi program in the United States with an aggressive timeline that aims to send the ride-hailing service to several large cities very soon.
The Robotaxi program is currently active in Austin, Texas, and the California Bay Area, but Tesla has received some approvals for testing in other areas of the U.S., although it has not launched in those areas quite yet.
However, the time is coming.
During Tesla’s Q4 Earnings Call last night, the company confirmed that it plans to expand the Robotaxi program aggressively, hoping to launch in seven new cities in the first half of the year.
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
These details were released in the Earnings Shareholder Deck, which is published shortly before the Earnings Call:
🚨 BREAKING: Tesla plans to launch its Robotaxi service in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in the first half of this year pic.twitter.com/aTnruz818v
— TESLARATI (@Teslarati) January 28, 2026
Late last year, Tesla revealed it had planned to launch Robotaxi in Las Vegas, Phoenix, Dallas, and Houston, but Tampa and Orlando were just added to the plans, signaling an even more aggressive expansion than originally planned.
Tesla feels extremely confident in its Robotaxi program, and that has been reiterated many times.
Although skeptics still remain hesitant to believe the prowess Tesla has seemingly proven in its development of an autonomous driving suite, the company has been operating a successful program in Austin and the Bay Area for months.
In fact, it announced it achieved nearly 700,000 paid Robotaxi miles since launching Robotaxi last June.
🚨 Tesla has achieved nearly 700,000 paid Robotaxi miles since launching in June of last year pic.twitter.com/E8ldSW36La
— TESLARATI (@Teslarati) January 28, 2026
With the expansion, Tesla will be able to penetrate more of the ride-sharing market, disrupting the human-operated platforms like Uber and Lyft, which are usually more expensive and are dependent on availability.
Tesla launched driverless rides in Austin last week, but they’ve been few and far between, as the company is certainly easing into the program with a very cautiously optimistic attitude, aiming to prioritize safety.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Tesla’s (NASDAQ:TSLA) Q4 and FY 2025 earnings call highlighted improving margins, record energy performance, expanding autonomy efforts, and a sharp acceleration in AI and robotics investments.
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Key takeaways
Tesla reported sequential improvement in automotive gross margins excluding regulatory credits, rising from 15.4% to 17.9%, supported by favorable regional mix effects despite a 16% decline in deliveries. Total gross margin exceeded 20.1%, the highest level in more than two years, even with lower fixed-cost absorption and tariff impacts.
The energy business delivered standout results, with revenue reaching nearly $12.8 billion, up 26.6% year over year. Energy gross profit hit a new quarterly record, driven by strong global demand and high deployments of MegaPack and Powerwall across all regions, as noted in a report from The Motley Fool.
Tesla also stated that paid Full Self-Driving customers have climbed to nearly 1.1 million worldwide, with about 70% having purchased FSD outright. The company has now fully transitioned FSD to a subscription-based sales model, which should create a short-term margin headwind for automotive results.
Free cash flow totaled $1.4 billion for the quarter. Operating expenses rose by $500 million sequentially as well.
Production shifts, robotics, and AI investment
Musk further confirmed that Model S and Model X production is expected to wind down next quarter, and plans are underway to convert Fremont’s S/X line into an Optimus robot factory with a capacity of one million units.
Tesla’s Robotaxi fleet has surpassed 500 vehicles, operating across the Bay Area and Austin, with Musk noting a rapid monthly expansion pace. He also reiterated that CyberCab production is expected to begin in April, following a slow initial S-curve ramp before scaling beyond other vehicle programs.
Looking ahead, Tesla expects its capital expenditures to exceed $20 billion next year, thanks to the company’s operations across its six factories, the expansion of its fleet expansion, and the ramp of its AI compute. Additional investments in AI chips, compute infrastructure, and future in-house semiconductor manufacturing were discussed but are not included in the company’s current CapEx guidance.
More importantly, Tesla ended the year with a larger backlog than in recent years. This is supported by record deliveries in smaller international markets and stronger demand across APAC and EMEA. Energy backlog remains strong globally as well, though Tesla cautioned that margin pressure could emerge from competition, policy uncertainty, and tariffs.
Tesla is bringing closure to its flagship Model S and Model X vehicles, which CEO Elon Musk said several years ago were only produced for “sentimental reasons.”
The Model S and Model X have been light contributors to Tesla’s delivery growth over the past few years, commonly contributing only a few percentage points toward the over 1.7 million cars the company has handed over to customers annually since 2022.
However, the Model S and Model X have remained in production because of their high-end performance and flagship status; they are truly two vehicles that are premium offerings and do not hold major weight toward Tesla’s future goals.
On Wednesday, during the Q4 2025 Earnings Call, Musk confirmed that Tesla would bring closure to the two models, ending their production and making way for the manufacturing efforts of the Optimus robot:
“It is time to bring the Model S and Model X programs to an end with an honorable discharge. It is time to bring the S/X programs to an end. It’s part of our overall shift to an autonomous future.”
Musk said the production lines that Tesla has for the Model S and Model X at the Fremont Factory in Northern California will be transitioned to Optimus production lines that will produce one million units per year.
Tesla Fremont Factory celebrates 15 years of electric vehicle production
Tesla will continue to service Model S and Model X vehicles, but it will officially stop deliveries of the cars in Q2, as inventory will be liquidated. When they’re gone, they’re gone.
BREAKING: Tesla will wind down Model S and Model X production next quarter, Elon Musk confirms.
“It is time to bring the Model S and Model X programs to an end with an honorable discharge.” pic.twitter.com/Czn7aQjJE1
— TESLARATI (@Teslarati) January 28, 2026
Tesla has been making moves to sunset the two vehicles for the better part of one year. Last July, it stopped taking any custom orders for vehicles in Europe, essentially pushing the idea that the program was coming to a close soon.
Musk said back in 2019:
“I mean, they’re very expensive, made in low volume. To be totally frank, we’re continuing to make them more for sentimental reasons than anything else. They’re really of minor importance to the future.”
That point is more relevant than ever as Tesla is ending the production of the cars to make way for Optimus, which will likely be Tesla’s biggest product in the coming years.
Musk added during the Earnings Call on Wednesday that he believes Optimus will be a major needle-mover of the United States’ GDP, as it will increase productivity and enable universal high income for humans.
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
