Tesla has just committed billions of dollars to secure the artificial intelligence engines it believes will power its next generation of products, from self-driving cars to humanoid robots. The company is redirecting capital away from legacy vehicles and toward software,

The company’s chief executive, Elon Musk, said this week that it would stop making the car, an electric pioneer in 2012, as well as the Model X.

Tesla Inc. will spend over $20 billion on a dramatic reshuffling of factory lines reflecting Elon Musk’s repositioning of the carmaker coming off a multiyear sales slump.

The company announced it was ending production of its higher-end Model S and Model Y, and turning that production space over to making humanoid robots.

The automaker also said it would invest $2 billion in xAI, the artificial intelligence company controlled by its C.E.O., Elon Musk, and stop making the two oldest models in its lineup.

After almost 14 years in production, the Tesla Model S will be discontinued next quarter. This was Tesla’s first EV designed from the ground up, and it showed that fully electric cars could be fast and comfortable.

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