According to Sawyer Merritt, Tesla is strategically evolving its product lineup by prioritizing cost control, scalability, and future monetization through services powered by its proprietary AI software (source: Sawyer Merritt, Twitter, Oct 22, 2025). The company’s focus is on leveraging existing production capacity and optimizing operations, rather than rapidly expanding with new factories. This AI-driven approach is designed to boost sales volumes through differentiated, efficiently managed products, and to unlock new revenue streams in automotive and mobility services. This strategy positions Tesla to capitalize on AI-based recurring revenue opportunities such as autonomous driving, fleet services, and software subscriptions, enhancing its competitive edge in the AI-powered automotive market.