Tesla has reported its first annual fall in revenue as the electric carmaker accelerates a strategic shift away from legacy vehicle models and towards artificial intelligence and robotics. Tesla also confirmed it will end production of its Model S and Model X, two of its longest-running vehicles. In January, China’s BYD overtook Tesla as the world’s largest EV maker by sales, while analysts have warned that Tesla’s vehicle line-up has begun to look dated. Tesla also disclosed a $2bn (£1.45bn) investment in xAI, the AI venture founded by chief executive Elon Musk. Jessica Caldwell, head of insights at Edmunds, said the decision to drop the Model S and X was not unexpected.