Overview
Tesla signalled a new chapter, winding down its flagship Model S and X to make space for robots and autonomy. Investor chatter circled Musk’s wider empire and a decade-sized return at SpaceX. On the AI side, tools moved closer to real end-to-end work and even local desktop runs, while XPENG showed off a flying entrance. In US news, culture and politics intertwined with Nicki Minaj’s Trump nod, and city finances and fraud took centre stage in New York and Minnesota.
The big picture
Tesla retires Model S and X, making room for Optimus in 2026
Elon Musk used Tesla’s Q4 call to say Model S and X production will end in Q2 2026, with Fremont space repurposed for Optimus robots, targeting scale next. It follows a tough year and thin S/X volumes, and it sparked nostalgia along with concern that Tesla may concede luxury ground to Lucid and Porsche. The Optimus account leaned into the moment with a playful “the cars live on through me” clip.
Sequoia’s Shaun Maguire on a 10x SpaceX win and the wider Musk stack
Sequoia partner Shaun Maguire says the firm put about $1.2 billion into SpaceX since 2019, now marked near $12 billion with SpaceX valued around $800 billion. He outlines backing across SpaceX, xAI, Neuralink, The Boring Company, and X, plus ideas like space-based data centres and Starlink’s cost edge. The tone is clear, he thinks the market still underrates Musk.
AI dev tools grow up, from Lovable’s planning to local Kimi and Grok in French
Lovable claims a 71% jump on complex builds, showing deeper planning, automated browser testing, and prompt queuing as it assembles a Swedish learning app with auth and voice. On the hardware side, Alex Cheema ran Kimi K2.5 locally at 24 tok per second using two M3 Ultra Mac Studios linked by Thunderbolt 5, a reminder that strong models are inching into deskside territory. And in creative AI, Grok Imagine picked up a French prompt and produced an animation with fluent French speech.
XPENG’s flying entrance and targets for 2026-2028
XPENG CEO He Xiaopeng arrived at the annual conference in the X3 eVTOL from the Land Aircraft Carrier system, sharing cockpit footage of the tech park from above. He set goals for steady growth through safety-first engineering and clear differentiation, while nodding to the Year of the Horse and the industry race with rivals like Joby.
Nicki Minaj’s Trump embrace, plus a media tie-in
Nicki Minaj posted a TikTok from Donald Trump’s account that lauds her as the “Queen of Rap”, backing up her declaration that she is his “number one fan”. It is a bold stance that energises supporters and irks parts of hip hop. Katie Miller then teased a Minaj collab and podcast slot, folding the pop moment into conservative media.
City budgets under strain and a fraud exposé
New York Assembly Member Zohran Mamdani warned of a fiscal crunch akin to the Great Recession, arguing for internal savings and higher taxes on the wealthiest residents and the most profitable firms. Replies split between support and warnings about tax flight. In Minnesota, a viral video alleged large-scale Medicaid fraud centred in a single building with over 22 providers and hundreds of millions billed, tapping into wider concerns over oversight.
Elon Musk’s “far-right” list resurfaces
A clip of Musk listing priorities like safe cities, secure borders, and constitutional rights resurfaced, framed as his “controversial far-right views”. Most replies cheer the framing as common sense, others push back, keeping the debate live.
Why it matters
Tesla moving on from its premium originals marks a clear turn toward robotics and autonomy. That may dent prestige in the luxury car lane, yet it concentrates capital on software, robots, and full self-driving where Tesla sees its next margins.
Sequoia’s SpaceX mark-up shows why capital continues to chase private frontier tech, but it also underlines how most retail investors are boxed out until late. Expect louder calls for broader access if the returns keep stacking.
AI is getting more hands-on. Better planning and automated testing promise faster build cycles, while credible local runs hint at a world where teams keep work on-device for privacy and cost control. Creative tools that understand prompts beyond English widen who can participate.
XPENG’s eVTOL show and talk of safety and scale signal that air mobility is edging from sizzle to systems work. Certification pace will shape who leads, and China’s speed could matter.
Culture is colliding with politics in full view. High-profile endorsements carry reach, but they also polarise, which can redraw media alliances and voter coalitions.
US city finances look tight. Between recession-scale warnings and fraud headlines, 2026 may see harder choices on taxes, audits, and public services. The political fight will be over who pays and what gets cut.
Through it all, Musk remains a focal point, from cars to rockets to politics, and that gravity continues to move money, talent, and attention his way.
