Tesla CEO Elon Musk said Wednesday that the company will discontinue production of its Model S sedan and Model X SUV, reducing the lineup to three vehicles.

Tesla says its annual revenue has fallen for the first time as the electric vehicle (EV) maker shifts its focus to artificial intelligence (AI) and robotics.

On Tesla’s earnings call on Wednesday, Musk laid out a literal replacement of Tesla cars by robots – announcing Tesla would discontinue the Model S and Model X in favor of making more of its Optimus r...