The Model S and X are Tesla’s flagship products. Not only do both have a proven market, but until the Roadster comes out, these are the vehicles kids and young enthusiasts swoon over. Building them may well boost Model Y and 3 sales. Only short-sighted car companies cut all their halo products. But that’s the crux of the problem.

Tesla dominated the electric vehicle industry by the mid-2010s with sleek, fast cars that helped combat the public perception that EVs were severely limited by short ranges.

Tesla said the investment aligns with its long-term strategy under “Master Plan Part IV,” which aims to integrate artificial intelligence into physical products and services.