The report shows the company's first-ever annual revenue decline, with sales falling in three of the last four quarters.
The models that are being discontinued are among the company's oldest vehicles, and their prices have been slashed as competition in the electric car market has increased. Tesla's more popular Model 3 and Model Y accounted for 97 percent of the company's 1.6 million deliveries last year.
The Fremont, California, factory will now be used to develop the humanoid robot, Optimus. Tesla expects to hire more employees and significantly increase production at the factory. The company aims to introduce a new version of the robot this quarter.
