Tesla to Cease Model S and Model X Production, Focus on Robotics

Tesla has announced plans to discontinue production of its Model S sedan and Model X SUV by the end of the second quarter of 2026. CEO Elon Musk stated during the company's fourth-quarter earnings call that the decision aligns with Tesla's strategic shift towards autonomous technology and robotics.

"It's time to basically bring the Model S and X programs to an end with an honorable discharge," Musk said. "If you're interested in buying a Model S and X, now would be the time to order it."

Introduced in 2012 and 2015 respectively, the Model S and Model X have seen declining sales in recent years, accounting for less than 3% of Tesla's quarterly sales. The production lines for these models at Tesla's Fremont, California factory will be repurposed for the manufacturing of the company's Optimus humanoid robots.

"We’re really moving into a future that is based on autonomy," Musk added.

This move reflects Tesla's broader focus on advancing autonomous driving capabilities and developing humanoid robotics, areas where the company aims to lead in innovation and market presence.