Tesla to Discontinue Model S and Model X to Focus on Robotics
Tesla announces the end of Model S and Model X production by mid-2026, shifting focus to AI and robotics initiatives.
Tesla has announced plans to cease production of its Model S sedan and Model X SUV by the end of the second quarter of 2026. CEO Elon Musk revealed during the company's Q4 2025 earnings call that the Fremont, California, factory space currently dedicated to these models will be repurposed for manufacturing the Optimus humanoid robot.
The Model S, introduced in 2012, and the Model X, launched in 2015, have seen declining sales in recent years. In 2025, Model S deliveries fell to 5,889 units, a 52.6% decrease from the previous year, while Model X deliveries dropped 34.2% to 13,066 units.
Musk emphasized the company's strategic shift towards artificial intelligence and robotics, stating that the Optimus robot, Robotaxis, and Full Self-Driving (FSD) technology will be Tesla's key value drivers beyond traditional automotive manufacturing.
This move aligns with Tesla's broader goal of advancing autonomous technologies and reflects a significant pivot in the company's focus. The Optimus robot project, initiated in 2022, is expected to reach its third generation soon, with improvements allowing the robot to learn by observing human behavior.
Source
The VergeFirst reported
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