Tesla ends Model S and Model X production to make way for Optimus humanoid robots
24 Sources
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Tesla Sunsetting Model S and X Next Quarter to Refocus on Optimus Robot
Tesla sends the Model S and Model X to live on a farm upstate, canceling its two longest-running EVs to make way for an autonomous, robotic future. Tesla is putting the brakes on production of the Model S and Model X. The automaker plans to end production of the large, electric sedan and SUV next
[2]
Tesla throws in the towel on car sales
Is Tesla still a car company? It's a question we've been asking ourselves more frequently over the past year, especially as the company's car business shrinks and Elon Musk continues to push the message that Tesla should be seen more as an AI and robotics leader and less so as a mere seller of
[3]
Tesla to Stop Making Model S and X, Plans to Focus on Optimus Robots
With over a decade of experience reporting on consumer technology, James covers mobile phones, apps, operating systems, wearables, AI, and more. Tesla is discontinuing some of its most iconic vehicles over the next six months. The electric car brand used its latest earnings results to tell
[4]
Tesla is killing off its Model S and X cars to make robots
Tesla will "basically stop the production" of its Model S and X electric vehicles next quarter, CEO Elon Musk has announced at the automaker's earnings call for the 2025 fiscal year. "It's time to bring the Model S and X program to a end with an honorable discharge, because we're really moving into
[5]
Tesla Just Killed the Most Important Car of the 21st Century
Before Elon Musk, most electric vehicles seemed less like an alternative to gasoline than an argument in its favor. The sad state of affairs for EVs for many years was that they were slow, impractical, and largely enticing only if you lived with copious guilt over your carbon emissions. Then Tesla
[6]
Tesla to phase out Model S and Model X so it can focus on robots
Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. What just happened? Tesla's Fremont, California, factory - once home to the Model S and Model X - will soon build humanoid robots instead of cars. Elon Musk confirmed during Tesla's fiscal 2025
[7]
Tesla sees first annual revenue drop as it shifts to AI and robots
Tesla says its annual revenue has fallen for the first time as the electric vehicle (EV) maker shifts it focus to artificial intelligence (AI) and robotics. The company, which is run by multi-billionaire Elon Musk, reported a 3% decline in total revenues in 2025, while profits fell 61% in the last
[8]
Tesla is veering away from its legacy EVs toward building robots
The Optimus bot is being designed to help with household chores and manufacturing tasks, and is expected to cost $30,000 each Tesla just wrapped up its earnings call for the 2025 fiscal year, in which it recorded that its year-on-year profits dropped by nearly half. Its GAAP net income came to
[9]
Elon Musk to end Model S and Model X as Tesla targets 1 million humanoid robots yearly
Tesla signaled a major shift in its business as CEO Elon Musk told investors the company will end production of its longest-running premium electric vehicles. During a Wednesday investor call, he said the automaker will discontinue the Model S sedan and Model X SUV, marking a decisive move away
[10]
'It's an awesome robot. It looks like a human. People could be easily confused that it's a human' -- Tesla exec on why Optimus 3 is a game changer
Lost among the shock news that Tesla would be shifting away from Model S and Model X production to building a million robots a year in its Fremont factory were the company's wild aspirations and promises for its upcoming Optimus 3 humanoid robot. Built on the same Full Self Driving technology
[11]
Elon Musk Shutting Down Tesla Car Factory to Manufacture Robots Instead
Tesla CEO Elon Musk has made good on his threats to steer his EV maker away from his core business to focus instead on AI and its humanoid robot, Optimus. During the company's fourth-quarter earnings call this week, the mercurial CEO announced that "it's time to basically bring the Model S and X
[12]
Tesla reveals $2 billion investment in Elon Musk's xAI and officially kills the Model S and Model X | Fortune
The moves, remarkable even in the context of Musk's unfettered management style, underscore the profound transformation underway at the car maker as it loses ground in the EV market to Chinese rivals. In place of the discontinued car models, Musk said that Tesla will use the freed up factory space
[13]
The Tesla Model S And X Are Dying Next Quarter To Make Room For Robots
It's the end of the road for two of Tesla's longest-running electric vehicles. The Model S sedan and Model X SUV will be discontinued next quarter, CEO Elon Musk said on the company's earnings call on Wednesday. Tesla plans to convert the space at its Fremont, California, factory where the Model S
[14]
Tesla discontinues flagship EV models in Optimus robot and AI U-turn
Elon Musk's electric vehicle company is trading two of its models for a new model: The humanoid robot kind. Tesla will discontinue two of its electric vehicle models and instead focus on the production of its upcoming Optimus humanoid robot, in the clearest sign that Elon Musk's company is
[15]
Tesla is no longer an EV company - Elon Musk says pioneer has killed off the Model S and Model X to make room for robots
Elon Musk used Tesla's quarterly earnings call to announce that the company will stop producing the Model S sedan and Model X SUV later this year, stating that the move would free up space at its Fremont, California factory to produce the Optimus humanoid robot. Launched in 2012, the Model S
[16]
Tesla axes EV models in drive for robotics revenue
Investors liked what they heard about the future following the company's latest results, but Elon Musk is under huge pressure to deliver on his vision as a series of targets have been missed. Tesla is to axe production of two electric vehicle (EV) models as part of a shift towards robotics after
[17]
Tesla to scrap S and X models to make room for Musk's robots
London | San Francisco | Tesla on Wednesday (Thursday AEDT) said it will scrap its S and X models and invest $US2 billion ($2.8 billion) into Elon Musk's xAI as the company shifts focus from cars to AI and robotics, after reporting its first-ever fall in annual profits. Revenue decreased by 3 per
[18]
Elon Musk Just Slashed 2 of Tesla's Car Models to Double Down on Robots
"If you're interested in buying a model S and X, now would be the time to order it, because we expect to wind down S and X production next quarter," he said, adding that, "we'll obviously continue to support the model S and X programs for as long as people have the vehicles." The Optimus is
[19]
Tesla parks models S and X to bet big on humanoid robots
Tesla is phasing out its Model S and Model X electric cars. Production is expected to end soon. This move frees up factory space for Optimus, Tesla's humanoid robot. Elon Musk believes robots will become the company's main business. Customers interested in these models should order now. Owners will
[20]
Tesla is ditching car models to focus more on robots and AI
The Model S and Model X vehicles will soon be out of production. Elon Musk's Tesla has shared its latest financial results, and while we'll get to the figures in a moment, right now the key bit of information for anyone thinking this company is still a car brand is that it'll soon be shifting more
[21]
Elon Musk Says Tesla Model S, X Production To End, Cybertruck To Transition To An Autonomous Vehicle With Fleet Future: 'It's Time To Bring...' - Tesla (NASDAQ:TSLA)
Tesla Inc. (NASDAQ:TSLA) will stop producing the Model S, as well as the Model X, CEO Elon Musk confirmed during the company's fourth-quarter earnings call. Tesla Ends Model S, Model X Production During Tesla's Q4 earnings call on Wednesday, Musk relayed the news to investors and analysts that
[22]
Elon Musk's Tesla halts production of Model X, Y to focus on 'autonomous future' in 2026
Tesla will halt production of the Model X and Model S, two of their most popular models. Elon Musk announced on Wednesday that Tesla will halt production of the Model X and Model S, two of their most popular models, to focus on the "autonomous future." The announcement was made as part of the Q4
[23]
Elon Musk says Tesla ending production of Model X and Model S, shifting toward humanoid robots
LOS ANGELES -- Tesla plans to more than double capital spending to a record high of more than US$20 billion this year - but little of it will go to its traditional business of selling electric vehicles to human drivers. The company, which last year lost its global EV sales crown to China's BYD, is
[24]
Numbers don't lie. Why Tesla is trading S and X lines for Optimus By Investing.com
Investing.com -- In Tesla's earnings call on Wednesday Elon Musk told analysts the company will stop selling its Model S sedans and Model X SUVs. These cars once defined the company's early success but now account for a small share of revenue. Tesla Inc (NASDAQ:TSLA) is pivoting from EV to AI and
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Tesla will stop producing its Model S sedan and Model X SUV next quarter, ending production of its two longest-running electric vehicles. CEO Elon Musk announced the decision during the company's earnings call, stating it's part of a strategic shift to an autonomous future. The Fremont factory will be repurposed for manufacturing Optimus humanoid robots, with plans to produce 1 million units annually.
Tesla Discontinues Its Flagship Electric Vehicles
Tesla is discontinuing production of Model S and Model X next quarter, effectively retiring the electric sedan and SUV that helped establish the company as a premium EV leader
1
. CEO Elon Musk confirmed the decision during the company's earnings call with investors, describing it as "slightly sad" but necessary for the automaker's evolution1
. The Model S, which launched in 2012, and the Model X, introduced in 2015, represented a turning point for electric vehicles, proving that EVs could compete with luxury brands like BMW and Mercedes-Benz5
.
Source: InsideEVs
The decision comes as both vehicles have become increasingly marginal to Tesla's business. Together, the Model 3 and Model Y accounted for roughly 97% of Tesla's 1.6 million vehicle deliveries in 2025
1
. For the entirety of 2025, Tesla delivered 1,585,279 Model 3 and Y vehicles but only sold 418,227 Model S and X units4
. Current owners will continue to receive support "for as long as people have the vehicles," Musk assured during the earnings call3
.Strategic Shift to an Autonomous Future and AI Company
The move signals a dramatic strategic shift to an autonomous future as Tesla repositions itself away from traditional car manufacturing. "It's time to bring the S and X programs to an end with an honorable discharge, because we're really moving into a future that is based on autonomy," Musk explained
3
. This transition into a physical AI company reflects Tesla's broader ambitions beyond vehicle sales1
.
Source: Inc.
During the earnings call, a top Tesla executive described the company as "transportation as a service" rather than a traditional automaker
2
. Musk doubled down on this vision, predicting that "the vast majority of miles traveled will be autonomous in the future" and that "probably less than 5 percent of miles driven will be where somebody's actually driving the car themselves in the future, maybe as low as 1 percent"2
. He went further, stating that "long-term... the only vehicles that we'll make will be autonomous vehicles"2
.The pivot from car manufacturer is evident in Tesla's financial performance. In 2025, Tesla brought in $94.8 billion in revenue, with $69.5 billion—or 73 percent—coming from car sales
2
. However, automotive revenues have been in free fall, down 10 percent year over year, while other revenue streams including energy generation and storage are growing2
.Fremont Factory Repurposed for Manufacturing Optimus
The Fremont factory in California, where phasing out older EV models currently takes place, will be repurposed for manufacturing Optimus humanoid robots
1
. Musk claims Tesla will ramp up production to 1 million Optimus units per year, though the humanoid robot is not yet available for sale1
.Tesla confirmed it plans to unveil a third-generation version of the Optimus robot in the coming months, describing it as the first designed for mass production with "major upgrades from version 2.5, including our latest hand design"
3
. Musk has previously stated that Tesla aims to begin producing Optimus units at scale by the end of 2026 and begin selling them in 20273
.
Source: TechRadar
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Focus on Autonomy and Robotics Raises Questions
Tesla's intensified focus on autonomy extends beyond robotics to its Full Self-Driving (FSD) technology. For the first time, the company disclosed 1.1 million active Full Self-Driving (Supervised) subscriptions, which Musk claimed represented a 38 percent increase over the fourth quarter 2024
2
. Musk recently announced that Tesla would stop selling FSD as a standalone package and shift to subscription only, signaling the company's bet on recurring revenue2
.The CEO predicted that robotaxis will be available in "dozens" of US cities this year, though he has fallen short of previously stated expansion plans
2
. This leader in AI and robotics positioning comes as Tesla lost its title as the global leader in EV sales to BYD, and the company saw an 11% year-over-year drop in car sales in 20253
2
.Shareholders Back Musk's Vision Despite Risks
The strategic pivot has been enabled by Tesla's board and shareholders, who approved Musk's $1 trillion pay package in late 2025
4
. Under the deal, Musk would need to meet ambitious milestones including producing over a million robots, a million robotaxis, and creating $7.5 trillion in value for shareholders2
. Notably, the vehicle sales milestone requires Tesla to sell just 1.2 million cars a year over the next decade on average—a half-million fewer cars per year than Tesla sold in 20242
.The earnings report also revealed that Tesla invested $2 billion in xAI, Musk's other AI company
4
. Tesla's shareholders notably sued Musk in 2024 for starting xAI, arguing it represents direct competition to the automaker4
. Yet shareholders continue to support his vision, even as the Cybertruck and other vehicle programs struggle to gain traction.The Model S pioneered the concept of cars as gadgets, introducing software updates that could improve vehicles over time—a feature now standard across the industry
5
. As Jake Fisher from Consumer Reports noted, "EVs went from 'eating your vegetables' to getting you super-car performance in a vehicle that's luxurious and quiet"5
. Now, as Tesla walks away from the business it helped create, the company bets its future on unproven robotics technology while competitors like BYD, Geely, and Xiaomi dominate the EV market it once led.References
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