Tesla has announced plans to cease production of the Model S and Model X by the second quarter of 2026, as confirmed by Elon Musk during a recent earnings call with investors.
Musk explained that this decision is aimed at reallocating resources at the Fremont factory to facilitate the manufacturing of Tesla's upcoming Optimus humanoid robot.
The Model S, introduced in 2012, is Tesla's flagship luxury sedan, while the Model X, which debuted in 2015, is known for its distinctive gull-wing doors. Sales of both models have shown a consistent decline, as the company pivots its focus towards the more popular Model 3 and Model Y.
In 2025, Tesla recorded sales of 50,850 vehicles categorized as "other models," which includes the Model S, Model X, and Cybertruck, marking a significant 40.2% drop compared to the previous year.
Musk's vision for Tesla is to transition from a traditional automotive manufacturer to a leader in self-driving technology and humanoid robotics. This ambitious shift has faced challenges, as indicated by a reported 61% decrease in profits for the fourth quarter.
Developing...