Tesla has made a significant announcement during its Q4 2025 earnings call, confirming that the Model S and Model X, the company’s longest-running electric vehicles, will be discontinued by the end of the second quarter of 2026. This decision marks a pivotal moment for Tesla as it shifts its focus from being a traditional automaker to a company centered around “Physical AI” and humanoid robotics.
Elon Musk, CEO of Tesla, revealed that the Fremont factory in California, where the Model S and Model X are currently manufactured, will undergo a transformation to produce Optimus, Tesla’s humanoid robot, on a large scale. The company aims to produce one million Optimus units annually at the Fremont site alone, with even higher production targets set for Giga Texas.
Musk emphasized the emotional but necessary nature of this shift, stating that it is time to bring the Model S and Model X program to an end in order to align with Tesla’s vision of an autonomous future. He described Tesla as a conglomerate of “dozen startups in one,” with robotics being the primary focus. Musk envisions a future where Tesla’s legacy as a car manufacturer fades into the background as the company delves deeper into the realm of AI and robotics.
The Model S, introduced in 2012, and the Model X, launched in 2015, were groundbreaking vehicles that showcased the potential of electric vehicles in the luxury and performance segments. However, their sales have dwindled in recent years, accounting for less than 3% of Tesla’s total deliveries in late 2025. Musk acknowledged the significance of the flagships in establishing the EV concept but emphasized that Tesla’s priority now lies in autonomy rather than traditional vehicle manufacturing.
Existing owners of the Model S and Model X will continue to receive service and parts support, while new custom orders are expected to close soon as the factory transitions to robotics production. As the era of the Model S and Model X draws to a close, all eyes are on Optimus as it prepares to take over the Fremont factory and usher in a new chapter for Tesla.
This move by Tesla signifies a bold and strategic shift towards a future driven by AI and robotics, setting the stage for innovation and advancement in the field of autonomous technology. As the automotive industry evolves, Tesla’s decision to pivot towards robotics reflects the company’s commitment to pushing boundaries and leading the way in the era of automation.