Tesla has discontinued the Model S and Model X, shifting focus to the Optimus humanoid robot, robotaxi and full self‑driving technology. Discover the details now!
End of an Era: Model S and Model X Production Ceases
After more than 14 years of continuous production, Tesla announced that it will halt the manufacture of its flagship luxury electric sedans, the Model S and Model X. CEO Elon Musk framed the move as a “dignified retirement” for the two models that helped put long‑range EVs on the map.
Why the Change? A Slip in Revenue and a New Vision
For the first time since its 2003 founding, Tesla reported a year‑over‑year drop in total revenue. In the fourth quarter of 2025, automotive revenue fell 11% versus the previous quarter and 10% versus the same period in 2024, pulling overall revenue down 3%.
Facing a 48% cut in output for the “other models” segment—which primarily includes the Model S and X—Tesla is reallocating capacity at the Fremont plant to support the development of its humanoid robot, Optimus.
Shifting Resources: Optimus, Robotaxis and Full‑Self‑Driving
Musk emphasized that the long‑term value of Tesla will come from three pillars beyond traditional car sales: the Optimus humanoid robot, a fleet of robotaxis, and the Full Self‑Driving (FSD) autonomous‑driving system.
While Optimus is still in the research‑and‑development phase—currently able to perform only basic “factory‑floor” tasks—Musk believes it will eventually become a core revenue generator.
Impact on Customers and Markets
The company has already limited new orders for the Model S and Model X in China and Europe beginning in early 2025, urging interested buyers in the United States to place orders quickly before stocks run out.
What Happens to Fremont?
Production lines that once churned out the luxury EVs will be repurposed for robot manufacturing. In parallel, Tesla disclosed plans for a new U.S. semiconductor fab to produce AI‑5 chips that will power its future AI‑driven applications, although this project is not part of the current $20 billion capital budget.
Looking Ahead: The Next Roadster
Amid the strategic pivot, Musk promised that a new generation of the Tesla Roadster is slated for an April 2026 launch. Given the vehicle’s history of delays, analysts remain cautious about the timeline.
Bottom Line
By retiring the Model S and Model X, Tesla is signaling a bold shift from premium electric cars to a diversified tech portfolio centered on robotics and autonomous mobility. The outcome will hinge on whether Optimus and robotaxi services can deliver the promised value.