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Tesla Discontinues Model S and X to Focus on Robots
The electric vehicle pioneer shifts production to humanoid Optimus robot as it sees a future beyond cars.
Jan. 28, 2026 at 7:23pm
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Tesla has announced it will discontinue production of its flagship Model S and Model X electric vehicles next quarter to make room for the development and manufacturing of its Optimus humanoid robot. The move signals a strategic shift by the company towards automation, robotics, and a future where vehicles are increasingly autonomous. While the discontinuation of the pioneering Model S and X marks the end of an era, it underscores Tesla's ambitions beyond electric cars and towards a future dominated by intelligent machines.
Why it matters
Tesla's decision to pivot away from the Model S and X reflects a broader industry trend of EV manufacturers scaling back production and focusing on more affordable, mass-market models. It also highlights Tesla's long-term vision of a future centered around robotics and autonomous systems, which the company believes will have a greater impact than traditional automobiles.
The details
Tesla plans to ramp up production of its Optimus humanoid robot, with a goal of manufacturing 1 million units annually. The company sees Optimus as a way to handle repetitive, dangerous, or mundane tasks, freeing up human capital for more creative endeavors. This shift aligns with the broader surge in demand for robotics across industries, from manufacturing and logistics to healthcare and elder care.
- Tesla will discontinue the Model S and X next quarter.
- Tesla aims to produce 1 million Optimus robots annually.
The players
Tesla
An American electric vehicle and clean energy company that designs and manufactures electric cars, battery energy storage from home to grid-scale, solar panels, and related products.
Optimus
Tesla's humanoid robot that is designed to perform repetitive, dangerous, or mundane tasks, potentially across various industries.
Elon Musk
The CEO and co-founder of Tesla, who has been a driving force behind the company's shift towards robotics and automation.
Boston Dynamics
An American engineering and robotics design company that has been heavily invested in the development of humanoid robots.
Figure AI
A robotics company that is also working on the development of humanoid robots.
What they’re saying
“We must prioritize a technology Tesla believes will be far more impactful than cars in the long run.”
— Elon Musk, CEO and Co-founder
What’s next
Tesla plans to ramp up Optimus robot production to 1 million units annually, a highly ambitious goal that will require significant investment and technological advancements.
The takeaway
Tesla's shift away from the Model S and X towards Optimus robots signals a bold strategic move that goes beyond electric vehicles. The company is positioning itself as a leader in the robotics and automation revolution, betting that intelligent machines will have a greater impact on the future than traditional automobiles.
