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Tesla Halts Model S and X Production to Focus on Robots
Elon Musk announces the end of Tesla's flagship sedans to make way for Optimus humanoid robot manufacturing.
Jan. 28, 2026 at 7:47pm
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Tesla CEO Elon Musk has announced that the company will 'basically stop the production' of its Model S and X electric vehicles next quarter. Musk cited the need to shift focus to the development and manufacturing of the Optimus humanoid robot as the reason for discontinuing the flagship sedan and SUV models. The Model S and X have been in production since 2012 and 2015 respectively, but their sales have declined in recent years as the newer Model 3 and Y have become Tesla's top sellers.
Why it matters
The discontinuation of the Model S and X marks a significant shift in Tesla's product strategy, as the company pivots away from its traditional electric vehicle lineup to concentrate on the development of advanced robotics. This move underscores Musk's long-term vision for Tesla to become a leader in autonomous technology beyond just self-driving cars.
The details
Tesla plans to convert the production space at its Fremont factory that was previously used for the Model S and X into a facility for manufacturing the Optimus humanoid robot. Musk has set a goal of being able to produce 1 million Optimus robots in this space. The company also recently invested $2 billion into Musk's other venture, xAI, which has raised concerns among some Tesla shareholders about potential conflicts of interest.
- Tesla will 'basically stop the production' of the Model S and X next quarter.
- The Model S has been in production since 2012, while the Model X has been produced since 2015.
- In 2025, Tesla delivered 1,585,279 Model 3 and Y vehicles, but only 418,227 Model S and X units.
The players
Elon Musk
The CEO of Tesla who announced the discontinuation of the Model S and X in order to focus the company's resources on the development and production of the Optimus humanoid robot.
Tesla
An American electric vehicle and clean energy company that is shifting its focus from traditional electric vehicles to advanced robotics, including the Optimus humanoid robot.
Optimus
Tesla's humanoid robot that the company plans to start selling to the public by the end of next year, with the goal of being able to manufacture 1 million units in the current Model S and X production space.
xAI
Elon Musk's other company that Tesla has invested $2 billion into, raising concerns among some Tesla shareholders about potential conflicts of interest.
What they’re saying
“It's time to bring the Model S and X program to a end with an honorable discharge, because we're really moving into a future that's based on autonomy.”
— Elon Musk, CEO, Tesla
“Tesla's long-term goal is to be able to manufacture 1 million Optimus robots in the current Model S and X production space.”
— Elon Musk, CEO, Tesla
What’s next
Tesla plans to start selling the Optimus humanoid robot to the public by the end of next year.
The takeaway
Tesla's decision to discontinue the Model S and X in order to focus on the development and production of the Optimus humanoid robot represents a significant shift in the company's product strategy, as it moves beyond traditional electric vehicles and into the realm of advanced robotics. This move underscores Elon Musk's long-term vision for Tesla to become a leader in autonomous technology.
