Tesla to Stop Production of S and X Models, Shift to Robots

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Tesla CEO Elon Musk announced that the company will begin phasing out production of its Model S and Model X electric vehicles this year, in order to retool a California factory to produce humanoid robots instead. The announcement signals the end of an era for the two vehicles that helped propel Tesla into the mainstream and make it the world's most valuable automaker.

Why it matters

The discontinuation of the Model S and X marks a significant shift in Tesla's strategy, as the company moves away from its flagship electric vehicles to focus on autonomous driving technology and humanoid robots. This decision reflects Musk's vision for Tesla's future, which prioritizes the development of advanced robotics over traditional automobile manufacturing.

The details

Musk said Tesla will wind down S and X production next quarter and essentially stop production, though the company will continue to support the vehicles for existing owners. The Fremont, California factory that currently produces the S and X models will be converted to manufacture the planned Optimus line of humanoid robots, which are not yet on the market.

• Tesla will begin phasing out Model S and X production next quarter.
• Tesla will essentially stop production of the S and X models as part of this shift.

What they’re saying

What’s next

Tesla plans to convert its Fremont, California factory from an auto plant into the manufacturing site for the planned Optimus line of humanoid robots.