Tesla Discontinues Model S and X, Shifts to Optimus Robots

Fremont factory to pivot production from luxury EVs to humanoid robots as Tesla CEO Elon Musk says the Roadster will 'debut in April'.

Jan. 29, 2026 at 4:39pm

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Tesla will discontinue production of its Model S and Model X luxury electric vehicles next quarter and shift the Fremont, California plant to manufacturing Optimus humanoid robots instead, CEO Elon Musk announced during the company's Q4 2025 earnings call. Musk said the only non-autonomous vehicle Tesla will make going forward is the Roadster, which he hopes to debut in April.

Why it matters

This move represents a major strategic shift for Tesla, as the company looks to expand beyond its core electric vehicle business and into the potentially lucrative humanoid robot market. The discontinuation of the Model S and X also signals that Tesla sees more growth potential in its newer, more affordable models like the Model 3 and Y, as well as autonomous driving technology and robotics.

The details

Tesla will cease production of the Model S and Model X at its Fremont factory, which was previously a joint GM-Toyota plant, and pivot the facility to manufacturing Optimus robots. Musk said Tesla's ultimate goal is to build 1 million Optimus robots per year at Fremont, though the ramp-up will be slow due to supply chain challenges. The only non-autonomous vehicle Tesla will continue to produce is the Roadster, which Musk hopes to debut in April.

  • Tesla will discontinue the Model S and Model X next quarter.
  • Tesla is hoping to debut the Roadster in April.

The players

Elon Musk

The CEO of Tesla who announced the company's plans to discontinue the Model S and Model X in favor of producing Optimus humanoid robots.

Tesla

An American electric vehicle and clean energy company that is shifting its Fremont factory production from luxury EVs to humanoid robots.

Optimus

Tesla's humanoid robot that the company plans to manufacture at the Fremont factory, with a goal of producing 1 million units per year.

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What they’re saying

“It's time to basically bring the Model S and X programs to an honorable discharge.”

— Elon Musk, CEO

“Hopefully the Roadster will be something out of this world.”

— Elon Musk, CEO

What’s next

Tesla is hoping to debut the Roadster in April, according to Musk.

The takeaway

Tesla's shift from luxury electric vehicles to humanoid robots signals the company's ambitions to expand beyond its core automotive business and capitalize on the potentially lucrative robotics market, though the transition may face supply chain challenges.