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Tesla Discontinues Model S and X to Focus on Optimus Robot Production
Luxury EVs to end production in Q2 2026 as Tesla shifts Fremont factory to manufacture 1 million humanoid robots annually.
Jan. 29, 2026 at 11:47am
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Tesla has announced it will discontinue production of its flagship Model S and Model X luxury electric vehicles in the second quarter of 2026. The company plans to pivot the Fremont factory to instead manufacture up to 1 million units per year of its Optimus humanoid robot. Tesla CEO Elon Musk cited the need to focus on the company's autonomous technology and robotics future as the reason for ending the S and X programs, which have seen declining sales in recent years as competitors have caught up.
Why it matters
The discontinuation of the Model S and X marks the end of an era for Tesla, as these vehicles were instrumental in establishing the company's credibility and transforming it from a startup into an automotive powerhouse. However, Tesla believes its future lies in autonomous driving and robotics, and is willing to sacrifice its luxury vehicle lineup to pursue these new opportunities.
The details
Tesla will cease production of the Model S and Model X in Q2 2026 in order to retool the Fremont factory to manufacture up to 1 million units per year of its Optimus humanoid robot. The company's luxury vehicles have seen sales decline in recent years as competitors like Lucid and Rivian have introduced more advanced electric sedans and SUVs. Despite a 2025 refresh, the aging Model S and X platforms have become technological dinosaurs compared to the competition. Tesla plans to unveil the Optimus 3, its first mass-production robot design, within 3 months.
- Tesla will discontinue Model S and X production in Q2 2026.
- Tesla plans to unveil the Optimus 3 robot design within 3 months.
The players
Elon Musk
CEO of Tesla, who announced the company's decision to end production of the Model S and X luxury EVs in order to focus on manufacturing Optimus humanoid robots.
Lucid Air
An electric luxury sedan that has outclassed Tesla's Model S in recent years.
Rivian R1S
An electric SUV that has made Tesla's Model X feel technologically outdated.
What they’re saying
“It's time to basically bring the Model S and X programs to an end with an honorable discharge, because we're really moving into a future that is based on autonomy.”
— Elon Musk
What’s next
Tesla plans to unveil the Optimus 3, its first mass-production humanoid robot design, within 3 months.
The takeaway
Tesla's decision to discontinue its flagship Model S and X luxury electric vehicles in order to focus on manufacturing Optimus humanoid robots represents a dramatic strategic shift for the company, as it trades its established presence in the premium EV market for the speculative future of autonomous robotics.
