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Tesla Ends Production of Model S and X to Focus on Robots
Elon Musk announces the iconic luxury vehicles will be phased out to make way for Optimus robot production.
Jan. 29, 2026 at 2:55pm
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Tesla is ending production of its flagship Model S sedan and Model X SUV in the coming months, CEO Elon Musk announced during the company's latest earnings call. The Fremont, California factory that currently builds those vehicles will be converted to produce the Optimus humanoid robot, with Musk aiming for 1 million units per year.
Why it matters
The Model S and X have been Tesla's halo products since their respective launches in 2012 and 2015, helping establish the company's brand and technology. Their discontinuation signals a major strategic shift as Tesla pivots towards industrial and consumer robotics, which Musk sees as a massive growth opportunity.
The details
Musk said it's "time to basically bring the Model S and X programs to an end with an honorable discharge." Production will wind down over the next several months, with the factory transitioning to Optimus robot manufacturing. The more affordable Model 3 and Model Y will remain Tesla's core consumer vehicle offerings, accounting for 97% of 1.59 million deliveries in 2025.
- Tesla will end production of the Model S and X sometime in the second quarter of 2026.
- The Model S was launched in 2012, while the Model X debuted in 2015.
The players
Elon Musk
CEO of Tesla, who announced the end of the Model S and X production and the company's shift towards robot manufacturing.
Tesla
An American electric vehicle and clean energy company that is transitioning its Fremont factory from producing the Model S and X luxury vehicles to manufacturing the Optimus humanoid robot.
What they’re saying
“It's time to basically bring the Model S and X programs to an end with an honorable discharge.”
— Elon Musk, CEO
What’s next
Tesla plans to ramp up Optimus robot production at the Fremont factory, aiming to manufacture 1 million units per year.
The takeaway
Tesla's shift away from the iconic Model S and X signals the company's ambitions to dominate the emerging robotics market, as Elon Musk believes the Optimus robot represents a greater growth opportunity than the luxury sedan and SUV segments.
