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Tesla to Halt Model S, Model X Production, Shift Focus to Optimus Robots
The automaker will repurpose its Fremont factory to manufacture its humanoid robot instead of its flagship sedan and SUV.
Jan. 29, 2026 at 4:47pm
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Tesla announced it will discontinue production of the Model S sedan and Model X SUV at the end of the next quarter as the company shifts its focus to developing its Optimus humanoid robot. CEO Elon Musk said the move is part of Tesla's plan to become a leader in AI and robotics, with the Fremont factory being retooled to manufacture the Optimus robot instead.
Why it matters
The Model S and Model X have been critical to Tesla's success since their debuts, but sales have been eclipsed by the more affordable Model 3 and Model Y. By discontinuing the aging flagship models, Tesla aims to dedicate more production capacity to its ambitious Optimus robot project, which the company sees as key to its future in autonomous technology and AI.
The details
Tesla will halt production of the Model S and Model X at the end of the next quarter. The Fremont factory, which Tesla purchased from Toyota in 2010, has been the production site for the Model S since 2012 and the Model X since 2015. While the two models have been important to Tesla's current market position, their sales have been surpassed by the more popular and affordable Model 3 and Model Y. By discontinuing the Model S and Model X, Tesla will have more capacity to focus on manufacturing its Optimus humanoid robot, which CEO Elon Musk has touted as critical to the company's future in AI and autonomous technology.
- Tesla will halt production of the Model S and Model X at the end of the next quarter.
- The Model S was first introduced in 2012, while the Model X debuted in 2015.
The players
Tesla
An American electric vehicle and clean energy company that designs and manufactures electric cars, battery energy storage from home to grid-scale, solar panels and related products.
Elon Musk
The CEO of Tesla, who has announced the company's plans to shift focus from electric vehicles to AI and robotics, including the development of 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, because we're really moving into a future that is based on autonomy.”
— Elon Musk, CEO
What’s next
Tesla plans to invest $2 billion into its xAI venture, which the company says will be critical for its mission to become an AI leader. The automaker also recommitted itself to the Cybercab program, though Musk's claims about the autonomous robotaxis' progress remain optimistic.
The takeaway
Tesla's decision to discontinue the Model S and Model X in favor of focusing on its Optimus humanoid robot project signals a major shift in the company's priorities, moving away from its traditional electric vehicle business and towards a future centered on AI and autonomous technology.
