Tesla Ends Production of Model S and X

Musk says it's time to 'bring the Model S and X programs to an end' as Tesla shifts focus to new ventures

Jan. 30, 2026 at 1:31am

Got story updates? Submit your updates here. ›

Tesla CEO Elon Musk announced on the company's Q4 earnings call that the automaker will be ending production of its flagship Model S sedan and Model X SUV. Musk cited several reasons for the decision, including the models' declining financial contribution, the need to retool the Fremont factory for Optimus robot production, and Tesla's pivot towards autonomy and robotaxi development.

Why it matters

The discontinuation of the Model S and X marks the end of an era for Tesla, as these models were instrumental in establishing the company and proving the viability of electric vehicles. However, Musk believes Tesla's future lies in autonomous driving and robotics, signaling a major strategic shift for the company.

The details

The Model S and X, which start at $95,000 and $100,000 respectively, now account for less than 5% of Tesla's overall revenue. With the EV market becoming more competitive and prices dropping, these legacy models have become less financially viable for the company. Additionally, Tesla plans to retool its Fremont factory to begin production of the Optimus humanoid robot, which Musk believes could eventually reach one million units per year. Finally, Musk is doubling down on Tesla's autonomous driving and robotaxi efforts, moving the company's focus away from its traditional electric vehicle business.

  • On January 30, 2026, Tesla CEO Elon Musk announced the end of production for the Model S and X during the company's Q4 earnings call.

The players

Elon Musk

The eccentric and unpredictable CEO of Tesla, known for making bold business decisions.

Tesla

An American electric vehicle and clean energy company that has been a pioneer in the EV industry.

Model S

Tesla's luxury sedan that starts at $95,000.

Model X

Tesla's luxury electric SUV that starts at $100,000.

Optimus

Tesla's humanoid robot that the company plans to produce at its Fremont factory.

Got photos? Submit your photos here. ›

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, Tesla

What’s next

Tesla will begin retooling its Fremont factory to start production of the Optimus humanoid robot, which Musk believes could eventually reach one million units per year.

The takeaway

Tesla's decision to discontinue the Model S and X signals a major strategic shift for the company, as it pivots away from its traditional electric vehicle business and towards autonomous driving and robotics. This move reflects Musk's bold, all-in approach to new technologies, even if it means sacrificing legacy products that helped establish Tesla as a leader in the EV industry.