Tesla to Discontinue Model S and Model X

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In a surprise announcement during Tesla's Q4 2025 Earnings Call, Elon Musk revealed that the company will be discontinuing production of the iconic Model S and Model X vehicles by the end of the second quarter of 2026. The decision is driven by Tesla's pivot towards autonomy and the need for more factory space to ramp up production of the Optimus humanoid robot.

Why it matters

The Model S and Model X were pivotal in defining the modern electric vehicle era, proving that EVs could be desirable and technologically advanced. However, their sales have dwindled in recent years as Tesla has focused on more affordable and higher-volume models like the Model 3 and Model Y. This move signals Tesla's strategic shift towards autonomous driving and robotics, which Musk believes will be key to achieving 'sustainable abundance' for humanity.

The details

Elon Musk described the discontinuation of the Model S and Model X as an 'honorable discharge' for the two vehicles that have played a crucial role in Tesla's history. In Q4 2025, the combined sales of the 'Other Models' (including the S, X, Cybertruck, and Semi) accounted for just 2.8% of Tesla's total vehicle sales, with the Model 3 and Model Y dominating the lineup. The lack of significant updates and features in recent refreshes, as well as the need for more factory space to produce the Optimus robot, have contributed to Tesla's decision to phase out the flagship models.

• Tesla will cease production of the Model S and Model X by the end of the second quarter of 2026.
• The decision was announced during Tesla's Q4 2025 Earnings Call on January 29, 2026.

What they’re saying

What’s next

For those interested in purchasing a factory-fresh Model S or Model X, the order window is closing rapidly as production is scheduled to cease entirely by the end of the second quarter of 2026.