Tesla Discontinues Model S and Model X to Focus on Autonomous Future

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Tesla has announced that it will be discontinuing production of its Model S and Model X electric vehicles, citing a focus on its autonomous driving technology and lower-cost models as the reasons behind the decision. The company's CEO, Elon Musk, explained that Tesla is "really moving into a future that is based on autonomy," and the higher-cost, lower-volume S and X models no longer align with the company's strategic direction.

Why it matters

Tesla's decision to discontinue the Model S and Model X reflects the broader shift in the electric vehicle market towards more affordable models and the growing importance of autonomous driving technology. This move aligns with Tesla's goal of developing autonomous robotaxi services, which the company believes will be a key driver of its future growth.

The details

The Model S and Model X accounted for only a small fraction of Tesla's overall deliveries in the fourth quarter of 2025, with the "other models" category (which includes the S and X) generating just over 4,000 units, or 1.2% of total deliveries. Meanwhile, Tesla is converting the Fremont factory space used to produce the S and X to manufacture its Optimus robot as part of a $20 billion capital spending commitment in 2026.

• In the fourth quarter of 2025, the Model S and Model X accounted for just over 4,000 units, or 1.2% of Tesla's total deliveries.
• Tesla announced the discontinuation of the Model S and Model X during a recent earnings call in 2026.

What they’re saying

What’s next

Tesla is converting the Fremont factory space used to produce the Model S and Model X to manufacture its Optimus robot as part of a $20 billion capital spending commitment in 2026.