Tesla announced that it will stop production of the Model S and Model X in the second quarter of 2026. In a conference call with investors, Elon Musk said that this decision was made to create space at Tesla's Fremont factory for the production of the humanoid robot Optimus .
The Model S is Tesla's luxury sedan, first released in 2012, while the Model X is the company's SUV with its signature gull-wing doors, introduced in 2015. Sales of both vehicles have been steadily decliningas the company has focused on its mass-market Model 3 and Model Y.
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In 2025, Tesla sold 50,850 “other models,” a category that includes the Model S, Model X, and Cybertruck. That represented a 40.2% decline in sales compared to the previous year.
Tesla: From electric vehicles to humanoid robots
Musk is trying to transform Tesla from an automaker into a company that builds autonomous cars and humanoid robots. That transition has proven difficult, with Tesla reporting a 61% drop in fourth-quarter profits.
The new decision to discontinue the Model S and Model X appears to be part of a broader strategy to restructure Tesla's production to focus on technologies that Musk believes will define the company's future. The humanoid robot Optimus, which was shown as a prototype a few years ago, is expected to be one of the centerpiece products of Tesla's new direction.
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Tesla has invested heavily in the development of Optimus, with the goal of creating a robot that can perform a variety of tasks, both in industrial and domestic environments. Musk has said he sees Optimus as a revolution in automation that could fundamentally change the way businesses and households operate.
Despite the challenges Tesla faces in its transition to robotics, Musk remains optimistic about the company's future. He has repeatedly stressed that Tesla's success will depend not only on car sales, but also on its ability to innovate and adapt to new technological trends.
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Discontinuing the Model S and Model X may be a bold move, but for Musk and Tesla, it appears to be a necessary step toward achieving the company's long-term goals. The focus on developing Optimus and other advanced technologies demonstrates Tesla's determination to remain at the forefront of innovation and define the future of automotive and robotics.
