Elon Musk is pivoting Tesla
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Elon Musk says Tesla will stop making its Model S and X vehicles and convert its California factory to produce Optimus humanoid robots.
Tesla ends Model S and X production to build Optimus robots, pivoting from automaker to AI and robotics firm amid its first annual revenue decline.
Tesla, once the fastest growing and most profitable automaker in the world, posted tumbling profits in the fourth quarter, capping a year of controversy in the US and growing competition abroad.
Tesla will discontinue the Model S and Model X in the second quarter of 2026, Elon Musk said in an earnings call with investors today. No advance word was given about the cancellations, making it an abrupt ending for Tesla’s two original flagship EVs.
It's the end of the road for Tesla's long-running electric sedan and SUV. The automaker plans to make Optimus robots in their Fremont factory space.
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Tesla Model S and X Will Die This Year, So We're Told
Two of the oldest vehicles on the market, and the halo EVs that started the Tesla uprising are soon to be discontinued. That’s right, the Tesla Model S and Tesla Model Y are on life support, dying off next quarter.
Instead, the company focused on its best-selling SUV and sedan, the Model Y, and Model 3, while sales of the Model S and X dwindled. When reporting sales, Tesla lumps all of its premium models together in the "other models" category, and in the last quarter of 2025, it sold only 11,642 of these, a 51 percent year-over-year decrease.