Tesla Model S/X: Killed for Robots Now

Tesla Discontinues Model S and Model X to Prioritize Optimus Robots and Autonomy

Tesla CEO Elon Musk has announced the end of production for the iconic Model S sedan and Model X SUV by the end of Q2 2026, marking a bold pivot toward autonomy and humanoid robotics. This decision redirects factory resources to ramp up manufacturing of the Optimus robot, signaling a new chapter for the electric vehicle pioneer.

The Announcement from Tesla's Earnings Call

During Tesla's Q4 2025 earnings call, Musk described the move as giving the Model S and X an "honorable discharge." He noted it feels "slightly sad," but emphasized the company's shift to an autonomous future. Production at the Fremont Factory in California will wind down completely between March and June 2026, with no immediate replacements planned for these premium models.

Declining Sales and the Rise of Mass-Market Models

The Model S, launched in 2012, and Model X, introduced in 2015, paved the way for Tesla's dominance in the EV market with their cutting-edge tech and luxury appeal. However, sales have plummeted in recent years. In 2025, deliveries of these models, combined with others like the Cybertruck, totaled around 59,900 units, a 36% drop from 2024. Lower volumes compared to the bestselling Model 3 and Y made them less viable, especially after recent price hikes pushed starting prices to nearly $95,000 for the Model S and $100,000 for the Model X.

Optimus Robots Take Center Stage

The freed-up production lines at Fremont will transform into a dedicated Optimus factory, aiming for one million humanoid robots annually in the long term. Musk highlighted this as key to Tesla's autonomy focus, with the third-generation Optimus slated for release later this quarter. Tesla commits to supporting existing Model S and X owners indefinitely, urging interested buyers to order now before stocks run out.

Historical Significance and What Comes Next

These vehicles were Tesla's flagships, with the Model S earning acclaim for its performance and the Model X for its falcon-wing doors. Recent refreshes felt like farewells rather than innovations. Musk's strategy prioritizes AI-driven initiatives, including self-driving tech and robotics, over legacy luxury cars. While Tesla beat earnings expectations and plans AI investments, this shift raises questions about its premium EV lineup.

Conclusion

Tesla's discontinuation of the Model S and X underscores a transformative bet on robotics and autonomy over traditional vehicles. As Optimus production scales, enthusiasts ponder if new luxury models will ever return or if Tesla's future lies entirely in AI abundance.

This move closes an era but opens doors to groundbreaking possibilities in humanoid robotics and beyond.