On January 29, 2026, Tesla, Inc. confirmed it will cease production of its long-running Model S and Model X vehicles in the second quarter of 2026. This move is part of a broader strategic shift aimed at expanding the company’s focus on robotics and artificial intelligence (AI) manufacturing. CEO Elon Musk made the announcement during Tesla’s Q4 2025 earnings call, revealing that the company would repurpose its Fremont, California factory space, which has traditionally been used to produce the premium electric sedan and SUV, to focus on the production of Optimus humanoid robots.
The new direction includes a bold production target of up to one million units of the Optimus robots annually, marking Tesla’s significant pivot into the rapidly growing field of autonomous robotics. This decision comes as the Model S and Model X, once flagship vehicles for Tesla, now contribute less than 3 percent of the company’s recent delivery volumes. While the discontinuation of these models will mark the end of an era for the electric vehicle brand, Tesla is positioning itself to lead in the emerging sector of humanoid robotics, which Musk has called a key component of Tesla’s future.
Despite halting production of the Model S and Model X, Tesla will continue to offer after-sales support for existing owners. This includes servicing and maintaining the vehicles, ensuring that customers who have purchased these models will still have access to the support they need.
Tesla’s pivot toward robotics underscores the company’s evolving strategy and Musk’s long-term vision of integrating AI and robotics into everyday life. By redirecting resources from its passenger vehicle manufacturing to cutting-edge AI production, Tesla aims to tap into a new wave of technological innovation that could shape industries beyond electric vehicles.
The company’s decision is expected to have significant implications for the automotive industry and the field of robotics, setting the stage for a future where Tesla’s efforts in AI and humanoid robotics could rival its success in electric vehicles. Source: Tesla Investor Relations
