Tesla will discontinue its Model S sedan and Model X SUV next quarter, marking the end of production for the company’s two longest-running electric vehicles as it pivots toward robotics and autonomous technology.
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The decision was announced during the company’s earnings call Wednesday, where Tesla confirmed plans to convert production space at its Fremont, California, factory into a facility dedicated to manufacturing Optimus humanoid robots. The area currently used to build the Model S and Model X will eventually be retooled to produce up to 1 million robots annually.
The move reflects a broader strategic shift underway at Tesla, which has increasingly emphasized autonomy and robotics as central to its future. While the end of the Model S and Model X was described as a difficult transition, the company framed the decision as a necessary step toward focusing resources on next-generation technologies.
The discontinuation of the two vehicles had been widely anticipated. Demand for the Model S and Model X has declined in recent years, and the vehicles account for a shrinking share of Tesla’s global sales. Following the launch of the Cybertruck, Tesla grouped the Model S and Model X into an “Other models” category in its delivery reports, signaling their reduced role in the lineup. In some markets, the vehicles were already no longer available.
Tesla’s mass-market vehicles, the Model 3 and Model Y, continue to dominate the company’s sales. In 2025, the two models accounted for a combined 1.6 million deliveries worldwide. By contrast, deliveries of all other models totaled just 50,850 during the same period, underscoring the limited volume generated by the higher-priced vehicles.
Despite the discontinuation, Tesla has indicated it plans to introduce new vehicles to replace the outgoing models. The company reiterated that several long-promised projects remain in development, including the steering wheel-free Cybercab, the Semi truck, and the Roadster supercar.
As Tesla reshapes its manufacturing footprint, the decision to end production of the Model S and Model X highlights the company’s evolving priorities. Once flagship models that helped establish Tesla’s presence in the electric vehicle market, the vehicles are now giving way to a future increasingly centered on automation, robotics, and large-scale technological transformation.
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