Tesla Discontinues Model S and Model X to Build One Million Optimus Robots

End of an Era for Tesla's Flagship Vehicles

Tesla has announced it will discontinue production of its Model S sedan and Model X SUV by the end of the second quarter of 2026. The announcement came during the company's fourth-quarter 2025 earnings call, where CEO Elon Musk described the move as giving both vehicles an "honourable discharge" as Tesla pivots toward autonomy and robotics.

The Model S, which launched in 2012, was the vehicle that proved electric cars could be both luxurious and high-performing. The Model X followed in 2015, featuring distinctive falcon-wing doors that became an iconic design element. Together, these vehicles established Tesla as a serious contender in the automotive industry.

Declining Sales Drive the Decision

Sales of both flagship models have declined sharply in recent years as Tesla shifted focus to its more affordable Model 3 and Model Y. In 2025, Model S and X combined accounted for less than three percent of Tesla's total deliveries. The company maintained production capacity for one hundred thousand units annually at its Fremont factory but has been operating at a fraction of that level.

Meanwhile, Model 3 and Model Y deliveries exceeded 1.58 million units during the same period, highlighting the dramatic shift in consumer preference toward Tesla's mass-market offerings.

Optimus Robots Take Over the Factory Floor

The Fremont production lines currently building Model S and X will be converted to manufacture Optimus humanoid robots, with a target capacity of one million units annually. Tesla plans to unveil Optimus Gen 3, its first design intended for mass production, within approximately three months.

The company has already deployed over one thousand Optimus robots at its manufacturing facilities. Musk stated during the call that he expects Optimus to have a significant impact on GDP in the long term, though he tempered expectations by noting that significant production volume would not materialise until the end of 2026 at the earliest.

What This Means for Current Owners

Tesla confirmed it will continue servicing Model S and Model X vehicles for as long as owners have them. However, once existing inventory is sold, the two models will no longer be available for purchase. Musk encouraged interested buyers to place their orders now before production ends.