Tesla is officially winding down production of its longest-running electric vehicles, the Model S and Model X. During the company’s Q4 2025 earnings call on Wednesday, CEO Elon Musk confirmed that these flagship models will be discontinued by the end of the second quarter of 2026. This decision reflects a massive shift in Tesla’s business model, moving away from being a pure automaker to focusing on what Musk calls “Physical AI” and humanoid robotics.
The floor space at the Fremont factory in California currently used for the S and X assembly lines is already being prepared for a total overhaul. Tesla plans to repurpose the facility to manufacture Optimus, its humanoid robot, at a massive scale. Musk stated that the goal is to produce one million Optimus units annually from the Fremont site alone, with even larger production targets planned for Giga Texas.
Musk on the Shift to Robotics
Elon Musk did not mince words about the emotional but necessary nature of the change. “It’s slightly sad, but it is time to bring the S and X program to an end,” Musk said during the call. He described the move as a fundamental part of the company’s “overall shift to an autonomous future.”
When discussing the future of the company, Musk highlighted that Tesla is now a “dozen startups in one,” with robotics being the most significant. He went as far as to agree with the sentiment that eventually “nobody will remember that Tesla ever made a car,” responding to the idea on X with a simple, “Probably true.” He famously dubbed the Optimus project as the “infinite money glitch,” explaining that “there is not really a limit to AI that is embodied” and predicting it could achieve five times the productivity of a human.
The Legacy of the Flagships
The Model S launched in 2012 and was the car that proved electric vehicles could be luxurious and high-performing. The Model X followed in 2015 with its complex Falcon Wing doors. However, both vehicles have seen a steady decline in sales, accounting for less than 3% of Tesla’s total deliveries in late 2025.
Musk noted that while the flagships were “honourable” and proved the EV concept, the manufacturing complexity no longer makes sense as the company prioritizes autonomy. “Really, the way to think of Tesla is almost entirely in terms of solving autonomy and being able to turn on that autonomy for a gigantic fleet,” Musk told investors, emphasizing that the focus has moved beyond the hardware of sedans and SUVs.
Current owners of the Model S and X will continue to receive service and parts support. However, for those interested in a new build, custom orders are expected to close soon as the factory prepares for its robotic transition.
This is the end of an era–time to pour one out for the Model S and Model X. It will be interesting to see Optimus taking over the Fremont factory.
