Tesla CEO Elon Musk announced on Wednesday that production of the Model S and Model X vehicles will come to an end, as the automaker shifts its focus to manufacturing Optimus humanoid robots at its Fremont, California factory. “It’s time to basically bring the Model S and X programs to an end with an honorable discharge,” Musk declared during the company’s fourth-quarter earnings call. He encouraged those interested in purchasing these models to act quickly, stating, “If you’re interested in buying a Model S and X, now would be the time to order it.”
The Model S, a luxury sedan, was first launched in 2012, while the Model X SUV followed in 2015. These vehicles hold the distinction of being among Tesla’s earliest offerings, second only to the original Roadster. In recent years, Tesla has significantly reduced prices on the Model S and Model X as competition in the electric vehicle (EV) space has intensified. Currently, the Model S starts at approximately $95,000, while the Model X is priced around $100,000.
However, Tesla’s more popular models-the Model 3 and Model Y-dominate its sales, accounting for a staggering 97% of the company’s 1.59 million deliveries last year. The Model 3 is now offered at about $37,000, and the Model Y starts at around $40,000, with more affordable options introduced late last year.
In conjunction with the production shift, Tesla reported its first-ever decline in annual revenue, with sales dropping in three out of the past four quarters. Musk has been attempting to pivot the company’s narrative away from traditional electric vehicles, emphasizing the development of autonomous driving technology and humanoid robots, areas where Tesla is currently seeking to establish a foothold.
The Optimus project aims to create a bipedal, intelligent robot capable of performing tasks ranging from factory labor to childcare. According to a company release, Tesla plans to unveil the third generation of Optimus within the quarter, which will be the “first design meant for mass production.” Musk highlighted the transition by noting that the production line for the Model S and Model X will be replaced with a new line capable of producing one million units of Optimus annually.
“This is a completely new supply chain,” Musk explained, indicating that the Optimus project does not use any components from the existing supply chain tied to the Model S and X vehicles. He also mentioned expectations for an increase in workforce at the Fremont facility, which would further boost production capacity.
As Tesla pivots towards this new frontier, the automotive landscape continues to evolve, with competition and innovation at the forefront. With the transition from traditional electric vehicles to advanced robotics, Tesla is not only redefining its product lineup but also setting the stage for the future of technology in everyday life.
Original Source: https://www.cnbc.com/2026/01/28/tesla-ending-model-s-x-production.html
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Publish Date: 2026-01-29 18:21:00
