Tesla announced plans to discontinue the Model S and Model X in the second quarter of 2026, as revealed by CEO Elon Musk during an earnings call with investors. This strategic move aims to create space at Tesla’s Fremont factory for the production of its Optimus humanoid robot, underscoring the company’s focus on advancing artificial intelligence and robotics technologies.
Musk emphasized the significance of transitioning towards a future dominated by self-driving capabilities, encouraging potential buyers interested in the Model S and X to make their purchases promptly. The Model S, Tesla’s luxury sedan, debuted in 2012, while the Model X, known for its distinctive gull-wing doors, was introduced in 2015. Over time, sales of these models have declined as Tesla redirected its attention to the more mass-market Model 3 and Model Y.
In 2025, Tesla observed a 40.2 percent year-over-year decrease in sales of ‘other models,’ encompassing the Model S, Model X, and Cybertruck. This sales trend coincided with Musk’s strategic pivot towards developing self-driving vehicles and humanoid robots, a shift that impacted the company’s profitability.
Source: The Verge