Tesla to End Model S and X Production, Pivot to Robots
Elon Musk said Tesla will wind down Model S and Model X production next quarter and retool Fremont to build Optimus robots.
Business InsiderTesla earnings recap: Musk talks xAI investment, Optimus 3, Roadster — and makes shock announcement
Fox BusinessTesla ends production of Model S and Model X vehicles, will focus on robots in 2026
NBC NewsElon Musk says Tesla will stop producing its S and X models as it shifts to making robots
The GuardianTesla discontinues Model X and S vehicles as Elon Musk pivots to robotics
TechCrunchTesla is killing off the Model S and Model X
Overview
Elon Musk said on Tesla's earnings call that the company will wind down Model S and Model X production next quarter and retool its Fremont, California, factory to build Optimus robots.
Tesla reported $24.9 billion in revenue for the quarter and said full-year revenue fell 3% in 2025, signaling a pivot toward autonomy and robotics, the company said in its earnings report.
Tesla said it will support existing Model S and X owners "for as long as people have the vehicles," Elon Musk said, while analysts on the call warned the robotics strategy remains unproven.
Tesla sold 1.64 million vehicles in 2025, a 9% decline, and the company said automotive revenue dropped 11% year-over-year, figures that underscore pressure on higher-margin luxury models, according to the earnings data.
The company said it will unveil a third-generation Optimus this quarter and aims to start Optimus production before the end of 2026, while it invested $2 billion in xAI, the earnings materials show.
Analysis
Center-leaning sources frame Tesla’s S and X retirement as an inevitable strategic shift toward autonomy, using nostalgic history and critical appraisals of the Cybertruck to justify the move. Editorial choices—loaded terms like “bombed” and “garish,” selection of Musk’s autonomy quotes, and a concluding characterization of Musk’s outsized role—shape a mildly critical, deterministic narrative.