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Tesla will end production of its long-running Model S sedan and Model X SUV by mid-2026, CEO Elon Musk confirmed during the company’s Q4 2025 earnings call.
“It’s time to basically bring the Model S and X programs to an end,” he said. “We expect to wind down S and X production next quarter. It’s a little sad, but it’s time to end the S and X programs, and that’s part of our overall transition to an autonomous future.”
During his speech, it sounded like he was hinting that selling electric vehicles, a market that Tesla really helped to kickstart, might soon become just a minor focus for the company.
The Model S made its debut at a time when electric vehicles were just a small blip on the automotive radar, and many experts were skeptical about whether there would be enough interest to justify making cars that ran solely on electricity. However, the Model S quickly climbed to the top of owner satisfaction charts and built a dedicated fan base. A few years down the line, the Model X, a crossover SUV, hit the market, but it didn’t start off on the right foot, facing some criticism for its reliability.
Musk framed the decision as part of Tesla’s evolution into what he describes as a physical AI company, emphasizing autonomous systems and humanoid robotics as the engines of future growth. Both models accounted for a small share of Tesla’s overall deliveries in 2025, with most volume coming from the Model 3 and Model Y.
Musk announced that the factory in Fremont, California, which currently makes the S and X models, will be repurposed. Instead of producing vehicles, the facility will be transformed to create the company’s humanoid robot, Optimus. Tesla executives have stated that robotics and autonomy are core to future profitability and innovation, even as traditional EV sales face global competition.
In addition to robotics, Tesla’s broader strategy includes deployment of its Cybercab robotaxi, an autonomous electric vehicle designed to operate without steering wheels or pedals and targeted for volume production in 2026, according to company plans. In the classic Musk fashion, he went on to claim that robotaxis will eventually be sold in numbers that are “several times more” than all of Tesla’s other vehicles combined.
Musk made the announcement right alongside Tesla’s financial results for the last quarter of the previous year. While the company managed to surpass analysts’ profit expectations, it also revealed some concerning trends: total revenue for the year dipped by 3% compared to 2024. In after-hours trading, the stock price saw a boost of about 2%.
Over the past year, Tesla’s car sales have faced challenges, partly due to customers reacting to Musk’s engagement in right-wing politics, while competitors from China and beyond have been offering drivers around the globe more options.
