In a stunning announcement during Tesla’s Q4 2025 earnings call, CEO Elon Musk revealed the company will end production of the Model S and Model X next quarter, bringing the curtain down on the vehicles that launched Tesla into the luxury EV market over a decade ago.
“It’s time to basically bring the Model S and X programs to an end with an honorable discharge,” Musk stated, adding that the company is “moving into a future that is based on autonomy.”
The Fremont factory space currently producing the flagship sedans will be converted into an Optimus humanoid robot manufacturing facility, with a long-term production target of 1 million units annually. This represents one of the most dramatic strategic pivots in automotive history, a car company literally replacing car production with robot production.
The decision comes as Model S and X sales have collapsed. In Q4 2025, Tesla delivered just 11,642 “other models” (S/X/Cybertruck combined), down 51% year-over-year. For the full year, these premium models totaled only 50,850 deliveries versus 85,133 in 2024.
Musk made clear this isn’t a pause, it’s the end. “If you’re interested in buying a Model S and X, now would be the time to order it,” he warned prospective buyers. Tesla will continue supporting existing vehicles but ceased taking new orders after Q1 2026.
The move underscores Tesla’s radical transformation from hardware-centric automaker to “physical AI company,” as stated in their shareholder letter. With Optimus Gen 3 unveiling in Q1 2026 and driverless Robotaxis now operating in Austin, Tesla is betting its future on robots and autonomy, not premium sedans.
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