Tesla CEO Elon Musk said the company will discontinue the Model S and Model X next quarter as it shifts its focus toward an autonomous future centered on AI and robotics.
Speaking during Tesla’s fourth-quarter earnings call, Musk said the decision reflects a broader strategic pivot, with production lines at the Fremont factory set to be replaced by an Optimus robot facility. The long-term goal, he said, is to produce up to one million humanoid robots per year.
“It’s time to bring the Model S and X programs to an end with an honorable discharge,” Musk said, adding that while the move is “slightly sad,” it aligns with Tesla’s future priorities.
Musk said Tesla will continue supporting existing Model S and X vehicles, but suggested customers interested in owning one should place orders soon.
The Model S and Model X were Tesla’s first major vehicles, with the Model S launching in 2012 and the Model X following in 2015. Both are now the company’s most expensive models, with starting prices near $100,000, and have seen lower sales volumes compared to the Model 3 and Model Y.
Tesla also announced plans to release the third generation of its Optimus robot later this quarter, reinforcing Musk’s vision of shifting the company away from traditional car manufacturing toward AI-driven automation.