Tesla announced in its Q4 2025 earnings call that it will cease production of flagship Model S (2012) and Model X (2015) by end-June 2026, redirecting low-utilization Fremont factory capacity to produce up to 1 million Optimus humanoid robots annually and Cybercab autonomous taxis starting H1 2026. CEO Elon Musk termed it an 'honorable discharge' for the legacy models, which saw ~30,000 deliveries in 2025 (~2% of total), signaling a pivot to AI, robotics, and full autonomy amid the company's first annual revenue decline and EV competition.
During Tesla's Q4 2025 earnings call on January 31, 2026, CEO Elon Musk confirmed plans to wind down Model S sedan and Model X SUV production by Q2's end. 'It’s time to bring the Model S and X programs to an end with an honorable discharge because we’re really moving into a future that is based on autonomy,' Musk said. In an X post, Tesla urged: 'As we shift to an autonomous future, Model S & X production will wind down next quarter. If you’d like to own one, now’s a good time to place your order.' Musk added: 'The Tesla Model S and X are amazing vehicles. Get them while still available!' Custom orders are paused in some regions, with inventory clearance post-Q2 and continued owner support.
Launched in 2012, the Model S established Tesla's premium EV leadership with its range and acceleration; the 2015 Model X brought falcon-wing doors to luxury SUVs. Built solely at Fremont (100k capacity), they pioneered funding for mass-market Model 3/Y but declined sharply: ~30,000 combined S/X units in 2025 (30% utilization; China sales <2,000 after April tariff removal), with S/X/Cybertruck total at 50,850 (-40%). Model 3/Y deliveries fell 7% to ~1.6M. Q4 revenue dropped 3% to $24.9B; full-year $94.8B marked first decline amid BYD rivalry.
Fremont lines will ramp Optimus Gen 3 (Q1 2026 unveil; $20k/unit; external sales 2027), targeting 1M/year by late 2026 for factory/home tasks—Musk calls it potentially 'the biggest product ever.' Cybercab (no steering wheel) production starts H1 2026, building on Austin robotaxi pilot (June 2025 launch; driverless by December). This 'physical AI' shift includes >$20B 2026 capex, $2B xAI investment, with Musk forecasting human-driven miles <1% long-term.
Competitors like BMW, Hyundai, Mercedes explore humanoid robots; analysts flag risks in abandoning autos for unproven tech, with Optimus commercialization years away.
