Model S
Tesla to End Model S and X Production by June 2026, Repurposing Fremont Lines for 1M Optimus Robots and Cybercab Amid Sales Slump
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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.
Tesla has agreed to invest approximately $2 billion in xAI's Series E Preferred Stock, signaling deeper integration between its automotive and AI ambitions. The company is also discontinuing its Model S and Model X vehicles to shift focus toward robotics and AI infrastructure. This pivot includes operational ties, such as xAI's $430 million purchase of Tesla's Megapack systems in 2025.
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John Urban filed a class-action lawsuit in Florida on January 10, 2026, accusing Tesla of defective electronically actuated door handles on 2014-2016 Model S vehicles that routinely fail after several years, creating access issues and safety risks. Three of four handles on his 2015 Model S Ludicrous stopped working by 2022, forcing inconvenient workarounds amid broader scrutiny of Tesla's door systems.