Tesla is reportedly phasing out its Model S and Model X vehicles next quarter, marking a significant turning point for the electric car manufacturer as reported by Business Insider.the move, announced by CEO Elon Musk, signals a sharper focus on fully autonomous technology and a massive investment in the company’s Optimus robot program. tesla plans too repurpose its Fremont, California factory to produce up to one million Optimus robots annually, representing a major strategic shift beyond its customary automotive business.
Tesla will discontinue production of its Model S and Model X vehicles in the next quarter, according to CEO Elon Musk, marking the end of the electric vehicle manufacturer’s premium SUV and sedan offerings, Business Insider reports.
The move signals a strategic shift for Tesla as it focuses on fully autonomous technology. “It’s time to sunset the Model S and X programs, honorably, because we’re really heading towards a future that’s based on autonomy,” Musk stated during the company’s fourth-quarter earnings call.
Tesla plans to repurpose the production lines currently used for the Model S and Model X at its Fremont, California factory to build a dedicated facility for its Optimus robot, with a long-term goal of producing one million robots annually. This investment underscores Tesla’s growing ambitions beyond the automotive sector.
Musk assured customers that Tesla will continue to provide support for existing Model S and Model X vehicles. He added that for those still interested in purchasing these models, “now would be the time to order.”
The CEO described the change as “a little sad,” but emphasized it’s a necessary step in the “overall transition of the company towards an autonomous future.”
Tesla shares rose on Wednesday following the announcement of a $2 billion investment in xAI, Musk’s artificial intelligence company, and after the company exceeded earnings expectations. Tesla also announced plans to launch the third generation of its Optimus robot later this quarter.
Model S and Model X Represent Tesla’s Higher Price Point
The Model S and Model X represent some of Tesla’s oldest and most expensive models.
Tesla first unveiled a prototype of the Model S sedan in 2009, with deliveries to customers beginning in 2012. The Model X SUV was announced in 2012, with initial deliveries taking place in 2015.
Both models received updates in 2025, including increased range, improved noise cancellation, and a smoother suspension, accompanied by a $4,500 price increase. However, these enhancements did not incorporate some of the more innovative technologies featured in Tesla’s Cybertruck.
As of Wednesday, the starting price on Tesla’s website for the Model S was $94,990, or $109,990 for the premium Plaid version. The Model X started at $99,990, or $114,990 for the Plaid model.
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Editor : Ș.R.
