Tesla will end Model S and Model X production in 2026 as Elon Musk pivots the company toward AI autonomy and humanoid robots.<\/b>
\nTesla will end production of its long-running Model S sedan and Model X SUV by mid-2026, CEO Elon Musk confirmed during the company\u2019s Q4 2025 earnings call.
\u201cIt\u2019s time to basically bring the Model S and X programs to an end,\u201d he said. \u201cWe expect to wind down S and X production next quarter. It\u2019s a little sad, but it\u2019s time to end the S and X programs, and that\u2019s part of our overall transition to an autonomous future.\u201d
During his speech, it sounded like he was hinting that selling electric vehicles, a market that Tesla really helped to kickstart, might soon become just a minor focus for the company.
The Model S made its debut at a time when electric vehicles were just a small blip on the automotive radar, and many experts were skeptical about whether there would be enough interest to justify making cars that ran solely on electricity. However, the Model S quickly climbed to the top of owner satisfaction charts and built a dedicated fan base. A few years down the line, the Model X, a crossover SUV, hit the market, but it didn\u2019t start off on the right foot, facing some criticism for its reliability.
Musk framed the decision as part of Tesla\u2019s evolution into what he describes as a physical AI company, emphasizing autonomous systems and humanoid robotics as the engines of future growth. Both models accounted for a small share of Tesla\u2019s overall deliveries in 2025, with most volume coming from the Model 3 and Model Y.
Musk announced that the factory in Fremont, California, which currently makes the S and X models, will be repurposed. Instead of producing vehicles, the facility will be transformed to create the company\u2019s humanoid robot, Optimus. Tesla executives have stated that robotics and autonomy are core to future profitability and innovation, even as traditional EV sales face global competition.
In addition to robotics, Tesla\u2019s broader strategy includes deployment of its Cybercab robotaxi, an autonomous electric vehicle designed to operate without steering wheels or pedals and targeted for volume production in 2026, according to company plans. In the classic Musk fashion, he went on to claim that robotaxis will eventually be sold in numbers that are \u201cseveral times more\u201d than all of Tesla\u2019s other vehicles combined.
Musk made the announcement right alongside Tesla\u2019s financial results for the last quarter of the previous year. While the company managed to surpass analysts\u2019 profit expectations, it also revealed some concerning trends: total revenue for the year dipped by 3% compared to 2024. In after-hours trading, the stock price saw a boost of about 2%.
Over the past year, Tesla\u2019s car sales have faced challenges, partly due to customers reacting to Musk\u2019s engagement in right-wing politics, while competitors from China and beyond have been offering drivers around the globe more options.<\/p>\n