Tesla is getting ready to stop building the Model S sedan and Model X SUV next quarter. The company plans to use the freed capacity for its Optimus humanoid robot program and other autonomy projects instead.
Elon Musk laid out the plan on Tesla’s Q4 2025 earnings call on January 28, 2026. He said the company will give the Model S and Model X an “honorable discharge” as they leave the production line.
He explained that output for both models will wind down over the coming quarter, and he said production is set to end by the close of the second quarter of 2026. So for anyone who wants a new Model S or Model X, remaining inventory and the last production run are expected to be the final chance to buy one new.
Musk had a direct message for potential buyers. He said that “if you’re interested in buying a Model S and X, now would be the time to order it because we expect to wind down S and X production next quarter and basically stop production.” He also thanked long-time owners and said “Tesla wouldn’t be what it is today without Model S & X and their (early) owners.”
Factory capacity shifts to Optimus
The change is tightly linked to Tesla’s push into robotics and autonomy. Musk has framed the next phase of the company as an “autonomous future,” and he wants Fremont’s Model S and Model X lines to support that goal.
According to company comments, more than 1,000 Optimus Gen 3 robots are already working inside Tesla plants in repetitive or high-risk roles. The company plans to present a production-ready Optimus Gen 3 unit in the first quarter of 2026, then expand output over the rest of the year.
Fremont is expected to move toward an annual capacity near one million Optimus units by late 2026. At the same time, a larger new facility at Giga Texas is under development, with long-term targets of around 10 million robots a year starting in 2027.
Flagship sales have fallen behind
The decision lands after years of weaker demand for the two flagships. In 2025, Tesla grouped the Model S, Model X, Cybertruck and Semi in an “Other Models” line and reported 50,850 deliveries for that combined category.
Roughly 30,000 of those units were Model S and Model X. That is far below earlier peaks and far behind the Model 3 and Model Y, which reached 1,585,279 deliveries and made up about 97% of all Tesla vehicle sales in 2025. As a result, the Fremont lines built for up to about 100,000 Model S and Model X units a year were running well below that capacity.
Company filings point to a tougher year for Tesla’s finances as well. They indicate that 2025 revenue slipped about 3% to around 94.8 billion dollars, marking the firm’s first annual revenue decline. Adjusted net income fell by about 16%, and GAAP net income dropped about 46% to 3.8 billion dollars.
Global deliveries dropped for a second straight year, landing near 1.63 million vehicles in 2025. Analysts say these pressures have pushed Tesla to lean harder into high-margin software, lower-cost volume models, and long-term bets like Optimus.
How Model S and Model X changed the market
The end of production does not erase the impact of these cars. The Model S, revealed in 2009 and delivered from 2012, was Tesla’s first clean-sheet premium electric sedan. It offered about 265 miles of range in early versions, and it helped counter doubts that battery cars could handle long trips.
The car drew major attention when Motortrend named it Car of the Year for 2013, the first time a non-gasoline vehicle received that title from the magazine. Reviewers pointed to its strong acceleration, quiet driving experience and large central touchscreen. Many industry watchers later said the Model S pushed rivals like BMW, Mercedes-Benz, Audi and Porsche to speed up their own electric programs.
The Model X, which reached customers in 2015, moved Tesla into the SUV market with three-row seating and its signature falcon-wing rear doors. Those doors and a long list of complex features created early production and quality problems, and Tesla later admitted “hubris” in trying to build in so much tech at once. Over time, the company fixed the worst issues, and the Model X settled into a smaller but loyal customer base.
High-performance versions of the Model S and Model X delivered supercar-like acceleration, with some Model S variants going from zero to 60 mph in roughly 2.3 seconds. Both cars helped make over-the-air software updates and early Autopilot systems part of the normal expectations for many new vehicles.
These two models did more than help Tesla. By proving that electric cars could be fast, practical and usable on long drives, they helped shift the industry discussion from if electric vehicles would scale to how fast they might grow.
Tesla tied their launch closely to its Supercharger network, which was built out so early owners could travel longer distances with less planning. That charging backbone later supported the Model 3 and Model Y, which used the same network to move electric cars into a broader price segment.
Revenue and brand recognition from the Model S and Model X gave Tesla the base to fund cheaper cars and now to push into humanoid robots. As rival automakers brought more electric sedans and SUVs to market, the aging Tesla flagships faced more competition and saw shrinking demand.
Musk has said Tesla will keep backing these cars after production stops. Service, spare parts and software support for the Model S and Model X are expected to carry on “for as long as people have the vehicles,” based on his remarks on the earnings call. That is key for owners who plan to keep their cars for many years.
For anyone still thinking about a new Model S or Model X, the window is narrow. Musk has already said that production will end after the coming quarter, and he urged buyers to act now if they want one from the last run.
Inventory will depend on region, and pricing will follow Tesla’s usual online ordering system, but there is no new generation of either model on the way.
As Fremont converts more space to Optimus robots and autonomy projects, the Model S and Model X move from production to history. They leave behind a record of helping electric cars compete with established luxury brands and of giving Tesla the foundation for its next, very different, phase.
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