In a significant shift, Tesla will halt production of its Model S and X electric vehicles in the upcoming quarter, as announced by CEO Elon Musk during the earnings call for the 2025 fiscal year. The company’s focus will transition towards the development of the Optimus humanoid robot, with plans to convert the production space at their Fremont factory for this purpose.
Despite the cessation of production, customers can still purchase existing units of the Model S and X while supplies last, with ongoing support promised for current owners. The performance of these models has waned compared to the more popular Model 3 and Y, which saw deliveries of 1,585,279 units in 2025, as opposed to 418,227 for the older models.
Additionally, Tesla ceased sales of the Model S and X in China in mid-2025 due to tariffs imposed on imported vehicles. Musk indicated a long-term ambition to manufacture 1 million Optimus robots in the space previously used for the Model S and X. He aims to begin public sales of the robots by the end of next year, following a recent announcement at the World Economic Forum in Davos.