Quick Takeaways
- Tesla Model S and Model X production ends as the company reallocates Fremont capacity to Optimus robotics.
- The decision highlights Tesla’s accelerating shift from low-volume flagship vehicles to AI-driven manufacturing.
Tesla has decided to discontinue its low-volume flagship vehicles as Tesla Model S and Model X production ends, reflecting a sharper focus on robotics and artificial intelligence. The move comes as these models account for a shrinking share of deliveries, while Tesla prepares its manufacturing base for large-scale Optimus robot output.
Tesla confirms Model S and Model X exit during earnings call
During the fourth-quarter 2025 earnings call, Tesla CEO Elon Musk confirmed that the Model S sedan and Model X SUV will be phased out. He explained that the shift aligns with Tesla’s long-term strategy centered on autonomy, AI, and robotics rather than legacy premium vehicles.
Fremont factory lines to transition to Optimus production
As Tesla Model S and Model X production ends, the dedicated lines at the Fremont, California facility will be repurposed for Optimus. The reconfigured lines are expected to support manufacturing capacity of up to one million Optimus robots annually, underscoring the scale of Tesla’s robotics ambition.
Deliveries decline highlights reduced strategic relevance
Tesla groups the Model S, Model X, and Cybertruck under “Other Models” in its quarterly delivery data. Their contribution has steadily weakened following the global expansion of the more affordable Model 3 and Model Y.
In the fourth quarter of 2025, vehicles excluding Model 3 and Model Y contributed just 2.78% of total deliveries, reinforcing why Tesla Model S and Model X production ends at this stage of the company’s evolution.
Regional sales status and after-sales support
Tesla will continue to provide after-sales service for existing Model S and Model X vehicles in the US. Deliveries, however, will formally stop in the second quarter once remaining inventory is exhausted. In China, Tesla’s second-largest market, the company stopped accepting new orders for both models in April 2025.
Legacy models give way to future-defining products
The Model S began US deliveries in 2012 as Tesla’s first mass-produced vehicle, while the Model X followed in September 2015. Despite their flagship positioning and performance credentials, these models no longer align with Tesla’s future priorities. Production continued largely due to their symbolic value, with Musk previously noting they were built for “sentimental reasons.”
As Tesla Model S and Model X production ends, resources are being redirected toward Optimus, widely viewed as Tesla’s most significant product opportunity in the years ahead. Reflecting that sentiment, the Tesla Optimus account posted after the earnings call, “Model S & X will live on through me,” signaling the close of one chapter and the start of another for the company.
Tesla confirms Model S and Model X exit during earnings call
During the fourth-quarter 2025 earnings call, Tesla CEO Elon Musk confirmed that the Model S sedan and Model X SUV will be phased out. He explained that the shift aligns with Tesla’s long-term strategy centered on autonomy, AI, and robotics rather than legacy premium vehicles.
- “It is time to bring the Model S and Model X programs to an end with an honorable discharge. It is time to bring the S/X programs to an end. It's part of our overall shift to an autonomous future,” Musk said.
Fremont factory lines to transition to Optimus production
As Tesla Model S and Model X production ends, the dedicated lines at the Fremont, California facility will be repurposed for Optimus. The reconfigured lines are expected to support manufacturing capacity of up to one million Optimus robots annually, underscoring the scale of Tesla’s robotics ambition.
Deliveries decline highlights reduced strategic relevance
Tesla groups the Model S, Model X, and Cybertruck under “Other Models” in its quarterly delivery data. Their contribution has steadily weakened following the global expansion of the more affordable Model 3 and Model Y.
| Period | Share of Global Quarterly Deliveries |
|---|---|
| Early 2019 | ~20% |
| Q4 2022 | ~4% |
| Q4 2025 | 2.78% |
In the fourth quarter of 2025, vehicles excluding Model 3 and Model Y contributed just 2.78% of total deliveries, reinforcing why Tesla Model S and Model X production ends at this stage of the company’s evolution.
Regional sales status and after-sales support
Tesla will continue to provide after-sales service for existing Model S and Model X vehicles in the US. Deliveries, however, will formally stop in the second quarter once remaining inventory is exhausted. In China, Tesla’s second-largest market, the company stopped accepting new orders for both models in April 2025.
Legacy models give way to future-defining products
The Model S began US deliveries in 2012 as Tesla’s first mass-produced vehicle, while the Model X followed in September 2015. Despite their flagship positioning and performance credentials, these models no longer align with Tesla’s future priorities. Production continued largely due to their symbolic value, with Musk previously noting they were built for “sentimental reasons.”
As Tesla Model S and Model X production ends, resources are being redirected toward Optimus, widely viewed as Tesla’s most significant product opportunity in the years ahead. Reflecting that sentiment, the Tesla Optimus account posted after the earnings call, “Model S & X will live on through me,” signaling the close of one chapter and the start of another for the company.
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