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Elon Musk confirmed Wednesday that Tesla will stop producing its Model S and Model X premium sedans and SUVs, marking the end of an era for its longest-running models, according to reports.
The move came as the company pivots toward autonomous technology and robotics and its earnings report showed revenue last quarter fell 3% to $24.9 billion.
Speaking on Tesla’s fourth-quarter 2025 earnings call Wednesday, Musk said production of the Model S and Model X will wind down next quarter.
Manufacturing is expected to stop in 2026 while factory space at Tesla’s Fremont, California, factory will be repurposed to support new initiatives, including production of the company’s Optimus humanoid robots.
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“It’s time to basically bring the Model S and X programs to an end with an honorable discharge,” Musk said on the call.
“If you’re interested in buying a Model S and X, now would be the time to order it.”
The Model S and Model X were once Tesla’s flagship vehicles, helping establish the company as a leader in the EV market.
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Tesla had also slashed prices on both models amid global competition in the sector.
The company’s more affordable, higher-volume vehicles — the Model 3 and Model Y — now dominate its lineup, accounting for the majority of Tesla’s vehicle deliveries last year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 430.46 | -0.44 | -0.10% |
Tesla’s quarterly results also showed revenue for 2025 coming in at $94.8 billion, 3% lower than a year ago.
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EV sales fell 16% last quarter compared to a year ago, while Tesla sold 1.64 million vehicles in 2025, signaling a 9% decline.
Tesla said it plans to unveil the third generation of its Optimus robot this quarter, calling it its “first design meant for mass production.”
Musk said on the call that Tesla is replacing the Model S and Model X production line in Fremont with a line capable of producing up to 1 million Optimus units per year, CNBC reported.
“Because it is a completely new supply chain,” Musk said, “there’s really nothing from the existing supply chain that exists in Optimus.”
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In a statement, Telsa said, “In 2026, we will further invest in the infrastructure needed to support clean energy and transport and autonomous robots, including the ramp of six new production lines across vehicle, robots, energy storage and battery manufacturing, while further leveraging our existing factory, charging and service center footprint to support future growth.”
FOX Business has reached out to Tesla for comment.
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