Tesla will “fundamentally stop production” of its Model S And X electric vehicles in the next quarter, CEO Elon Musk has announcement during the automaker’s fiscal 2025 earnings call. “It’s time to end the Model S and X program with an honorable discharge, because we are truly moving toward a future based on autonomy,” Musk said. You can still buy the vehicles as long as there are units for sale, and Tesla promises to support them for as long as people own them. Once they’re gone, they’re gone for good, as Tesla is converting its production space in the company’s Fremont factory into space for manufacturing Optimus humanoid robots.
The Model S is Tesla’s second vehicle and has been in production since 2012, while the Model X SUV has been in production since 2015. However, their shine has faded over the years and the new Model 3 and Y are now available. constitute the essential of company sales. For the the entirety of 2025, for example, Tesla delivered 1,585,279 Model 3 and Y vehicles, but only sold 418,227 Model S and X units. The company also had to stop selling The Model S and
During the call, Musk said Tesla’s long-term goal is to be able to manufacture 1 million Optimus robots in the current Model S and X production space. At the World Economic Forum in Davos, Switzerland, a few days ago, the CEO announced that Tesla start selling Optimus to the public by the end of next year. Musk has big plans for Optimus and said once that it is destined to become “the biggest product of all time”, bigger than cell phones, “bigger than anything”. But the humanoid robot failed to live up to the hype during demonstrations, and Musk is known for his overly optimistic timelines.
The company’s earnings report also revealed that Tesla invested $2 billion in Musk’s other company, xAI. Tesla shareholders in particular continued Musk in 2024 for the launch of xAI, which they say is direct competition for the automaker. After all, the CEO has been saying for years that Tesla is an AI company and not just an electric vehicle maker. However, Tesla shareholders approved Musk’s $1 trillion all salaries at the end of 2025 provided the company reaches a market value of $8.5 trillion.
