Tesla will cease production of its Model S sedan and Model X SUV, with manufacturing winding down in the second quarter of 2026. CEO Elon Musk announced the decision during the company's Q4 2025 earnings call, framing it as part of a broader shift toward an "autonomous future."
The move marks the end of an era for the vehicles that helped establish Tesla's brand and propel EVs into the mainstream. The production lines for the Model S and X at the Fremont, California, factory will be repurposed to manufacture the company's "Optimus" humanoid robot. This strategic pivot underscores Tesla's increasing focus on artificial intelligence and robotics over its legacy automotive business.