Tesla CEO Elon Musk made a major statement during the latest earnings call. He said the Model S and Model X are nearing the end of their lifecycle. This marks a turning point for Tesla’s longest running vehicles, especially the Model S, which launched the brand into the mainstream.
The decision aligns with Tesla’s current sales mix. Around 97 percent of global deliveries now come from the Model 3 and Model Y. Demand for the Model S and X has remained niche, with limited volume impact on overall revenue.
The bigger surprise involves Tesla’s Fremont factory. Musk confirmed plans to replace Model S and Model X production lines with lines dedicated to the Optimus humanoid robot. Optimus is positioned as a general purpose robot designed for factory work, logistics, and household assistance.
Tesla targets annual production of up to one million Optimus robots. Musk stated that robot manufacturing would increase total headcount at the Fremont facility, even as vehicle lines shut down.
This shift comes at a sensitive time. 2025 marked Tesla’s first year of revenue decline. Management now sees robotics and AI driven products as a long term growth lever against rising EV competition.
For buyers still considering Tesla’s flagship models, timing matters. In the United States, the Model S starts at $95,000, while the Model X starts at $100,000. In Europe, prices sit around €110,000 for the Model S and €115,000 for the Model X. Production wind down risks future availability.
FAQ
Is Tesla officially discontinuing the Model S and Model X?
Why is Tesla focusing on Optimus robots?
Will Fremont stop building cars entirely?
Should buyers expect price changes for Model S and X?
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