After nearly 13 years of building its flagship luxury cars, Tesla announced it will stop making the Model S sedan and Model X SUV in spring 2026. CEO Elon Musk shared the news during the company’s Q4 2025 earnings call, explaining that Tesla is shifting focus toward a future built on autonomy rather than cars people drive themselves. Anyone still wanting these vehicles should order soon since no replacements are planned.
Tesla discontinues Model S and Model X production in spring 2026 as company pivots from driver-operated vehicles to autonomous technology.
Sales numbers reveal why this decision makes sense for Tesla. The “other models” category, which includes the Model S, Model X, and Cybertruck, saw sales drop about 40% in 2025. That’s a much steeper decline than the roughly 7% drops for the Model 3 and Model Y. The Model S costs $94,990 while the Model X runs $99,990, making them Tesla’s priciest offerings. Many features that once made these cars special are now available on cheaper models, which likely pushed buyers toward more affordable options. The Model S launched in 2012 as Tesla’s first ground-up built car, marking a pivotal moment in the company’s history. Musk’s privileged upbringing provided early financial and social advantages that helped shape his entrepreneurial path, including access to family wealth that reduced early risks.
The Model X faced particular challenges from the start. Its dramatic gullwing doors look impressive and can perform synchronized dance shows in marketing videos, but Musk admitted they’re incredibly difficult to manufacture. He compared the design to a “Fabergé egg” because of its delicate complexity. These doors contributed to reliability problems and production headaches since the vehicle first launched.
Tesla plans to transform the Fremont factory space currently used for Model S and Model X production into manufacturing lines for Optimus robots. The company aims to eventually produce one million Optimus units each year. Musk noted that the conversion will take longer than typical retooling for another car because the supply chain for robots is completely different. Optimus Gen 3 will debut in the coming months, with volume production expected before 2026 ends.
This represents a major strategic shift, as Tesla has updated its mission statement to emphasize robots creating “universal high income” for humanity.
Despite ending production, Tesla promises ongoing support for existing Model S and Model X owners. The Fremont factory’s workforce is actually expected to grow as Optimus production ramps up, though current robot manufacturing focuses more on learning than high-volume output.
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