Musk announces end of Tesla Model S and Model X production in favor of robots

Tesla CEO Elon Musk announced on Wednesday that the company will begin phasing out its Model S and Model X electric vehicles this year and retool its California factory to produce humanoid robots, UNN reports with reference to NBC News.

Details

This announcement marks the end of an era. These two models - introduced in 2012 and 2015, respectively - helped bring electric vehicles into the mainstream. They also contributed to Tesla's transformation from a startup into the world's most valuable automaker.

Musk announced the phase-out during a conference call with investors and Wall Street analysts, stating that it is part of his efforts to restructure Tesla's operations to focus on robotaxis and humanoid robots.

"We expect to wind down S and X production in the next quarter and effectively stop it," he said, adding that the company will continue to support these vehicles as long as people are using them.

"It's a little sad, but it's time to end the S and X programs, and that's part of our overall transition to an autonomous future," he said.

Musk announced the change simultaneously with the release of Tesla's financial results for the last three months of last year. The company exceeded analysts' expectations for profit but showed signs of weakness: total revenue last year decreased by 3% compared to 2024 revenue.

The stock price rose by approximately 2% in after-hours trading.

Tesla's car sales have generally suffered over the past year as customers reacted to Musk's involvement in right-wing politics, and competitors from China and other countries provided drivers worldwide with more choices.

Musk stated that Tesla will retool its factory in Fremont, California, from an automotive plant to a production site for its planned Optimus robot line. These robots are not yet for sale.

Musk: Tesla's future depends on Optimus robots, not electric cars02.09.25, 15:13 • 4835 views

Addition

The Model S appeared at a time when electric vehicles occupied a tiny niche in the automotive market, and many industry analysts doubted whether there would be sufficient demand to support the production of exclusively electric vehicles. But the Model S soon topped owner satisfaction surveys and gained a loyal following. A few years later, the Model X, a crossover, appeared, which initially received negative reviews for reliability.

In 2023, Tesla lowered prices for both the Model S and Model X in an effort to boost demand.