Tesla to End Model S and X Production Next Quarter as It Pivots to Robotaxis and Robots
The shift follows a difficult 2025 with falling revenue alongside BYD taking the EV sales lead.
Overview
- Elon Musk confirmed production of the premium Model S and Model X will cease next quarter as part of a strategic refocus on autonomy and robotics.
- Fremont’s Model S and X lines will be replaced by an Optimus factory with a long‑term goal of producing up to one million humanoid robots per year.
- Tesla plans to begin Cybercab robotaxi production in 2026, with vehicles designed without a steering wheel or pedals.
- Owners of the discontinued models will continue to receive long‑term technical support, software updates and parts supply.
- Model 3 and Model Y made up about 97% of roughly 1.6 million 2025 deliveries, while annual revenue fell about 3% to $94.8 billion and profit dropped roughly 46% to about $3.8 billion as BYD overtook Tesla in global EV sales.