AT. BREAKING: Elon Musk Announces End of an Era — Tesla to Kill Iconic Model S & Model X as Company Shifts Into Autonomy and Robotics
Tesla CEO Elon Musk has confirmed that the company will discontinue production of its flagship electric vehicles, the Model S sedan and Model X SUV, by the second quarter of 2026 in a stunning strategic pivot toward autonomous technology and robotics.
In a statement during Tesla’s Q4 2025 earnings call, Musk said it was “time to bring the Model S and Model X programs to an end with an honorable discharge” as the company accelerates its transition into an autonomy-first future.
The decision marks a dramatic turning point for Tesla’s product lineup. The Model S, which helped establish electric vehicles as performance machines, and the futuristic Model X — known for its falcon-wing doors — have been mainstays of the Tesla brand for over a decade but now account for only a tiny fraction of total deliveries.
Rather than allocate precious manufacturing capacity to aging luxury vehicles, Tesla plans to repurpose its Fremont, California factory production lines to build the Optimus humanoid robot, with ambitions to eventually produce up to one million units per year.
Musk’s justification for the move underscores his singular focus on autonomy: by ending the S and X programs, he argues Tesla can dedicate more resources to technologies he sees as defining the next era — from fully autonomous robotaxis to humanoid robots designed for everyday and industrial use.
Industry and Market Reactions
– Tesla shareholders saw a lift in stock following the earnings announcement, buoyed by strong overall revenue performance and Musk’s announcement of significant investment in artificial intelligence and robotics.
– Analysts warn the pivot carries risks; Tesla’s automotive revenue declined in 2025, and its most profitable segment historically has been vehicles like the Model S and Model X despite slowing sales.
– Meanwhile, rivals — particularly Chinese EV manufacturers — continue to gain ground in global market share.
What This Means for Owners and the EV Market
Tesla says it will continue to support existing Model S and Model X owners with service and parts, even after assembly lines shut down. Musk also encouraged anyone still interested in purchasing the final units to act quickly before inventories deplete.
The move underscores a stark transformation: Tesla is no longer just an electric carmaker, but arguably a broader technology company staking its future on AI, autonomy, and robotics — exactly the kinds of bets Elon Musk has been making for years.
As the EV world watches a defining chapter close, the company that helped popularize electric cars is now reinventing its identity yet again.
