Tesla will end production of the Model S and X

Tesla is killing Model S and Model X to free Fremont for Optimus robots, betting robots beat premium EVs.

Models S and X get sunset

• Tesla plans to end production in Q2 2026.
• The call came during a quarterly results discussion.
• These cars became low-impact sellers.

Why Fremont is changing

• Factory space shifts away from niche vehicles.
• Capacity gets reassigned to Optimus robots.
• Volume cars no longer justify that footprint.

Elon Musk’s framing

• Elon Musk tied the move to an autonomy-first strategy.
• AI-driven products are the new obsession.
• Traditional lineup expansion takes a back seat.

Sales mix reality check

• Model 3 and Model Y dominate deliveries.
• Other models barely register by comparison.
• Flagships lost relevance years ago.

Delivery numbers paint the picture

• 2025 saw over 1.58 million Model 3 and Y units.
• Other models combined sat near 50,850.
• The prior year showed the same imbalance.

Optimus ambitions

• Robots are slated for sale next year.
• Production targets aim absurdly high.
• Scaling pressure will hit fast.

Financial and market backdrop

• 2025 revenue slipped roughly three percent.
• BYD overtook Tesla in global EV sales.
• Cutting slow sellers trims complexity.

What this signals

• Premium EVs are no longer the focus.
• Robotics gets prime factory real estate.
• Fremont turns into a robot hub.