Tesla CEO Elon Musk made a stunning announcement, confirming the company will begin phasing out its two most iconic electric vehicles, the Model S and Model X, this year, as reported by NBC News. These cars aren’t just getting phased out; the factory that built them is being converted into a production line for something completely different: humanoid robots.
Musk revealed the phase-out during a call with investors and Wall Street analysts. He said the move is part of a major overhaul designed to shift Tesla’s focus entirely toward an autonomous future driven by robotaxis and, more bizarrely, the company’s Optimus line of robots. Musk was explicit about the timeline, stating, “We expect to wind down S and X production next quarter and basically stop production.”
This really signals the end of an era. The Model S, introduced in 2012, and the Model X, which followed in 2015, were the vehicles that proved electric mobility could be mainstream. They helped push EVs out of the consumer fringe and fueled Tesla’s rise from a scrappy startup to the most valuable automaker on the planet. The Model X, a crossover SUV, followed a few years later. It didn’t have quite the flawless start the S did, but it certainly cemented Tesla’s place in the SUV market.
Now, that history is literally being wiped clean to make room for bots
Musk confirmed that the factory in Fremont, California, which has been dedicated to manufacturing these two vehicles, will instead be converted into the primary production site for the Optimus line of humanoid robots. These robots are definitely not on the consumer market yet, making this pivot a fascinating, high-risk bet on a completely new form of manufacturing.
The timing of this dramatic shift comes as Tesla released its financial results for the final three months of last year. While the company managed to top analysts’ expectations for earnings, the results hinted at some underlying weakness. Total revenue for the previous year was down 3% compared to its 2024 revenue.
Tesla’s overall vehicle sales have suffered in the past year, thanks to a combination of factors. Customers have reacted negatively to Musk’s deepening involvement in right-wing politics, and global drivers now have far more choices thanks to stiff competition, especially from companies based in China. Tesla even tried to generate more demand back in 2023 by cutting prices on both the Model S and the Model X, but those efforts clearly weren’t enough to save the programs.
Despite the sad news for the iconic car lines, investors seemed to like the focus on the future, as the company’s share price was up about 2% in after-hours trading following the announcement. Musk himself acknowledged the sentimental loss when discussing the phase-out. He admitted, “That is slightly sad, but it’s time to bring the S and X programs to an end, and it’s part of our overall shift to an autonomous future.”
Published: Jan 29, 2026 01:30 pm