Tesla to Discontinue Model S and X for Robot Production

Tesla has decided to wind down production of the Model S and Model X electric car models. The company«s car plant in California will be repurposed for the production of humanoid robots, while support for already sold vehicles of these lineups will continue. Tesla CEO Elon Musk announced the intentions during a company earnings call broadcast on YouTube.

Musk said: «It»s time to wrap up the Model S and X programs, send them off into honorable retirement, as we are moving towards a future based on autonomy. So if you«re interested in buying a Model S or X, now is the time to place an order, because we expect production to wind down in the next quarter.»

Production of humanoid Optimus robots will begin at the California facility. The planned production volume is one million units per year.

The decision to reorient production comes after Tesla«s deteriorating market position. In early January, the company lost the title of the world»s largest electric car manufacturer, with its sales falling for the second year in a row. In 2025, Tesla delivered 1.64 million cars, which is 9% less than the previous year«s figure. The new leader is Chinese competitor BYD, which sold 2.26 million electric cars last year. To revive demand in the last quarter, Tesla launched sales of simplified versions of the Model Y and Model 3, introduced in October. The new Model Y is priced just below $40,000, and the Model 3 at less than $37,000. These models are expected to enhance the company»s competitiveness in Europe and Asia.

Earlier, on January 22, Elon Musk spoke at the World Economic Forum in Davos, Switzerland, where he predicted a future where robots will outnumber humans. He also stated that widespread sales of Optimus robots to consumers are likely to begin by the end of next year.