Tesla axing Model S and Model X so it can make robots

Words: Kyle Cassidy

The Model S and X are officially being retired as the brand pivots toward an AI and robotics-led future, so says the leader of Cult Tesla.

Musk confirmed during the company’s Q4 2025 earnings call this week that the Model S sedan and Model X SUV will be discontinued globally next quarter. The two models have only been available in LHD for the past few years, so it makes no difference for Kiwi buyers. 

The move marks a shift for Tesla as it transitions from a car manufacturer to a dedicated AI and robotics powerhouse. And here’s us still waiting for the Roadster.

The production lines at Tesla’s Fremont facility in California, currently dedicated to the S and X, are slated for an overhaul. Instead of EVs, the factory will be repurposed to produce the Optimus humanoid robot.

Musk revealed ambitious plans for the site, aiming to eventually churn out 500,000 Optimus units annually. So expect about 50 to be made in the next five years. 

“It’s time to basically bring the Model S and X programs to an end with an honorable discharge, because we’re really moving into a future that is based on autonomy,” Musk stated during the call.

While acknowledging it was a “sad” moment for the company, Musk was firm that the transition is necessary for Tesla’s survival in an increasingly autonomous landscape.

Deliveries of the Model 3 and Model Y totalled 1.6 million last year, while the S, X and Cyberflop wracked up just 50,000 all told.   

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