Tesla confirmed that production of its flagship Model S and Model X electric vehicles will cease by the second quarter of 2026, representing the end of a chapter for two of the company’s longest-running vehicles. CEO Elon Musk framed the decision as aligning with Tesla’s transition toward autonomy and robotics, emphasizing that the company is increasingly orienting itself toward future-focused technologies. The Fremont factory in California, which has manufactured these vehicles since their introduction, will be repurposed after the wind-down is complete.
Shifting Strategic Priorities for Tesla
The decision to discontinue the Model S and Model X stems from Tesla’s assessment of market dynamics and internal strategy. Sales of these legacy vehicles have declined relative to the company’s high-volume models, with the Model 3 and Model Y accounting for the vast majority of Tesla’s deliveries. As premium models accounted for a shrinking share of total production, maintaining dedicated lines for lower-volume vehicles became increasingly inefficient. At the same time, growing competition in the electric vehicle space has intensified pressure on older generation platforms, prompting Tesla to allocate resources where demand and future opportunities are strongest.
Retooling Fremont for Robotics and Automation
Following the discontinuation of the Model S and Model X, Tesla plans to convert the space within the Fremont factory previously used for those vehicles into facilities that will support production of its Optimus humanoid robots. Optimus is Tesla’s robotics initiative, designed with the long-term goal of producing general-purpose robots capable of performing a wide range of tasks. Tesla intends to scale up production significantly once the manufacturing infrastructure is reconfigured, positioning robotics and automated systems as central to its future product roadmap.
Tesla’s move reflects broader trends within the electric vehicle industry and the evolving priorities of automotive technology companies. As competition increases across EV segments, manufacturers reassess their product portfolios to align with consumer demand and profitability. The Model S and Model X, once headline vehicles in Tesla’s lineup, saw their share diminish as newer, more affordable models captured the majority of buyers. Meanwhile, the company has publicly emphasized autonomy, artificial intelligence, and robotics as key areas for long-term innovation, reinforcing its strategic shift beyond conventional vehicle manufacturing.
Continued Support for Existing Owners
Tesla has stated that it will maintain support for existing owners of the Model S and Model X vehicles, including parts, service, and software updates, even after production ends. Remaining inventory of these models will be available for purchase while supplies last, offering a final opportunity for customers interested in acquiring one of Tesla’s historic flagship electric vehicles.
