Tesla parks models S and X to bet big on humanoid robots

Elon Musk-led Tesla is preparing to retire two of the vehicles that defined its early rise, as the electric carmaker reshapes its manufacturing priorities around humanoid robotics.

“It's time to basically bring the Model S and X programs to an end with an honorable discharge,” said the tech mogul. “If you’re interested in buying a Model S and X, now would be the time to order it.”

Speaking during the company’s latest earnings call on Wednesday, CEO Musk said production of the Model S and Model X would be phased out, potentially beginning next quarter.


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As such, Tesla said customers will still be able to purchase the vehicles for a limited period, and that owners will continue to receive support after production ceases.

The decision marks the end of Tesla’s longest-running car lines, both of which played a formative role in turning the company into a global electric vehicle pioneer.

Introduced more than a decade ago, the Model S set new benchmarks for electric performance and range, while the Model X followed with distinctive design features and premium positioning.

Over time, however, their relevance has diminished as Tesla’s focus shifted to higher-volume, lower-cost vehicles.

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The retirement of the two models will free up space at Tesla’s Fremont, California factory, which the company plans to convert into a dedicated facility for Optimus, its humanoid robot programme.

According to the CEO, the dismantling of the Model S and Model X assembly line at its Fremont facility and subsequent replacement of it with a dedicated Optimus production line will lead to one million units annually.

Tesla’s decision comes at a moment of financial strain, with the company reporting its first-ever annual decline in revenue.

Musk has argued that driverless vehicles and humanoid robots will eventually eclipse traditional automobiles as the company’s core business.