Tesla Kills Model S, Model X to Build Optimus Robots
Tesla, whose global sales plummeted in 2025 and net profit dropped by 61% in the fourth quarter, is now taking a radical step by ending production of the Model S and Model X that helped put the EV maker on the map.
During the company's latest earnings call on Wednesday, CEO Elon Musk confirmed that the pair will retire in the spring and that the Fremont, California factory will instead build Optimus humanoid robots—further evidence that Tesla wants to move away from automobiles and become more of a technology company.
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“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 said.
The large sedan and midsize SUV were launched in 2012 and 2015, respectively. They received a significant update as recently as last year. The former, which starts at $139,990 in Canada, sold only 250 units in 2025, a decrease of 70.4%. The latter, starting at $149,990, found only 415 takers, a decrease of 60.1%.
As a replacement, Tesla plans to produce one million Optimus robots annually starting next year. The company also intends to focus its efforts on artificial intelligence, including a $2 billion USD investment in the xAI startup, as well as on autonomous driving, particularly with its robotaxi service rolling out to cities across the U.S. These cars will be assembled in Texas.
