Tesla to End Production of Model S and Model X
Tesla (NASDAQ: TSLA) will cease production of its high-end Model S sedan and Model X crossover starting in the second quarter of this year. CEO Elon Musk announced this decision during a recent earnings call, indicating that the space will be repurposed for the assembly of the Optimus robot. The discontinuation follows a trend, as Tesla stopped accepting new orders for these models in China last April due to high tariffs and has effectively stopped new orders in Europe since late 2025 due to low demand.
In 2025, deliveries combined for the Model S, Model X, and the upcoming Cybertruck amounted to 50,850 units, or just over 3% of Tesla’s total deliveries of 1.6 million vehicles. This strategic shift illustrates Tesla’s ambition to transition from an electric vehicle manufacturer to a broader technology company, focusing on robotics and AI.
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