Tesla is discontinuing production of “Model S” and “Model X” electric cars. Instead, they will be assembled by robots

Tesla CEO Elon Musk reported the end of production of the “Model S” and “Model X” electric cars in the second quarter of 2026. These are some of the companyʼs most expensive models.

CNN and CNBC write about this.

“It’s time to retire the ʼModel Sʼ and ʼModel Xʼ programs with honor. If you want to buy a ʼModel Sʼ or ʼXʼ, now is the time to place an order,” Elon Musk said at his company’s financial results presentation.

According to him, the factory in Fremont, California, where these electric cars were made, will now develop humanoid “Optimus” robots. They plan to produce up to a million such robots per year.

Despite the closure of the “Model S” and “X” programs, the company plans to not only maintain, but also significantly increase the workforce at the California plant to ensure record production volumes of new products.

Musk also made it clear that selling electric cars could become a secondary business for Tesla.

This comes amid a significant decline in the companyʼs profits and sales. Teslaʼs net profit fell by 61% in the last quarter of 2025. For the year, it fell by 46% (minus $3.3 billion).

Electric vehicle sales also saw the biggest annual decline in the companyʼs history, with Teslaʼs 2025 profits falling just 30% from their record 2022 level of $12.6 billion.

CNN notes that the companyʼs reputation has suffered due to Muskʼs political activism and his ties to the US President Donald Trump. In addition, demand for electric vehicles in the US has decreased after the cancellation of the $7 500 tax credit.

Tesla also faces stiff competition, especially from Chinese manufacturers. In 2025, the company lost its status as the worldʼs largest electric car manufacturer to Chinaʼs BYD.

At the same time, as CNN notes, the “Model S” and “Model X” account for only about 3% of Teslaʼs global deliveries, so discontinuing their production will not significantly affect sales.

• In December 2025, Tesla reported the launch of a new, cheaper version of its “Model 3” electric car in Europe. This came two months after the model was launched in the US.

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