A Model X is displayed at a Tesla showroom on February 13, 2021 in Beijing, China.
VCG | Visual Group China | Getty Images
Tesla CEO Elon Musk announced Wednesday that the automaker is ending production of its Model S and X vehicles and will use the Fremont, Calif., factory to build Optimus humanoid robots.
“It is time to end the Model S and X programs with an honorable discharge,” Musk said of the company’s fourth-quarter report. winnings call. “If you want to buy a Model S and X, now is the time to order it.”
After the original Roadster, the two models are Tesla’s oldest vehicles, and in recent years the company has cut prices as global competition for electric vehicles has intensified. Tesla began selling the Model S sedan in 2012, and the Model X SUV three years later.
On Tesla’s website, the Model S currently starts at around $95,000, while the Model X starts at around $100,000.
Tesla’s most popular models are the 3 and Y, which account for 97% of the company’s $1.59 million. deliveries last year. The Model 3 now starts at around $37,000 and the Model Y at around $40,000. Tesla launched more affordable versions of its vehicles late last year.
In its earnings announcement Wednesday, Tesla reported its first annual revenue decline on record, with sales declining in three of the last four quarters. Musk has attempted to shift the focus away from traditional electric vehicles and toward a future of driverless cars and humanoid robots, areas in which the company currently has virtually no business.
A crowd watches and interacts with a Tesla Optimus robot in front of the Nasdaq Market site in New York, United States, October 27, 2025.
Brendan McDermid | Reuters
Tesla is developing Optimus with the goal of one day selling it as a bipedal, intelligent robot capable of everything from factory work to babysitting. The company said in the release that it plans to unveil the third generation Optimus this quarter, its “first model intended for mass production.”
Musk said on the call that Tesla was replacing its S and X production line in Fremont “with a million-unit-per-year line from Optimus.”
“Because it’s a completely new supply chain,” Musk said, “there’s really nothing from the existing supply chain that exists in Optimus.”
Tesla plans to increase staffing levels at its Fremont factory, Musk added, “and significantly increase production.”
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