Tesla is reportedly ending the production of its flagship luxury electric vehicles, the Model S and Model X, to pivot focus towards humanoid robots, robotaxis, and full self-driving (FSD) technology. This significant shift, announced by CEO Elon Musk during the company's Q4 2025 earnings call, marks the conclusion of more than a decade of continuous production for the Model S and 11 years for the Model X, which were instrumental in popularizing long-range electric vehicles in the U.S. and setting industry benchmarks.

The decision comes amidst Tesla's first annual revenue decline since its inception. In 2025, the Model 3 and Model Y constituted approximately 97 percent of Tesla's total deliveries. Automotive revenue saw an 11 percent decrease compared to Q3, while total revenue was down by 3 percent. Year-over-year figures revealed a 10 percent drop in automotive revenues from 2024 and a 3 percent decrease in total revenues, with gross profit also down by 2 percent. Production of Model 3 and Y was reduced by 3 percent, and deliveries for these models fell by 14 percent, while “other models”—which would include the S and X—experienced a drastic 48 percent drop in production and a 51 percent decline in deliveries year-over-year.

During the Q4 2025 earnings call, Musk stated, “It’s time to basically bring the Model S and X programs to an end with an honorable discharge.” He advised interested buyers in the U.S. to order these models soon, noting that Tesla had already been phasing out their availability in China and Europe since early 2025. The production lines at Tesla’s Fremont plant previously dedicated to these luxury vehicles will now be repurposed for the Optimus humanoid robot. However, Musk conceded that Optimus is still in its research and development phase, currently limited to performing “basic tasks” within the factory and not yet providing material use.

Beyond the Optimus robot, Musk reiterated that robotaxis and FSD will be Tesla’s primary value drivers