Tesla's Electric Legacy to Be Replaced by Robots as Model S and X Production Comes to an End
In a surprise move, Tesla CEO Elon Musk has announced that production on the iconic electric vehicles Model S and X will be phased out next quarter in favor of more futuristic endeavors - namely, the manufacturing of humanoid robots. While customers can still purchase these aging models for now, it's clear that Tesla sees its future in autonomy.
The decision to discontinue the Model S and X comes as no surprise, given their declining sales figures. In 2025, for example, the company delivered over 1.5 million Model 3 and Y vehicles, a stark contrast to the mere 418,000 units of the older models sold that year. Even China, once one of Tesla's key markets, saw an end to Model S and X sales in mid-2025 due to tariffs imposed on US-made imports.
Musk has long touted the Optimus humanoid robot as a revolutionary product with massive potential, claiming it will become "the biggest product of all time." However, early demonstrations have been somewhat lackluster, leading many to question whether Tesla's lofty ambitions can be met. The company plans to produce 1 million Optimus robots in the current Model S and X production space, but doubts remain about its ability to meet this goal.
In a surprising twist, Tesla has also invested $2 billion in Musk's other venture, xAI, which is seen as a direct competitor by some shareholders. A contentious lawsuit was filed by Tesla's shareholders in 2024, who claim that starting the AI company constitutes a breach of trust.
As part of its earnings report for the 2025 fiscal year, Tesla announced a $1 trillion pay package for Musk on condition that the company reaches a market value of $8.5 trillion. With production on Model S and X set to come to an end, investors are left wondering what the future holds for this once-iconic electric vehicle brand.
The shift towards robots marks a significant turning point in Tesla's history, as it transitions from a pioneer in electric vehicles to a leader in autonomous technology. As the company embarks on this new journey, one thing is certain: only time will tell if Tesla's vision of a robotic future will become a reality.
In a surprise move, Tesla CEO Elon Musk has announced that production on the iconic electric vehicles Model S and X will be phased out next quarter in favor of more futuristic endeavors - namely, the manufacturing of humanoid robots. While customers can still purchase these aging models for now, it's clear that Tesla sees its future in autonomy.
The decision to discontinue the Model S and X comes as no surprise, given their declining sales figures. In 2025, for example, the company delivered over 1.5 million Model 3 and Y vehicles, a stark contrast to the mere 418,000 units of the older models sold that year. Even China, once one of Tesla's key markets, saw an end to Model S and X sales in mid-2025 due to tariffs imposed on US-made imports.
Musk has long touted the Optimus humanoid robot as a revolutionary product with massive potential, claiming it will become "the biggest product of all time." However, early demonstrations have been somewhat lackluster, leading many to question whether Tesla's lofty ambitions can be met. The company plans to produce 1 million Optimus robots in the current Model S and X production space, but doubts remain about its ability to meet this goal.
In a surprising twist, Tesla has also invested $2 billion in Musk's other venture, xAI, which is seen as a direct competitor by some shareholders. A contentious lawsuit was filed by Tesla's shareholders in 2024, who claim that starting the AI company constitutes a breach of trust.
As part of its earnings report for the 2025 fiscal year, Tesla announced a $1 trillion pay package for Musk on condition that the company reaches a market value of $8.5 trillion. With production on Model S and X set to come to an end, investors are left wondering what the future holds for this once-iconic electric vehicle brand.
The shift towards robots marks a significant turning point in Tesla's history, as it transitions from a pioneer in electric vehicles to a leader in autonomous technology. As the company embarks on this new journey, one thing is certain: only time will tell if Tesla's vision of a robotic future will become a reality.