Tesla Inc. (NASDAQ: TSLA) to stop production of Model S and Model X, CEO Elon Musk The news was confirmed during the company’s fourth-quarter earnings call.
During Tesla’s fourth-quarter earnings call on Wednesday, Musk broke the news to investors and analysts that the automaker would be canceling two of its high-end products. “It’s time to end the Model S and X programs with honor,” Musk said, adding that Tesla intends to “basically cease production” of the vehicles next quarter.
The company has delivered an estimated 730,000 to 740,000 vehicles since its launch in 2012 and 2016.
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Musk also said that as Tesla “moves towards a self-driving future,” the Model S and X production lines at the Fremont, California, factory will be converted to the production of Optimus humanoid robots.
Talking about this, Musk also said that the Cybertruck will transform into a “fully autonomous line” in the future, adding that it can be used to transport goods autonomously.
Tesla has been unable to launch the Cybertruck so far, with the company struggling to move it out of showrooms and sales continuing to decline. In 2025, Cybertruck sales plummeted by 48%.
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Responding to a post on social media platform X on Wednesday, Musk said he was sad to see the two models being pulled from the automaker’s lineup. “The S and X will always continue to be in the fleet, just no longer produced, but that’s still a little sad,” he said.
The S and X will always continue to be in the fleet, just no longer produced, but it’s still a bit sad
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Tesla’s fourth-quarter financial report painted a positive picture for the company, with earnings per share of 50 cents, exceeding market expectations of 45 cents; quarterly revenue of $24.9 billion, also exceeding market expectations of $24.78 billion. Tesla also plans to launch the third-generation Optimus humanoid robot in the first quarter of this year.
