From NBC News: Tesla CEO Elon Musk said Wednesday that the company would begin phasing out its Model S and Model X electric vehicles this year and retool a California factory to produce humanoid robots instead.
Tesla vehicles’ sales have suffered overall in the past year, as customers reacted to Musk’s involvement in right-wing politics and as competitors from China and elsewhere have given global drivers more choices.
Musk said that Tesla would convert its factory in Fremont, California, from an auto plant into the manufacturing site for the planned Optimus line of robots. Those robots are not yet on the market.
The Model S arrived at a time when electric cars were a tiny niche in the vehicle market, with many industry analysts doubting whether there was enough demand to sustain an electric-only automaker. But the Model S soon topped owner satisfaction surveys and developed a loyal following. The Model X, a crossover SUV, followed a few years later and initially received poor reviews for reliability.
Musk announced Tesla’s phase-out during a call with investors and Wall Street analysts, saying it was part of his effort to overhaul Tesla’s operations to focus on robotaxis and humanoid robots.
“We expect to wind down S and X production next quarter and basically stop production,” he said.
Musk’s announcement marks the end of an era, as the electric cars fueled Tesla’s rise and made the green product mainstream.
“That is slightly sad, but it’s time to bring the S and X programs to an end, and it’s part of our overall shift to an autonomous future,” Musk said.
Tesla will continue to support the vehicles for as long as people have them, he promised.
Tesla’s financial results were also released, revealing a 3% decrease in total revenue for the year from 2024, despite surpassing earnings expectations.
Elon Musk says $TSLA will halt Model S and X production.
Those facilities will be converted into Optimus robot factories. pic.twitter.com/xv9iPjzCKU
— Shay Boloor (@StockSavvyShay) January 28, 2026
$TSLA is ending production on two of its most well-known models. 🚗https://t.co/WnslUa5g5B pic.twitter.com/DRg7mBG0a0
— Yahoo Finance (@YahooFinance) January 28, 2026
Read more at NBC News
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