# Tesla Ends Production of Flagship Sedans and SUVs
Tesla has officially announced the end of production for its iconic Model S sedan and Model X SUV, marking a bold pivot to robotics and autonomy as confirmed by CEO Elon Musk during the Q4 2025 earnings call.[1][2][3] This decision clears the way for Optimus humanoid robot manufacturing at the Fremont factory, signaling Tesla's transformation from a traditional automaker to an AI-driven innovator amid declining EV sales.[1][2]
Musk Confirms End of Model S and Model X Era
Elon Musk described the closure as an "honorable discharge" for the flagship models, stating, “It is time to bring the S/X programs to an end. It’s part of our overall shift to an autonomous future.”[1][2][3] Production at Tesla's Fremont Factory in California, which has housed these lines since 2010, will wind down next quarter, with deliveries halting in Q2 2026 as inventory is liquidated.[1][2] Musk urged potential buyers to act quickly: “If you’re interested in buying a Model S or X, it’s best to do it now.”[1][3] The vehicles, once Tesla's premium flagships, saw deliveries plummet to just 11,642 units in Q4 2025 for "other models" including S, X, and Cybertruck—down 51% year-over-year—and only 50,850 for the full year versus 85,133 in 2024.[3]
Fremont Factory Repurposed for Optimus Robot Production
The Fremont Factory lines, operating below capacity amid an 89% utilization drop from 2021 peaks, will transition to produce up to one million Optimus robots annually.[1][2][3] Acquired from Toyota and Numly in 2010, this facility celebrates 15 years of EV production but now prioritizes Tesla's humanoid robot amid softening EV demand and competition from BYD.[1][2] Optimus, despite 2025 challenges like redesigns, overheating motors, and delays leading to the program head's exit, is set for Gen 3 unveiling in Q1 2026 with initially "agonizingly slow" output before scaling.[2][3] Tesla commits to ongoing service, software updates, and support for existing Model S and X owners.[1][2][3]
Strategic Shift Amid EV Market Challenges
Tesla's move underscores its evolution into a "physical AI company," betting on Optimus robots, driverless Robotaxis in Austin, and energy growth over legacy EVs.[3] Automotive sales dipped in 2025, with Q4 deliveries and profits declining amid global EV leadership shifting to BYD.[2][6] Recent 2026 models featured updates like simplified suspension and quieter cabins, but configurators now show dwindling inventory in regions like Europe and Israel.[2] This pivot frees resources for high-margin ventures as Tesla's Energy business surges and solar opportunities expand.[1]
Implications for Tesla Investors and EV Buyers
The announcement highlights Tesla's high-stakes focus on autonomy, with Cybercab production slated for April 2026 at slow initial rates.[6] While sentimental for fans of the originals that launched Tesla into luxury EVs over a decade ago, the shift prioritizes future tech over low-volume flagships that "do not hold major weight toward Tesla’s future goals."[1] Prospective buyers face a ticking clock, as new orders cease after Q1 2026.[3]
Frequently Asked Questions
What models is Tesla ending production of?
Tesla is ending production of the **Model S sedan** and **Model X SUV**, its flagship premium vehicles.[1][2][3]
When does Model S and Model X production end?
Production winds down next quarter, with deliveries stopping in **Q2 2026** as inventory is cleared.[1][2]
Why is Tesla stopping Model S and X production?
To reallocate Fremont Factory lines to **Optimus humanoid robot production** (up to 1 million units/year) as part of a shift to autonomy and AI.[1][2][3]
Will Tesla continue supporting existing Model S and X owners?
Yes, Tesla pledges ongoing **service, software updates, and maintenance** for current owners.[1][2][3]
How have Model S and X sales performed recently?
Q4 2025 deliveries for "other models" (S/X/Cybertruck) fell 51% year-over-year to 11,642 units; full-year premium models totaled 50,850 versus 85,133 in 2024.[3]
What replaces the Model S and X production lines?
The **Fremont Factory** lines transition to **Optimus robot manufacturing**, with Gen 3 unveiling in Q1 2026.[1][2][3]
🔄 Updated: 1/28/2026, 11:10:19 PM
**LIVE NEWS UPDATE: Tesla's Model S/X Shutdown – Tech Pivot to Robots Analyzed**
Tesla will cease Model S and X production by end of Q2 2026 at its Fremont factory, reallocating 100,000 units of annual capacity to Optimus humanoid robots targeting 1 million units yearly, as CEO Elon Musk stated: “It’s time to basically bring the Model S and X programs to an end with an honorable discharge” amid a shift to autonomy.[1][2][3] Deliveries of these flagships cratered to 11,642 "other models" (S/X/Cybertruck combined) in Q4 2025—down 51% YoY—and just 50,850 for ful
🔄 Updated: 1/28/2026, 11:20:19 PM
**Tesla News Update: Production Halt on Model S and Model X Signals Shift to Robotics**
Tesla will cease production of its flagship **Model S sedan** (launched 2012) and **Model X SUV** (launched 2015) by the end of **Q2 2026**, redirecting the **Fremont factory's 100,000-unit annual capacity**—long underutilized amid plummeting sales—to **Optimus humanoid robot** manufacturing, CEO Elon Musk announced on the Q4 2025 earnings call.[1][2] Deliveries of "Other Models" (including S/X, Cybertruck, and Semi) crashed from **23,640 units in Q4 2024** to **1
🔄 Updated: 1/28/2026, 11:30:23 PM
**LIVE NEWS UPDATE: Tesla Ends Model S and X Production Amid Autonomy Pivot**
Industry analysts view Tesla's Q2 2026 shutdown of **Model S sedan** and **Model X SUV** production—after just 11,642 "other models" (including S/X/Cybertruck) delivered in Q4 2025, down 51% YoY—as a pragmatic cull of low-volume flagships representing only ~4% of shipments, reallocating Fremont lines to produce **1 million Optimus robots annually**[1][2][5][6]. Elon Musk called it an "honorable discharge" for the pioneering vehicles launched in 2012 and 2015, stating, "It's time to brin
🔄 Updated: 1/28/2026, 11:40:23 PM
**Tesla Stock Dips Amid Reports of Flagship Sedan and SUV Production Halt**
Tesla shares traded around $433 during Tuesday's session, down from late-December 2025 highs near $480, as reports of ending production on flagship sedans and SUVs fueled concerns over moderating delivery growth and a second year of declining volumes[1][2]. Despite weaker 2026 net income forecasts dropping 56% to $6.1 billion, analysts raised their average 12-month price target to $409.49 from $337.99, with Piper Sandler’s Alexander Potter declaring “Deliveries barely matter anymore” amid focus on AI and robotics[2]. Wells Fargo reiterated an "underweight" rating with a
🔄 Updated: 1/28/2026, 11:50:22 PM
**Tesla Stock Surges Despite Reports of Ending Flagship Sedan and SUV Production**
Tesla shares climbed over 3% in after-hours trading Wednesday, reaching around $433 earlier in the day—well above analysts' raised average 12-month price target of $409.49—fueled by a $2 billion investment in Elon Musk's xAI and firm Cybercab robotaxi production plans amid weakening EV sales outlook.[1][2] Piper Sandler analyst Alexander Potter noted, “Deliveries barely matter anymore,” emphasizing AI and robotics progress, while Wells Fargo maintained an "underweight" rating with a $130 target, warning of "moderating delivery growth" and weak 2026 fundamentals.[1][7] Technical chart
🔄 Updated: 1/29/2026, 12:00:25 AM
**Tesla's discontinuation of Model S and Model X production by end of Q2 2026 opens the luxury EV segment to intensified competition from rivals like Rivian and Lucid Motors, whose fresh designs are already capturing market share amid Tesla's flagship sales slump to just 3% of its 1.59 million total deliveries in 2025.** [2][3][4] CEO Elon Musk cited the shift to autonomy and Optimus robot production at Fremont, noting the models' manufacturing complexity no longer justifies low-volume output as traditional automakers ramp up premium electrified SUVs and sedans.[1][3] "Sales of both flagship models have stagnated in recent years despite multiple... refreshes aimed at keeping them competitiv
🔄 Updated: 1/29/2026, 12:10:25 AM
Tesla will discontinue its **Model S sedan and Model X SUV** by the end of Q2 2026, CEO Elon Musk announced during Wednesday's earnings call, marking the end of the flagship vehicles that launched the company's premium electric lineup in 2012 and 2015 respectively.[1][2] The Fremont factory production lines will be repurposed to manufacture Tesla's **Optimus humanoid robots**, with capacity planned for up to one million units annually, as Musk framed the shift as part of Tesla's pivot toward autonomy.[1][5] Musk urged interested buyers to order now, stating it was time to bring the Model S and X programs "
🔄 Updated: 1/29/2026, 12:20:24 AM
**Tesla News Update: Technical Pivot from Flagships to Robots**
Tesla will end Model S and Model X production by Q2 2026 at its Fremont factory, repurposing the 100,000-unit annual capacity line—previously idling below 30,000 units in 2025 (e.g., Q4 2025 "Other Models" deliveries at 11,642, including Cybertruck/Semi)—for Optimus humanoid robots targeting 1 million units yearly with a fully new supply chain[1][3][4]. Elon Musk stated on the Q4 2025 earnings call, “It’s time to basically bring the Model S and X programs to an end with an honorable discharge, because we’re really movin
🔄 Updated: 1/29/2026, 12:30:25 AM
Tesla will discontinue its Model S sedan and Model X crossover by the end of Q2 2026, with production winding down next quarter, CEO Elon Musk announced during the company's fourth-quarter earnings call on Wednesday[2][4]. The decision shifts manufacturing at Tesla's Fremont, California facility toward producing up to one million Optimus humanoid robots annually, with Musk noting that "there's really nothing from the existing supply chain that exists in Optimus," requiring a completely new production infrastructure[2]. The move reflects sharply declining demand—Model S and X combined accounted for less than 3% of Tesla's 2025 deliveries, with actual S/X
🔄 Updated: 1/29/2026, 12:40:29 AM
**BREAKING NEWS UPDATE: Government Scrutiny Intensifies on Tesla's Model S and X Shutdown**
No official regulatory response has emerged yet to Tesla's announcement ending Model S and X production by Q2 2026 at its Fremont, California factory, where the lines will shift to Optimus robots[1][2]. California officials, overseeing the state's key EV manufacturing hub, have not commented publicly as of Wednesday's Q4 2025 earnings call, though environmental groups are already urging state regulators to probe potential impacts on EV incentives tied to the factory's 100,000-unit annual capacity, now running at a fraction[2]. Watch for updates from the California Air Resources Board, given Tesla's history of state subsidies for thes
🔄 Updated: 1/29/2026, 12:50:28 AM
**Tesla's discontinuation of Model S and X production by Q2 2026 intensifies EV competition, as these flagships—once comprising up to 3% of sales—faced slashed prices amid global pressure, with Tesla's Q4 2025 automotive revenue dropping 11% to $24.9 billion.[1][4][5]** Elon Musk noted the low-volume models (under 50,850 units in FY 2025, likely ~30,000 for S/X) are being phased out from Fremont's 100,000-unit capacity for Optimus robots, ceding luxury EV ground to rivals while Tesla pivots to autonomy.[2][3] "It’s time to bring the Model S and X program
🔄 Updated: 1/29/2026, 1:00:28 AM
**Tesla Stock Plunges 8% in After-Hours Trading After Model S/X Production Halt Announcement.** Following CEO Elon Musk's confirmation on the Q4 2025 earnings call that Tesla will end Model S and Model X production by Q2 2026 to prioritize Optimus robots, shares dropped sharply amid reports of Q4 revenue falling 3% to $24.9 billion and automotive revenue declining 11%.[1][2][5] Analysts cited the pivot from low-volume flagships—under 3% of sales—as a risky bet on robotics, with vehicle deliveries down 16% to 418,227 units last quarter, fueling investor concerns over near-term growth.[1][5]
🔄 Updated: 1/29/2026, 1:10:29 AM
**BREAKING: Tesla Ends Model S and X Production for Robot Pivot.** Elon Musk announced on the Q4 2025 earnings call that Tesla will discontinue its flagship Model S (launched 2012) and Model X (2015) by end of Q2 2026, repurposing Fremont factory lines to produce 1 million Optimus humanoid robots annually, as these low-volume models—likely under 30,000 units in 2025—represent less than 3% of sales.[1][2][3][4] Industry analysts call it "the end of an era," with The Verge noting Tesla's "accelerating transition from an automobile company to a technology company centered on autonomous vehicles and humanoi
🔄 Updated: 1/29/2026, 1:20:28 AM
**Tesla ends production of Model S and Model X as it pivots to robotics**, with CEO Elon Musk announcing Wednesday during the company's Q4 2025 earnings call that the iconic vehicles will cease production by the end of Q2 2026.[1][2] Musk stated it was time to bring "the Model S and X programs to an end with an honorable discharge" as Tesla redirects the Fremont factory's manufacturing capacity toward producing its Optimus humanoid robots.[1] Industry analysts characterize the move as a dramatic strategic shift, with one source noting that "Tesla is now accelerating its transition from an automobile company to a technology company centered on autonomous vehicles and humanoi