Tesla Halts Model S and Model X Production to Focus on Humanoid Robots

On May 10, 2024, Tesla announced that the final Model S and Model X rolled off the production line at its Fremont factory in California, marking the end of 14 years of Model S production and 11 years for the Model X. Tesla had previously signaled during its January 29, 2026 earnings call that both models would cease production by the second quarter of 2026. On April 1, the company confirmed it had stopped accepting new custom orders globally for these vehicles, offering only existing inventory. Currently, Tesla’s China website has removed the customization configurators for the Model S and Model X. The Model S is no longer available for purchase, while limited Model X inventory remains, priced between RMB 882,000 and RMB 940,000. The last Model X produced will be painted in a special “Pomegranate Red” finish and feature a commemorative plaque, preserved as a collector’s edition. The discontinuation stems largely from persistently declining sales. In 2025, Tesla delivered 1.636 million vehicles globally, with Model 3 and Model Y accounting for approximately 1.6 million units. Deliveries of “other models”—primarily Model S and Model X—totaled only around 50,000 units, representing less than 3% of total deliveries. Excluding Cybertruck and Semi, actual Model S/X deliveries are estimated at roughly 30,000 units, with fewer than 2,000 sold annually in China. Since their launches in 2012 (Model S) and 2015 (Model X), neither model has undergone a full platform refresh and still relies on a 400V electrical architecture—now technologically behind competitors like the Porsche Taycan and Mercedes-Benz EQS, which use 800V platforms. Additionally, Tesla has not implemented significant interior or feature upgrades, further eroding the models’ competitiveness. From a capacity standpoint, the Fremont factory had allocated annual production capacity of up to 100,000 units for Model S/X, but utilization remained below 30% for years. Against the backdrop of a 3% decline in Tesla’s 2025 revenue and an 8.6% year-over-year drop in deliveries, shutting down underperforming production lines became a logical move. Analysts note that Model S/X are high-cost, low-volume vehicles, and their discontinuation will have minimal impact on overall revenue, allowing Tesla to redirect resources toward the higher-margin Model 3 and Model Y. Strategically, Tesla is shifting its focus from automotive manufacturing toward “physical AI.” The former Model S/X production lines in Fremont will be converted within four months into a production facility for the Optimus humanoid robot, targeting an annual output of 1 million units. Elon Musk stated that the factory space currently used to produce just 30,000 Model S/X vehicles per year could instead support the production of 1 million robots—a far more valuable proposition. In 2026, Tesla plans to invest over $20 billion, primarily in AI training supercomputing centers, Optimus production lines, and expansion of its 4680 battery manufacturing. Musk emphasized that the company’s future value will hinge on the scale and efficiency of its AI deployment—not vehicle deliveries. On the automotive front, Tesla will center its efforts on Model 3 and Model Y, while advancing the Cybercab autonomous ride-hailing service, the Cybertruck autonomous freight platform, and a next-generation Roadster sports car to serve the premium performance segment.