AUSTIN, United States — Tesla has announced a major shift in its long-term strategy, confirming it will end production of its Model S sedan and Model X sport utility vehicle by mid-2026 as the company pivots toward artificial intelligence, robotics, and autonomous technologies.
The decision was disclosed during Tesla’s latest earnings briefing, where Chief Executive Officer Elon Musk said the company’s future growth will increasingly come from humanoid robots and autonomy rather than expanding its lineup of traditional passenger vehicles.
The move marks the beginning of the end for two of Tesla’s oldest and most iconic models.
The Model S, launched in 2012, helped establish Tesla as a serious player in the global electric vehicle market, while the Model X introduced distinctive features such as Falcon-wing doors and advanced driver-assistance systems.
Is Tesla still producing cars?
Yes. Tesla is not exiting vehicle manufacturing or sales. The company will continue producing and selling its high-volume models — the Model 3, Model Y, and the Cybertruck, which remains in limited but gradually expanding production.
These vehicles account for the vast majority of Tesla’s deliveries and revenue.
By contrast, the Model S and Model X now represent only a small fraction of Tesla’s overall sales. Industry analysts say demand for premium, high-priced electric vehicles has softened in recent years as consumers increasingly favour more affordable, mass-market EVs.
Tesla said winding down the two models will allow it to reduce costs associated with low-volume production and free up manufacturing space at its Fremont, California, factory.
The company plans to repurpose those production lines to support the development of Optimus, Tesla’s humanoid robot, as well as other AI-driven projects.
Musk has repeatedly stated that Tesla’s long-term ambition is to evolve from being primarily an automaker into a technology and robotics company.
He has said future growth areas include humanoid robots for industrial and household use, fully autonomous robotaxis, and advanced artificial intelligence systems built on Tesla’s self-driving software.
“This redirection reflects Tesla’s belief that autonomy and robotics could eventually become much larger businesses than vehicle manufacturing,” Musk said during the briefing.
The shift comes as global competition in the electric vehicle market intensifies, particularly from Chinese manufacturers offering lower-priced models.
Tesla said existing owners of the Model S and Model X will continue to receive full support, including servicing, software updates, and access to spare parts.
However, the company warned that new orders for the two models may become increasingly limited as production gradually winds down.
The announcement signals a defining moment in Tesla’s evolution, underscoring a broader transformation from a car-focused manufacturer into a company betting heavily on artificial intelligence, robotics, and autonomy to drive its next phase of growth.
