Tesla's two high-end models, the Model S and X, will be phased out next quarter, CEO Elon Musk said on a conference call to discuss 2025 earnings last night.
Part of the Fremont, California, factory that was previously used to build both models will be used to build the Optimus robot, reports Tim Levin of InsideEVs USA. This brings the end of production of Tesla's two longest-running models. Elon Musk said it was a sad moment, but "it's time for the Model S and Model X programs to end in all their glory." The move is part of Tesla's transformation into a specialist in autonomous driving and robotics. The Fremont factory is expected to produce a million Optimus robots a year instead of cars, Musk said.
Both models were already withdrawn from the market in Europe in the summer of 2025. However, this was a temporary situation; in the fall, the cars reappeared in the German configurator. Now, however, the end seems to be truly imminent. Both models, which cost well over 100.000 euros, ultimately only accounted for a small share of sales anyway.
Tesla's first electric car was the Roadster, which was introduced in 2008, but the Model S was the first model to be produced in large quantities. The luxury sedan with a three-door hatchback was launched in 2012. It won numerous awards and helped to popularize electric vehicles in the market. The Model X followed in 2015; it is a large SUV with three rows of seats and a noticeable rear hatch. The production shutdown is in line with the current decline in demand in the US electric car market. A number of other models have also been discontinued recently.
Tesla's most important revenue streams are the Model 3 and Model Y. Together, they sold 1,6 million units last year. Sales of "other models," which include the Model S and X, Robotaxi, and Semi, totaled just 50.850 units. Yesterday, Wednesday, Tesla confirmed that the Cybercab and the new Roadster are still in development.
