Elon Musk Confirms Tesla Will Stop Model S and Model X Production

Summary

Tesla will end production of the Model S sedan and Model X SUV next quarter, CEO Elon Musk announced on an earnings call. The company intends to repurpose space at its Fremont, California, plant to build Optimus humanoid robots and to advance autonomous programmes such as the Cybercab robotaxi. Tesla says it will continue to support existing owners even as it shifts manufacturing focus toward its more affordable Model 3 and Model Y, the upcoming Cybertruck, and robotics and self-driving services. The move follows weaker vehicle deliveries and a dip in annual revenue despite an earnings beat.

Key Points

Tesla will wind down Model S and Model X production next quarter and stop new builds.
Fremont factory space will be repurposed to produce Optimus humanoid robots and support autonomy efforts, including Cybercab robotaxi development.
Tesla will continue after-sales support for existing Model S and Model X owners.
The decision follows weaker vehicle deliveries and lower annual revenue, although earnings exceeded expectations.
Company strategy now centres on Model 3, Model Y, Cybertruck, robotics and autonomous services.
Tesla is pursuing related partnerships and pilots (Uber Freight, DHL Semi, self-driving delivery tests) that tie into its broader shift.

Context and relevance

This is a strategic pivot from high-end flagship vehicles to robotics and autonomy. For supply chain, manufacturing and logistics professionals, the change could alter demand for components, affect supplier loadings, and change plant layouts and workforce requirements. Repurposing a major assembly plant like Fremont signals Tesla’s confidence in robotics/autonomy as future revenue streams and may accelerate investments in automation, AMRs and associated software. Competitors and tier suppliers will need to reassess forecasts, spare-parts inventories and service networks tied to S and X models.

Author style

Punchy: This isn’t just a model cut — it’s a clear, high-stakes pivot. If you work in manufacturing, warehousing or automotive supply chains, read the details: this decision will ripple through parts demand, factory capacity and staffing plans.

Why should I read this?

Short version: because Elon’s pulled the plug on two headline models to make room for robots. If your job touches production planning, spare parts, logistics or automation, this could change what you buy, store and staff for. Worth two minutes — saves you reading the full call.