Tesla will stop the production of the Model S and Model X in the second quarter of 2026. The announcement came from CEO Elon Musk during the company’s fourth-quarter earnings call.
While it might come as a shock to Tesla enthusiasts, there are a few good reasons behind the company’s decision to halt production (and give prospective buyers enough time to get their hands on one).
Model S and Model X are crucial to Tesla’s history
Launched in 2012, the Model S redefined electric cars in the United States. It proved that EVs could outperform luxury sedans, which were quite popular at the time. Offering long-range, rapid acceleration, and OTA updates with the Model S helped Tesla gain a share of the premium auto market.
The Model X arrived in 2015, bringing Tesla’s tech-first approach to the family SUV segment. The model is known for its falcon-wing design, spacious interiors, and practicality. It quickly became one of the most popular three-seater electric SUVs in the American market.
Both the Model S and Model X played a crucial role in establishing Tesla, not just in the United States but also in other markets. In fact, these were the automaker’s primary volume sellers before the Tesla Model 3 and Model Y arrived in 2017 and 2019, respectively, and disrupted the global EV market.
Over the years, Tesla stopped reporting sales figures for the Model S and Model X separately and instead included them in the “Other Models” category. In 2025, the models accounted for only 2.8% of the automaker’s total revenue and 1.8% of total deliveries.
Tesla isn’t killing cars; its ambition for automated robots is far bigger
The consistently low sales are one of the reasons behind Tesla pulling the plug on the models. However, it is also related to the company’s focus on automated robots.
“We are going to convert that production space to an Optimus factory. It’s part of our overall shift to an autonomous future,” said Musk in the earnings call, referring to the Fremont factory space, which produced the Model S and X.
This way, the company reduces the production costs associated with manufacturing the models, reallocates resources to Optimus — a product that could generate much more revenue — and saves the additional cost of setting up a new facility for Optimus.
“S and X will always continue to exist in the fleet, just not in production, but it’s still a little sad,” writes Elon Musk in an X post. For now, the models are available for buyers until the second quarter of 2026.