Tesla is discontinuing the Model S and Model X—the luxury vehicles that transformed the company from startup curiosity into automotive powerhouse. Production ends in Q2 2026, marking the end of an era that began when the Model S first proved electric cars could be genuinely desirable rather than environmental penance. The Fremont factory will pivot to manufacturing Optimus humanoid robots instead, because apparently Tesla would rather chase sci-fi dreams than maintain proven revenue streams.
The End of Tesla’s Credibility Era
Two vehicles that legitimized electric luxury are heading to automotive history.
The Model S launched in 2012 as Tesla’s bet that people would actually want an electric sedan—not just tolerate one for environmental reasons. It worked spectacularly, forcing BMW and Mercedes to take EVs seriously. The Model X followed in 2015 with those falcon-wing doors that still turn heads at school pickup lines.
Together, these vehicles generated the cash flow that funded Tesla’s mass-market expansion. But sales collapsed to roughly 30,000 combined units in 2025, operating at a fraction of the factory’s 100,000-unit capacity. The “other models” category, which includes both vehicles plus Cybertruck and Tesla Semi, totaled just 59,900 deliveries in 2025—a 36% drop from 2024.
Welcome to the Robot Factory
Musk plans to manufacture one million humanoid robots annually where luxury cars once rolled off the line.
Instead of refreshing aging platforms, Tesla is making a complete strategic pivot. The Fremont production line will manufacture Tesla Optimus robots—up to one million units per year. “It’s time to basically bring the Model S and X programs to an end with an honorable discharge, because we’re really moving into a future that is based on autonomy,” Elon Musk announced during the Q4 2025 earnings call.
Tesla promises to unveil Optimus 3, described as the first mass-production design, within three months. The transition represents Tesla’s most dramatic strategic shift since abandoning the Roadster for mass-market vehicles.
When Luxury Becomes Liability
Competitors exposed how Tesla’s flagship vehicles had become technological dinosaurs.
The writing was on the wall when Lucid Air started outclassing the Model S and Rivian’s R1S made the Model X feel ancient. Tesla’s June 2025 refresh felt like putting lipstick on a decade-old platform—new paint colors and ambient lighting don’t fix fundamental architecture problems. Despite a $5,000 price increase pushing the Model S to $84,990, buyers stayed away.
Meanwhile, Tesla’s Q4 2025 financials showed revenue down 3% to $24.9 billion and net income plunging 61% to $840 million, even as stock prices climbed 9% on robot hype. The disconnect between current performance and future promises couldn’t be starker.
Your Last Chance for Automotive History
Tesla’s luxury era ends with a purchase deadline most didn’t see coming.
If you’ve been considering a Model S or Model X, Musk’s message is clear: order now or miss out forever. Tesla commits to supporting existing owners “for as long as people have the vehicles,” but new production stops when current inventory depletes.
It’s a fascinating gamble—trading established luxury market presence for speculative robotics revenue. Whether Tesla’s robot ambitions materialize faster than competitors fill the premium EV vacuum they’re creating remains the trillion-dollar question.
