Tesla retires Model S and Model X
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The following report was written by Gemini AI and reviewed by an editor at Sypnotix.PALO ALTO, CA — Tesla, Inc. officially announced today that it will discontinue production of its longest-running flagship vehicles, the Model S sedan and Model X SUV. The decision, described by CEO Elon Musk as an "honorable discharge" for the aging pioneers, marks the end of an era for the vehicles that defined the modern electric vehicle revolution.
Pivoting to a "Physical AI" Company
During Tesla’s Q4 2025 earnings call, the company confirmed that production of the Model S and Model X at the Fremont, California facility will wind down through the second quarter of 2026. This strategic shift follows a year in which automotive revenues fell by 11%, prompting the company to reallocate resources toward high-growth frontiers: autonomous Robotaxis and the Optimus humanoid robot.
The Fremont production lines currently dedicated to the Model S and X will be completely overhauled. Tesla plans to convert the space into a high-volume manufacturing hub for Optimus Gen 3, with an ambitious target of producing one million units annually.
"The Model S and X were instrumental in proving that electric cars could be superior to gasoline alternatives," said Elon Musk. "But as we transition from a hardware-centric business to a physical AI company, we must focus our engineering talent on the future of autonomy. It is time to bring these programs to an end."
The Legacy of the Flagships
The Model S, launched in 2012, was the first mass-appeal luxury EV and served as the foundation for Tesla’s global dominance. It was followed in 2015 by the Model X, famous for its "Falcon Wing" doors and high-performance SUV capabilities.
Despite their historical significance, sales for both models have plateaued in recent years. In 2025, the Model S and X combined accounted for less than 2% of Tesla's total deliveries, vastly eclipsed by the high-volume Model 3 and Model Y.
What This Means for Customers
Final Orders: Tesla is still accepting orders for the remaining inventory of Model S and Model X. Customers interested in these legacy models are encouraged to place orders before the production window closes in Q2 2026.
Continued Support: Tesla confirmed it will continue to provide service, software updates, and Supercharger access for all existing Model S and X vehicles for the duration of their lifespan.
Product Roadmap: With the departure of the S and X, Tesla’s automotive lineup will focus on the Model 3, Model Y, and Cybertruck, alongside the anticipated 2026 debut of the Cybercab and the next-generation Roadster.
