- Tesla CEO Elon Musk has announced he will discontinue the brand’s Model X and Model S cars as the company pivots towards autonomous vehicles.
- On a call with investors, Musk confirmed, “It’s time to bring the S and X programs to an end.”
- The discontinuation will free up space at Tesla’s Fremont factory, which will instead be used to further develop Musk’s Optimus humanoid robots.
Elon Musk has confirmed the Tesla Model S and Model X will reach the end of the line before mid-2026, as the Californian factory is retooled to build the Optimus home-assistant robot. A neat full-circle moment for the duo that dragged EVs into the mainstream, even if Aussie buyers waved goodbye back in early 2023 when right-hand-drive production dried up.
In part, it was the numbers that made the call. In the final quarter of last year, Model 3 and Model Y cars made up 97% of Tesla’s global footprint, turning the S and X variants into halo cars without a business case.
“We expect to wind down S and X production next quarter and basically stop production,” Musk said, while also confirming that Tesla would continue to support both Model X and S owners into the future.
“That is slightly sad, but it’s time to bring the S and X programs to an end, and it’s part of our overall shift to an autonomous future.”
The other part of the equation is Musk’s big bet on autonomous robots, with the billionaire confirming the discontinuation will free up production space in Tesla’s Fremont, which he will transform into an Optimus factory. The Optimus pivot is anything but small, and once the facility is converted, Musk is targeting production of one million units a year, with a third-generation robot said to be the first truly mass-market version.
Meanwhile, over in Texas, the brand’s next act rolls on as the driverless Cybercab heads into production in the first half of 2026, arriving without “human controls”. Australia remains the question mark as far as a destination market for this latest offering from Tesla, with supervised full-self driving remaining in a legislative grey zone where the driver must remain alert and responsible while the car navigates.
So begins a new chapter in the story of Tesla, with the Model 3 and Y carrying the volume, robots on the way, and a driverless cab warming up in the wings.
“If you’re interested in buying a Model S and X, now would be the time to order it.”
