Tesla is killing off the Model S and Model X

Tesla CEO Elon Musk announced on January 28, 2026, that the company will cease production of the Model S sedan and Model X SUV, with the final units scheduled for manufacture next quarter. The decision marks a strategic shift as Tesla plans to repurpose the Fremont, California factory space to produce Optimus robots. Musk emphasized that Tesla will continue to support existing Model S and Model X owners indefinitely, describing the end of these vehicle programs as an "honorable discharge" aligned with the company's move toward autonomy-focused products. The Model S, launched in 2012, was pivotal in popularizing electric vehicles, while the Model X followed as Tesla’s second major EV program. However, sales of both models have stagnated in recent years despite updates to their design and features. Musk encouraged potential buyers interested in these models to place orders soon, signaling the end of an era for Tesla’s flagship electric cars as the company pivots toward new technologies and product lines.