For more than a decade, the Model S and Model X represented Tesla at its boldest. They were the vehicles that changed how people thought about electric cars, proving EVs could be fast, luxurious, and genuinely fun to own.
Now, Tesla is ready for its next phase.
On a recent earnings call, Tesla confirmed it will end production of the Model S and Model X, likely sometime next quarter. The factory space will be redirected toward building humanoid robots and supporting Tesla’s autonomous vehicle roadmap. CEO Elon Musk framed the decision as a natural evolution of the company’s long-term goals.
“The future value of Tesla is overwhelmingly in autonomy and robots,” Musk said, pointing to AI-driven products as the company’s biggest growth opportunity.
From a practical standpoint, this is a focused move. The Model S and X represent roughly 3 percent of Tesla’s global deliveries, which means their phase-out simplifies production without disrupting the core lineup. Models like the Model 3, Model Y, Cybertruck, and future platforms remain central to Tesla’s vehicle strategy.
What changes is how Tesla allocates attention and factory space.
Tesla is signaling that its factories will increasingly be used to build technology platforms rather than traditional vehicles alone. That includes humanoid robots designed for real-world tasks and a growing focus on autonomous mobility.
At the center of that vision is Tesla’s robotaxi program. Musk has said the upcoming Cybercab, a two-seat autonomous vehicle with no steering wheel or pedals, could eventually be produced in volumes that exceed the rest of Tesla’s lineup combined. While the robotaxi service is still expanding market by market, Tesla plans to grow it into seven additional regions in the first half of the year.
This forward-looking strategy has helped keep investor confidence strong. The promise of autonomy, robotics, and AI pushed Tesla’s stock to record levels late last year, reflecting how much weight the market places on the company’s long-term direction rather than short-term vehicle cycles.
Tesla is also reinforcing that direction through its technology investments. The company disclosed a $2 billion investment in xAI, Musk’s artificial intelligence firm, tying Tesla more closely to advances in large-scale AI and data-driven systems. These systems feed into everything from self-driving improvements to robotic movement and decision-making.
For current owners, especially Model S and X drivers, this transition is largely symbolic. Support, service, and parts availability remain in place. Tesla’s over-the-air software model means many features and improvements continue regardless of whether a vehicle is still in production.
For EV enthusiasts, this moment feels like a milestone. The Model S and X did what they were designed to do. They proved the technology, built loyalty, and helped normalize electric performance and luxury. Tesla is now using that foundation to push into autonomy and robotics with the same long-range mindset.
The result is a company that looks less like a traditional automaker and more like a technology platform that happens to build vehicles.
Source: CNN