Tesla is shutting down two of its most recognizable cars, the Model S and Model X, and redirecting that factory space and capital into humanoid robots and autonomous services. The move marks a decisive break from the company’s origins as a premium electric-car maker and accelerates its attempt to become a robotics and AI platform. It is a high‑stakes bet that the next decade of growth will come less from selling sedans and SUVs and more from software, robotaxis, and machines that walk on two legs.
For owners, investors, and rivals, the decision is a clear signal that the Tesla of the 2010s is giving way to something closer to a technology conglomerate built around artificial intelligence. I see it as a test of whether the company can turn its boldest promises about autonomy and humanoid labor into products that scale as reliably as the Model S once did.
The end of Model S and X, and what Tesla is giving up
Tesla CEO Elon Musk has confirmed that the company will stop producing the Model S sedan and Model X crossover, effectively ending the two vehicles that defined its early move into mass‑market luxury EVs. In a recent update, Musk told investors that Tesla will halt output of both models and reallocate their assembly lines to new projects, a shift that was later detailed as a pivot toward building humanoid robots and expanding autonomous services, according to Musk says. The decision closes the chapter on cars that helped normalize long‑range electric driving and made Tesla a household name among early adopters.
The Model S, introduced in the early 2010s, became a benchmark for EV performance and range, while the Model X, with its distinctive Falcon Wings rear doors, pushed the brand into the family SUV segment. Both vehicles have now been formally described as discontinued, with reporting noting that the Model S and Model X are effectively “dead” in the lineup as Tesla reshapes its product mix around newer vehicles and emerging robotics projects, as detailed in coverage. By walking away from its flagship premium models, Tesla is signaling that it is willing to sacrifice some brand heritage and high‑margin halo products in order to free up capacity for what it sees as its next growth engines.
Freeing Fremont for Optimus humanoid robots
The most immediate beneficiary of this shift is Optimus, the humanoid robot Musk has been promoting as a future pillar of Tesla’s business. The company has told investors that it will discontinue production of the Model S and Model X and retool the same lines to manufacture the Optimus robot, a plan that was laid out in detail in a shareholder discussion about reallocating resources to robotics and AI, according to factory plans. In that context, the end of the two cars is less about retreating from the luxury EV market and more about making physical room for a new category of product.
That retooling centers on Tesla’s original plant in Fremont, California, which has long been the company’s flexible workhorse for new models and engineering experiments. Musk has said that Tesla will establish a dedicated Optimus production line at the Fremont factory with an annual capacity of one million units, a figure that underscores how aggressively the company is thinking about scaling humanoid robots, according to Musk, Elon Musk. If Tesla can approach that volume, it would transform the Fremont site from a car plant into one of the world’s largest humanoid robot factories.
From electric cars to an autonomy and AI company
Musk has been explicit that he sees Tesla’s future less in building more variants of electric cars and more in autonomy, robotics, and AI‑driven services. In remarks to investors, he framed the discontinuation of the Model S and Model X as part of a broader shift in focus toward Optimus and self‑driving technology, describing the company as increasingly centered on autonomy rather than traditional vehicle manufacturing, according to a shift in strategy. That narrative aligns with Tesla’s long‑running effort to position its Full Self‑Driving software as a core differentiator and revenue stream.
The company has also outlined an ambitious capital plan to support this transition, with Musk presenting a roughly 20 billion dollar spending blueprint that emphasizes AI infrastructure, robotics, and autonomous services over new conventional car programs. Analysts have interpreted that plan as evidence that the “Tesla of yesterday” is being replaced by a business more akin to a vertically integrated AI and robotics firm, a view reflected in reporting on Musk’s 20 billion strategy. In my view, the end of the Model S and Model X is the clearest operational proof yet that this reorientation is not just rhetoric.
Robotaxis, new cities, and the autonomous future Tesla is chasing
Alongside Optimus, Tesla is doubling down on robotaxis and autonomous ride‑hailing as a key part of its AI‑first identity. Musk has said he expects Tesla’s robotaxi service to be widespread across the United States by the end of 2026, and he has projected that the company will be selling humanoid robots to the public by the end of 2027, according to comments attributed to Musk, Tesla. Those timelines are aggressive even by Tesla standards, but they help explain why the company is willing to sacrifice legacy models to accelerate development and deployment.
On the ground, Tesla is already expanding its autonomous services footprint into new metropolitan areas. The company has identified Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas as target markets for new offerings, with plans to roll out additional services in the first half of 2026, according to an investor update on Tesla, Inc. The company has also confirmed an aggressive robotaxi expansion plan into additional cities, underscoring that its near‑term growth bets are tied as much to software and fleet operations as to selling individual vehicles, as reflected in its robotaxi expansion roadmap.
What this means for owners, rivals, and the EV market
For current and prospective owners, the end of the Model S and Model X raises practical questions about support, resale values, and the future of premium EVs. Tesla has said that it will continue to service existing vehicles, but the company is clearly steering new buyers toward other models and future autonomous offerings, a shift that has been framed as part of a broader move toward an autonomous future in which traditional ownership plays a smaller role, according to reporting on Tesla plans. Some analysts argue that the discontinuation could make late‑run Model S and Model X vehicles more collectible, while others see it as a sign that Tesla is ceding part of the luxury EV space to rivals.
Competitors now have an opening to court buyers who once saw the Model S and Model X as the default high‑end electric choices. At the same time, Tesla’s move may pressure other automakers to accelerate their own autonomy and robotics programs, especially if Optimus and robotaxis begin to generate meaningful revenue. The company has framed the freed‑up factory space as a way to build robots instead of cars, a trade‑off that one analysis described as taking “one of the most significant new vehicles of the last 15 years” off the market to prioritize humanoid production, according to One of the. How quickly that bet pays off will shape not only Tesla’s trajectory but also how the broader industry allocates capital between EVs and AI‑driven platforms.
