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Tesla To Stop Model X And S EVs This Year
Tesla CEO Elon Musk has confirmed that the company will begin phasing out its Model S and Model X electric vehicles this year and will retool its California factory to produce humanoid robots.
This announcement marks the end of an era. The two vehicles, introduced in 2012 and 2015, helped move electric cars from the consumer fringe to the mainstream. They also aided Tesla’s rise from startup to the world’s most valuable automaker.
Musk announced the phasing out of the models in a phone call with investors and Wall Street analysts, saying it was part of his efforts to overhaul Tesla’s business to focus the company on robotaxis and humanoid robots.
“We expect to cut Model S and X production next quarter and essentially stop production. It’s a little sad, but it’s time for the S and X programs to come to an end, and it’s part of our overall transition to an autonomous future,” Musk said, adding that the company will continue to support the vehicles as long as people have them.
He announced the change when Tesla released its financial results for the final three months of last year. The company beat analysts’ earnings expectations but showed signs of weakness as total revenue for last year was down 3 percent from 2024 revenue.
Shares rose about 2 percent in after-hours trading.
Sales of Tesla vehicles have generally fallen in the past year, as buyers reacted to Musk’s involvement in right-wing politics, but also because competitors from China and other countries have given drivers around the world more choices.
Musk said Tesla will convert its factory in Fremont, California, from an automotive facility to a manufacturing facility for its planned line of Optimus robots. Those robots are not on the market yet.
The Model S arrived at a time when electric cars were a small niche in the vehicle market, and many industry analysts doubted whether there was enough demand for an electric-only automaker to survive. But the Model S exceeded expectations and gained a loyal following. The Model X, Tesla’s crossover SUV, arrived a few years later and initially received poor reliability ratings.
Tesla cut prices for both the Model S and Model X in 2023 in an effort to spur more demand.
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