Tesla is killing off its Mannequin S and X vehicles to make robots

Tesla will “principally cease the manufacturing” of its Mannequin S and X electrical autos subsequent quarter, CEO Elon Musk has announced on the automaker’s earnings name for the 2025 fiscal yr. “IT’s time to deliver the Mannequin S and X program to a finish with an honorable discharge, as a result of we’re actually transferring right into a future that’s primarily based on autonomy,” Musk mentioned. You may nonetheless purchase the autos so long as there are models to be bought, and Tesla guarantees to assist them for so long as folks have them. As soon as they’re gone, although, they’re gone for good, as a result of Tesla is changing their manufacturing house within the firm’s Fremont manufacturing unit into an area for the manufacturing of Optimus humanoid robots.

Mannequin S is Tesla’s second automobile and has been in manufacturing since 2012, whereas the Mannequin X SUV has been in manufacturing since 2015. Their shine has pale over time, nevertheless, and the newer Mannequin 3 and Y now make up the majority of the corporate’s gross sales. For the entirety of 2025, as an illustration, Tesla delivered 1,585,279 Mannequin 3 and Y autos however solely bought 418,227 Mannequin S and X models. The corporate additionally needed to cease promoting Mannequin S and X in China in mid-2025, as a result of they have been being imported from the US and have been topic to China’s tariffs that have been put in place in response to US President Donald Trump’s tariffs on imported items.

Within the name, Musk mentioned that Tesla’s long-term aim is to have the ability to manufacture 1 million Optimus robots within the present Mannequin S and X manufacturing house. On the World Financial Discussion board in Davos, Switzerland just a few days in the past, the CEO introduced that Tesla will begin promoting Optimus to the general public by the top of subsequent yr. Musk has massive plans for Optimus and as soon as mentioned that IT’s certain to change into the “greatest product of all time,” greater than cellphones, “greater than something.” However the humanoid robotic has been failing to reside as much as the hype throughout demonstrations, and Musk is understood for his overly optimistic timelines.

The corporate’s earnings report has additionally revealed that Tesla invested $2 billion in Musk’s different firm, xAI. Tesla’s shareholders notably sued Musk in 2024 for beginning xAI, which they argued is a direct competitors to the automaker. The CEO has been claiming for years, in spite of everything, that Tesla is an AI firm and never simply an EV-maker. Nonetheless, Tesla’s shareholders authorized Musk’s $1 trillion pay package deal in late 2025 on the situation that the corporate reaches a market worth of $8.5 trillion.