As Tesla Moves Beyond the Model S and X, the Next Era Begins

Tesla has announced that production of the Model S and Model X will conclude by the end of the second quarter of 2026. CEO Elon Musk revealed the news during the company’s Q4 2025 earnings call, stating that it is a fitting finale to programs that once characterized the brand. These two vehicles, which were once staples of the Tesla lineup, now account for only about 3% of the company’s overall sales. Clearing away space at the Fremont factory will be beneficial because the company’s next top priority is to ramp up manufacturing of Optimus humanoid robots in large numbers.

Sales figures clearly tell the entire story here. In 2025, Model S deliveries fell to 5,889 units, down more than half from the previous year. Model X reached 13,066 units, a drop of 34%. Together, the pair delivered under 19,000 vehicles for the year, far below the volume from the Model 3 or Model Y in any single quarter. The lack of demand, combined with the company’s broader goals, made it difficult to keep these models around. When asked about the decision, Musk stated that it was necessary to focus on achieving a future where vehicles can run without a human driver.

No new replacements will be released with the same name as the Model S or Model X, and there are no plans to revive those badges with new designs or improved platforms. Not even a week ago, the company made some small adjustments to each of these models, raising the price somewhat, but it now appears that is all there will be, with no more revisions. Elon did mention a few new cars on the horizon that will meet various purposes.

The Cybercab is one of them, and it’s a new type of vehicle that is completely driverless, with no steering wheel or gas pedal (production model). It aims to make urban transportation more efficient and convenient in shared mobility and ride-hailing scenarios. Production is scheduled to begin in the first half of 2026.

During the call, Tesla also confirmed that the next-generation Roadster is still in the works, with a reveal set for as early as April 2026. They’re promoting it as a high-performance supercar that is essentially the polar opposite of the canceled Model S and X: it’s all about speed and providing a true driving experience.

The Tesla Semi is also getting some attention, but it’s primarily geared at large commercial fleets rather than individual buyers. As for the cars that are already on the market, there are some modifications underway to cover some of the holes left by the discontinued models. The longer Model Y has additional interior room and may be ideal for those families who were previously contemplating the Model X. As for the Model 3, several performance-focused models will be released, which will serve well as a sporty sedan for people who still desire one.

As a result of all of this, Tesla’s lineup will be significantly reduced for the foreseeable future. The Model 3 and Y remain the most popular consumer vehicles, but the Cybertruck will be available for those seeking a more rugged choice. However, the corporation has made a strategic decision to focus on creating robotics and self-driving technology. Factories that used to manufacture the Model S and X are now freeing room to begin producing Optimus robots on a one-million-per-year scale.
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