Tesla kills the models that put it on the map to make room for robots

The Tesla Model S and Model X, arguably more so than the niche Roadster, cemented the US electric vehicle (EV) maker’s status as a high-tech disruptor brand. They're now being axed.

The large, luxurious liftback and crossover SUV duo, long its most premium vehicles, will exit production this year.

Tesla CEO Elon Musk made the announcement during the company's fourth-quarter 2025 earnings call, with the company also confirming a three per cent drop in total revenues in 2025 to US$94.8 billion (~A$135bn).

The company has also confirmed its global deliveries fell by 8.6 per cent in 2025 to 1,636,129 vehicles.

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“It’s time to bring the Model S and X programs to an end with an honourable discharge,” said Mr Musk.

“We are really moving into a future that is based on autonomy. If you are interested in buying a Model S and X, now would be the time to order it because we expect to wind down S and X production next quarter and basically stop production of Model S and X next quarter.

“We will obviously continue to support the Model S and X programs for as long as people have the vehicles."

The Model S and Model X were already officially axed in right-hand drive markets back in 2023, but have survived in left-hand drive markets like the US, where they're built.

It won't be new vehicles that replace them at their Fremont, California plant.

“We are going to take the Model S and X production space in our Fremont factory and convert that into an Optimus factory with a long-term goal of having a million units a year of Optimus robots in the current S and X space in Fremont,” explained Mr Musk.

“That is slightly sad, but it is time to bring the S and X programs to an end and shift to an autonomous future.

“As my profile picture on X for a few months there, the future is autonomous.”

Mr Musk said he expects to increase the employee headcount at Fremont over time.

Tesla doesn't report Model S or Model X deliveries separately, instead lumping them in with the Cybertruck. Nevertheless, last year it delivered just 50,850 vehicles across those three model lines, against 1,585,279 Model 3 and Model Y vehicles.

That was a drop from 85,133 in the prior year, which was also the first full year of Cybertruck production.

While the Model S and Model X are being discontinued, Tesla will start production of its autonomous Cybercab in April.

"I really think long-term, the only vehicles that we'll make will be autonomous vehicles with the exception of the next generation Roadster which we're hoping to debut in April," said Mr Musk.

The Model S was Tesla's first high-volume model, entering production in 2012. It was followed in 2015 by the Model X, a large three-row crossover SUV with unusual 'falcon-wing doors'.

While both vehicles have been in production for many years, they've received various updates during their runs.

However, an update to both in 2021 – which brought a new interior design and high-performance Plaid flagships – spelled the end of right-hand drive production, even though the revised models were initially confirmed and even priced for our market.

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