Tesla is putting the brakes on production of the Model S and Model X. The automaker plans to end production of the large, electric sedan and SUV next quarter, effectively retiring its two longest-running electric vehicles. The news was shared by CEO Elon Musk during the company’s earnings call with investors and analysts earlier this week.
After launching the original Roadster, Tesla introduced the Model S in 2012, followed by the Model X SUV in 2015. Both vehicles helped establish Tesla as the brand to beat in the premium EV market. However, over time the company’s focus shifted toward the more affordable Model 3 and Model Y, which now dominate Tesla’s lineup. Together, the two smaller vehicles accounted for roughly 97% of Tesla’s 1.6 million vehicle deliveries in 2025.
“We expect to wind down S and X production next quarter and basically stop production,” Musk said during the call. “That is slightly sad, but it’s time to bring the S and X programs to an end, and it’s part of our overall shift to an autonomous future.”
The decision is not entirely surprising. The Model S and Model X are Tesla’s oldest models and also among its slowest sellers. (Tesla’s own financial reports don’t specify how many were sold last quarter, lumping them into an ever-shrinking “Other Models” line item shared with the Cybertruck and Semi.) Most automakers would have refreshed, replaced or canceled vehicles of this age multiple times by now. Tesla’s software-focused approach has helped keep both models technologically relevant, but with the company reporting declining revenue and sales this year, trimming the lineup and focusing resources elsewhere appears to be part of a broader cost-cutting and strategic shift.
Tesla 2025 Production and Deliveries
| Production | Deliveries | |
| Model 3/Y | 1,600,767 | 1,585,279 |
| Other Models | 53,900 | 50,850 |
| Total | 1,654,667 | 1,636,129 |
In its latest shareholder update, Tesla emphasized that it is continuing its transition away from being a traditional hardware-focused automaker toward what it calls a “physical AI” company. The company outlined plans to scale up new production lines across vehicles, robotics, energy storage and battery manufacturing, signaling where its priorities are headed.
With the large sedan and SUV exiting the lineup, Tesla is increasingly framing its future around driverless technology and robotics. Musk says the Fremont, California, factory, where the Model S and Model X are currently built, will be repurposed to produce the company’s planned Optimus humanoid robot.
Musk claims that Tesla will ramp up Optimus production to 1 million units per year, but considering those robots are not yet available for sale and Tesla/Musk’s history of overly optimistic tech predictions, I won’t hold my breath.
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