Tesla CEO Elon Musk announced that the company is discontinuing production of its Model S and X vehicles. The company’s Fremont, California factory will now be repurposed to manufacture Optimus humanoid robots.
On Tesla’s fourth-quarter earnings call Musk said, “It’s time to basically bring the Model S and X programs to an end with an honorable discharge. If you’re interested in buying a Model S and X, now would be the time to order it.”
Tesla’s more popular models, the 3 and Y, which made up 97% of the company’s 1.59 million deliveries last year, will remain in production.
The company also revealed it will invest $2 billion in Musk’s artificial intelligence firm, xAI, and confirmed that the production of its Cybercab robotaxi remains scheduled for this year.
In its earnings report, Tesla announced its first-ever annual revenue decline, with sales decreasing in three of the last four quarters. Revenue dropped approximately 3%, totaling around $94.83 billion in 2025.
By CEO NA Editorial Staff
