Elon Musk Announces Permanent End to Tesla Model S and Model X Production
Constellation Research founder R ‘Ray’ Wang joins ‘Varney & Co.’ to discuss the new U.S.-controlled TikTok entity and why he believes Elon Musk’s humanoid robots and robo-taxis will fuel Tesla growth.
Elon Musk confirmed on Wednesday that Tesla will cease production of its Model S and Model X premium sedans and SUVs, signaling the end of an era for these long-standing models.
This strategic shift comes as Tesla pivots towards autonomous technology and robotics, with its latest earnings report revealing a 3% decline in revenue, totaling $24.9 billion last quarter.
During Tesla’s fourth-quarter 2025 earnings call, Musk announced that production of the Model S and Model X will gradually wind down next quarter, with manufacturing expected to halt entirely by 2026. The factory space at Tesla’s Fremont, California facility will be repurposed to support new initiatives, including the production of the company’s Optimus humanoid robots.
PENTAGON TAPS MUSK’S XAI TO BOOST SENSITIVE GOVERNMENT WORKFLOWS, SUPPORT MILITARY OPERATIONS
A Tesla Model X alongside a Model S at an EV dealership in Sydney, Australia. (Reuters/Jason Reed, File / Reuters Photos)
“It’s time to basically bring the Model S and X programs to an end with an honorable discharge,” Musk stated during the call. He encouraged potential buyers, saying, “If you’re interested in buying a Model S and X, now would be the time to order it.”
Once the flagship vehicles of Tesla, the Model S and Model X played a crucial role in establishing the company as a leader in the electric vehicle market.
ELON MUSK SHARES PLAN TO MASS-PRODUCE BRAIN IMPLANTS FOR PARALYSIS, NEUROLOGICAL DISEASE
Elon Musk confirmed Wednesday that Tesla will stop producing its Model S and Model X cars next quarter. (Getty Images / Getty Images)
In response to global competition, Tesla had also reduced prices on both models. The company’s more affordable vehicles, the Model 3 and Model Y, now dominate its lineup, accounting for the majority of Tesla’s vehicle deliveries last year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 430.46 | -0.44 | -0.10% |
Tesla’s quarterly results also indicated that revenue for 2025 reached $94.8 billion, reflecting a 3% decrease compared to the previous year.
THE NEW ROBOT THAT COULD MAKE CHORES A THING OF THE PAST
Tesla Optimus is a general-purpose robotic humanoid. (Sjoerd van der Wal/Getty Images / Getty Images)
Electric vehicle sales saw a 16% decline last quarter compared to the previous year, with Tesla selling 1.64 million vehicles in 2025, indicating a 9% drop.
Tesla plans to unveil the third generation of its Optimus robot this quarter, which is touted as its “first design meant for mass production.”
Musk mentioned that Tesla is replacing the Model S and Model X production line in Fremont with a new line capable of producing up to 1 million Optimus units annually, as reported by CNBC.
“Because it is a completely new supply chain,” Musk explained, “there’s really nothing from the existing supply chain that exists in Optimus.”
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In a statement, Tesla emphasized, “In 2026, we will further invest in the infrastructure needed to support clean energy and transport and autonomous robots, including the ramp of six new production lines across vehicle, robots, energy storage, and battery manufacturing, while further leveraging our existing factory, charging, and service center footprint to support future growth.”
FOX Business has reached out to Tesla for comment.
Constellation Research founder R ‘Ray’ Wang joins ‘Varney & Co.’ to discuss the new U.S.-controlled TikTok entity and why he believes Elon Musk’s humanoid robots and robo-taxis will fuel Tesla growth.
Elon Musk confirmed on Wednesday that Tesla will cease production of its Model S and Model X premium sedans and SUVs, signaling the end of an era for these long-standing models.
This strategic shift comes as Tesla pivots towards autonomous technology and robotics, with its latest earnings report revealing a 3% decline in revenue, totaling $24.9 billion last quarter.
During Tesla’s fourth-quarter 2025 earnings call, Musk announced that production of the Model S and Model X will gradually wind down next quarter, with manufacturing expected to halt entirely by 2026. The factory space at Tesla’s Fremont, California facility will be repurposed to support new initiatives, including the production of the company’s Optimus humanoid robots.
PENTAGON TAPS MUSK’S XAI TO BOOST SENSITIVE GOVERNMENT WORKFLOWS, SUPPORT MILITARY OPERATIONS
A Tesla Model X alongside a Model S at an EV dealership in Sydney, Australia. (Reuters/Jason Reed, File / Reuters Photos)
“It’s time to basically bring the Model S and X programs to an end with an honorable discharge,” Musk stated during the call. He encouraged potential buyers, saying, “If you’re interested in buying a Model S and X, now would be the time to order it.”
Once the flagship vehicles of Tesla, the Model S and Model X played a crucial role in establishing the company as a leader in the electric vehicle market.
ELON MUSK SHARES PLAN TO MASS-PRODUCE BRAIN IMPLANTS FOR PARALYSIS, NEUROLOGICAL DISEASE
Elon Musk confirmed Wednesday that Tesla will stop producing its Model S and Model X cars next quarter. (Getty Images / Getty Images)
In response to global competition, Tesla had also reduced prices on both models. The company’s more affordable vehicles, the Model 3 and Model Y, now dominate its lineup, accounting for the majority of Tesla’s vehicle deliveries last year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 430.46 | -0.44 | -0.10% |
Tesla’s quarterly results also indicated that revenue for 2025 reached $94.8 billion, reflecting a 3% decrease compared to the previous year.
THE NEW ROBOT THAT COULD MAKE CHORES A THING OF THE PAST
Tesla Optimus is a general-purpose robotic humanoid. (Sjoerd van der Wal/Getty Images / Getty Images)
Electric vehicle sales saw a 16% decline last quarter compared to the previous year, with Tesla selling 1.64 million vehicles in 2025, indicating a 9% drop.
Tesla plans to unveil the third generation of its Optimus robot this quarter, which is touted as its “first design meant for mass production.”
Musk mentioned that Tesla is replacing the Model S and Model X production line in Fremont with a new line capable of producing up to 1 million Optimus units annually, as reported by CNBC.
“Because it is a completely new supply chain,” Musk explained, “there’s really nothing from the existing supply chain that exists in Optimus.”
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
In a statement, Tesla emphasized, “In 2026, we will further invest in the infrastructure needed to support clean energy and transport and autonomous robots, including the ramp of six new production lines across vehicle, robots, energy storage, and battery manufacturing, while further leveraging our existing factory, charging, and service center footprint to support future growth.”
FOX Business has reached out to Tesla for comment.
