:max_bytes(150000):strip_icc()/GettyImages-1183851342-314dd56d66a247b9921cd2e893fb7564.jpg "Tesla Won’t Make Two of Its Car Models Anymore")
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Key Takeaways
- Elon Musk said Tesla would stop making the Model S sedan and Model X SUV later this year, freeing up factory space to make robots.
- The news for now means a smaller lineup of Tesla consumer vehicles—which Musk said was “part of our overall shift to an autonomous future.”
Elon Musk wants investors to think of Tesla as more than a car company—and it looks like he means business.
The Tesla (TSLA) CEO on Wednesday said the company would stop producing two of its EV models—the Model S sedan and the Model X small SUV—by the end of the first half of 2026. The change will for now leave the company’s consumer lineup with the Model 3 sedan, it’s most affordable vehicle at present; the Model Y SUV; and the Cybertruck. (Tesla also alluded to progress on a new high-end Roadster earlier today.)
Why This Matters to Tesla Investors
Elon Musk expects Tesla to ramp up production of its Optimus robots this year. To do that, he needs factory space—and that led him to decide to stop making two Tesla car models, including its well-known Model S sedan. The decision illustrates his determination to transition the company into much more than a carmaker.
The decision, Musk said during a Wednesday conference call, was “slightly sad. But it is time to bring the S [and] X programs to an end. It’s part of our overall shift to an autonomous future.” (The call was associated with Tesla’s latest results; read more Investopedia coverage of today’s Magnificent Seven earnings here.)
Musk is in the process of leading Tesla through a high-stakes—for both him and the company—transition from a carmaker into a business he hopes to position at the forefront of autonomous driving, robotics and artificial intelligence. Its auto deliveries fell year-over-year in 2025, and Musk among other things wants to start producing its Optimus robots at scale this year.
That’s part of the reason he’s ending the S and X programs: Musk on Wednesday said he would take Fremont., Calif., factory space currently used to make them and repurpose it to make the robots instead.
Musk did say the company will support the S and X “for as long as people have the vehicles.” But ending their production has another side effect: The jocular observation that, taken together, one could use the names of four Teslas to spell “S3XY” won’t work for much longer.
In the meantime, you can still buy the Teslas that will soon be American automotive history. The company’s web site shows the S starting at around $95,000 and the X at close to six figures. The Model 3 starts at about $35,000.
“We’re really moving into a future that is based on autonomy,” Musk said. “So if you’re interested in buying a Model S and X, now would be the time to order it.”
