Tesla Model X, Model S Axed as Musk Swaps Iconic Electric Cars for an Optimus Robot Future

The era of the pioneering electric SUV is drawing to a close as Tesla confirms it will discontinue the Model S and Model X. While this move allows the firm to focus on futuristic robotics and autonomous tech, it leaves the car's current community in a difficult position. Now, both potential buyers and long-time owners are left to navigate a market without one of its most distinctive flagship vehicles.

Tesla's chief, Elon Musk, announced on Wednesday that the manufacturer is stopping production of the Model S and X to repurpose its Fremont site in California for the assembly of Optimus humanoid robots.

A Shift from Luxury Cars to Robotics

'It is time to basically bring the Model S and X programs to an end with an honourable discharge,' Musk remarked during the firm's fourth-quarter earnings call. He advised that anyone wanting to purchase either car should place their order immediately.

During the company's fourth-quarter earnings call, Musk suggested that the Model S and X projects deserve an 'honourable discharge' as they reach their conclusion. He noted that those wishing to own either vehicle should act quickly to secure their orders.

The End of an Era for Tesla's Veterans

These models are the oldest in the range, dating back to the first Roadster, though Tesla has recently cut costs to navigate a surge in international electric-car competition. The Model S saloon entered production in 2012, with the Model X SUV following three years later.

Currently, the Model S and Model X are listed on Tesla's site with starting prices of roughly $95,000 (£68630.96) and $100,000 (£72243.11), respectively. However, the brand's primary volume comes from the Model 3 and Model Y; these two vehicles accounted for 97% of the firm's 1.59 million deliveries last year.

With the Model 3 now available from about $37,000 (£26729.95) and the Model Y at approximately $40,000 (£28897.25), Tesla bolstered its line-up by introducing even more budget-friendly variants late last year, CNBC reported.

During Wednesday's earnings report, Tesla confirmed its first quarterly decline in annual revenue, driven by sales declines across three of the last four quarters. In response, Musk has attempted to pivot the narrative away from the core electric vehicle business.

He is instead steering the brand towards a future built on autonomous transport and humanoid robotics—sectors that, at present, contribute almost nothing to the company's bottom line.

The Rise of Optimus

The ultimate goal for Optimus is to create a bipedal robot capable of assisting with both complex manufacturing and personal errands, such as babysitting. In its recent release, the manufacturer confirmed that the third-generation model—its 'first design meant for mass production'—will be unveiled before the end of this quarter. This version is expected to bridge the gap between experimental prototypes and a product ready for large-scale use.

During the call, Musk explained that Tesla is overhauling its Fremont production space, replacing the Model S and X lines with a new setup capable of producing one million Optimus units annually.

He noted that because the robot relies on a 'completely new supply chain', it shares virtually no parts with the company's current automotive inventory. Musk further suggested that this transition would actually require a larger workforce at the California plant to help meet a 'significantly increased output.'