Tesla Stops Producing Model S and X, Ending an Era

Tesla has officially ended production of the Model S and Model X at its Fremont, California factory, with custom orders no longer accepted and approximately 600 vehicles remaining in global inventory [doc3, doc7]. CEO Elon Musk announced the decision on the company's Q4 2025 earnings call, stating: 'It's time to basically bring the Model S and X programs to an end with an honorable discharge.' Both models have been in continuous production since 2012, making them the longest-running vehicles in TSLA's lineup and the foundation on which the company built its brand.

The factory lines previously dedicated to Model S and X production will be repurposed to manufacture Optimus humanoid robots, with Musk targeting 1 million Optimus units per year from the Fremont facility. Tesla has pledged to maintain indefinite parts, service, and software support for existing owners — a distinction that sets it apart from traditional automakers that typically wind down support for discontinued models within a fixed number of years .

For TSLA investors, the move is a significant strategic signal: the company is redeploying premium manufacturing capacity toward its highest-conviction long-term bet rather than defending a luxury EV niche under pressure from Porsche Taycan, Mercedes EQS, and Lucid Air. The roughly 600 remaining units represent a limited collector window, but their financial impact is negligible given the models' declining sales volumes in recent quarters. The harder question for the market is whether Optimus robot production can ramp to the scale and economics that justify this factory reallocation — a bet that will take years to validate.