Tesla has announced that it will be discontinuing the production of its Model S and Model X vehicles. This decision was made public by CEO Elon Musk during the company’s fourth-quarter earnings call. Musk stated that it is time to bring the Model S and X programs to an end, with production expected to cease in the next quarter.
Background on Model S and X
The Model S and X have been in production since 2012 and 2016, respectively, with an estimated 730,000 to 740,000 units delivered. The production facilities for these models will be repurposed to produce the Optimus humanoid robot, as the company shifts its focus towards an autonomous future.
Cybertruck to Become Autonomous Fleet Vehicle
The Cybertruck, which has experienced declining sales, will be converted to a fully autonomous line in the future. This will enable the vehicle to be used for transporting cargo autonomously, marking a new direction for the model.
Elon Musk’s Thoughts on the Decision
Musk expressed that it is sad to see the Model S and X being pulled out of production, but noted that they will continue to exist in the fleet. He acknowledged the emotional aspect of discontinuing these models, but emphasized the company’s commitment to its autonomous future.
Tesla’s Q4 Earnings and xAI Investment
Tesla’s Q4 earnings report showed a favorable picture for the company, with an EPS of 50 cents per share and quarterly revenue of $24.9 billion. The company also announced a $2 billion investment in Elon Musk’s artificial intelligence company xAI, which is expected to be finalized in the first quarter of 2026.
Future Developments
Tesla intends to unveil the third generation of the Optimus humanoid Robot in Q1 this year. The company’s focus on autonomous technology and artificial intelligence is expected to drive its growth and innovation in the coming years.
Market Reaction
Tesla’s stock price jumped 2.01% to $440.13 during overnight trading on Wednesday, following the announcement of its Q4 earnings and the investment in xAI. The company’s commitment to its autonomous future and its investments in emerging technologies are expected to continue to drive its growth and success.