Tesla believes artificial intelligence and robotics are the future of tech, and so it’s going to stop producing some of its legacy car models in order to make room. The specific models on the chopping block are the Model S luxury sedan and Model X crossover SUV. Both are priced around $100,000 and have been in production for more than a decade, but their sale numbers have slumped in recent years. In 2025, their sales were less than one-third of the more recent Model 3 and Model Y.
So it may be sad but not surprising that Tesla has decided to give the S and X an “honorable discharge,” as CEO Elon Musk put it. Tesla will continue to support the models that have already been made as long as they are on the road. The Fremont, Calif., factory that produced those models will be converting the space into a dedicated factory for the company’s Optimus humanoid robot instead.
