Tesla just pulled the plug on the cars that built its empire. CEO Elon Musk announced Wednesday during the company's earnings call that the Model S sedan and Model X SUV will stop rolling off assembly lines in Q2 2026, marking the end of the vehicles that made electric cars desirable and proved Tesla could compete with legacy automakers. The Fremont factory space will pivot to building Optimus humanoid robots as Tesla doubles down on its autonomy bet.
Tesla is saying goodbye to the vehicles that started it all. In a stunning announcement during Wednesday's quarterly earnings call, CEO Elon Musk revealed that production of the Model S sedan and Model X SUV will cease next quarter, ending more than a decade of manufacturing the pioneering electric vehicles that transformed the auto industry.
"It's time to basically bring the Model S and X programs to an end with an honorable discharge, because we're really moving into a future that is based on autonomy," Musk told investors, according to TechCrunch's coverage of the call. "So if you're interested in buying a Model S and X, now would be the time to order it."
The move marks a dramatic strategic shift for Tesla, which launched the Model S in 2012 as the first premium electric sedan that made EVs widely desirable beyond early adopters and environmental enthusiasts. The Model X followed as Tesla's second major vehicle program, bringing falcon-wing doors and SUV practicality to the electric revolution.
But the writing's been on the wall. Sales of both flagship models have stagnated in recent years despite multiple interior and exterior refreshes aimed at keeping them competitive. The luxury EV market has gotten crowded fast, with traditional automakers finally taking electrification seriously and well-funded startups like Rivian and Lucid Motors targeting the premium segment with fresh designs and compelling tech.
