Tesla Halts Model S and X Production, Optimus Robots to Take Their Place

Historic Shift in Tesla's Production Strategy

Tesla has decided to discontinue production of the Model S and Model X, vehicles that left an indelible mark on the electric vehicle sector. Announcing the decision during the 2025 fiscal year results, CEO Elon Musk stated that the production lines for these two flagship models will be gradually phased out, and the facility space will be entirely dedicated to the Optimus humanoid robot project. This move is being interpreted as one of the most concrete signs of a transition from automotive to robotics and AI-focused manufacturing.

Symbols of an Era: Model S and X

The Model S and Model X were the models that Tesla positioned in the luxury segment before entering the mass market, demonstrating to the world what electric vehicle technology could achieve. Particularly, the Model S set a new industry standard with its long range, staggering performance, and revolutionary large touchscreen. The Model X drew attention with its iconic 'falcon-wing doors' and family-oriented luxury SUV concept. However, the fact that Model 3 and Model Y constitute the vast majority of the company's production and sales volume had raised questions about the future of these relatively low-volume models.

The Optimus Project: The New Focus

According to Elon Musk's announcement, the facilities and production processes where the Model S and X are manufactured will be transformed for the production of Tesla's Optimus humanoid robots, which the company has placed at the center of its future vision. The Optimus project aims to develop a general-purpose robot capable of performing repetitive and physical tasks instead of humans. Musk predicts that these robots could constitute the majority of the company's value in the long term and could be used in a wide range of applications, from industrial manufacturing to household chores.

This transition represents the most critical step in Tesla's strategy to position itself not just as an automobile company, but as an artificial intelligence and robotics company. The automation and robotics expertise from the current vehicle production lines will be directly transferred to the mass production of Optimus. This strategic pivot underscores Tesla's broader ambition to lead in advanced automation and intelligent systems beyond the automotive realm.