Electric vehicle pioneer Tesla, Inc. has confirmed that it will cease production of its flagship luxury models — the Model S sedan and Model X SUV — by the second quarter of 2026, marking a strategic pivot in the company’s long-term direction. According to the announcement, Tesla plans to repurpose manufacturing capacity at its Fremont, California plant to focus on next-generation robotics and autonomous technology development, including its Optimus humanoid robot program.
Introduced in 2012 and 2015 respectively, the Model S and Model X played defining roles in establishing Tesla’s reputation in the luxury electric vehicle segment, offering high performance, cutting-edge tech, and distinctive design. However, recent sales trends show stronger demand for more accessible models like the Model 3 and Model Y, prompting Tesla to streamline its lineup and concentrate investment on advanced technologies beyond traditional passenger cars.
The move signals a bold transformation for Tesla as it shifts from primarily being an EV maker toward broader ambitions in artificial intelligence and robotics. While this decision ends an era for two of the company’s most iconic luxury vehicles, it also challenges competitors in the premium EV market — including BMW, Mercedes, and Audi — to capitalize on the gap left by Tesla’s exit from these key segments.