Tesla CEO Elon Musk announced the company is phasing out its flagship Model S and Model X vehicles. Only a few hundred units remain in current inventory. Custom orders for these models were halted in early April, and production of new units has now officially ceased.
The move ends a 14-year production run that established the luxury electric vehicle market. Tesla is shifting resources away from these lower-volume, high-end models to prioritize mass production. The company will repurpose the Fremont plant production space for the Optimus humanoid robot.
This transition signals a strategic pivot toward artificial intelligence and autonomous technology. Tesla is increasing its focus on robotics and ventures beyond traditional passenger cars.