Tesla axes model S and X for optimus robot production: because who needs cars when you can chase a million-unit ai fantasy in the same factory

Tesla CEO Elon Musk announced that the company will discontinue production of its Model S and X electric vehicles next quarter to focus on manufacturing Optimus humanoid robots. The decision marks the end of an era for the Model S, which has been in production since 2012, and the Model X, which has been produced since 2015. Despite their initial success, the vehicles' sales have declined in recent years, with only 418,227 units sold in 2025, compared to 1,585,279 Model 3 and Y vehicles. The production space at Tesla's Fremont factory will be converted to manufacture Optimus robots, with a goal of producing 1 million units. Musk plans to start selling Optimus to the public by the end of next year, and has invested $2 billion in his AI company, xAI. The move is part of Tesla's shift towards autonomy and AI, with Musk claiming the company is an AI company, not just an EV-maker.