Tesla will “fundamentally cease production” of its Model S and “It’s time to end the Model S and You can buy the vehicles as long as there are units to be sold, and Tesla promises to support them as long as people have them. However, once they’re gone, they’re gone forever, as Tesla is converting its production space at the company’s Fremont factory into space to build the Optimus humanoid robot.
The Model S is Tesla’s second vehicle and has been in production since 2012, while the Model However, their luster has faded over the years, and the new Model 3 and Y now account for the bulk of the company’s sales. For example, throughout 2025, Tesla delivered 1,585,279 Model 3 and Y vehicles, but only sold 418,227 Model S and X units. The company is expected to launch the Model S and
In the call, Musk said Tesla’s long-term goal is to be able to build 1 million Optimus robots in the existing Model S and X production line. A few days ago at the World Economic Forum in Davos, Switzerland, the CEO announced that Tesla will start selling the Optimus to the public by the end of next year. Musk has big plans for Optimus and once said it was bound to become “the biggest product ever”, bigger than a cellphone, “bigger than anything else”. But the humanoid robot has failed to live up to the hype during demonstrations, and Musk is known for his overly optimistic timelines.
The company’s earnings report also revealed that Tesla has invested $2 billion in Musk’s other company xAI. Tesla shareholders specifically sued Musk for launching xAI in 2024, which they argued is direct competition to the automaker. After all, the CEO has been claiming for years that Tesla is an AI company, not just an EV-maker. Nevertheless, Tesla shareholders approved Musk’s $1 trillion pay package at the end of 2025 on the condition that the company’s market value reaches $8.5 trillion.
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