Tesla Sunsetting Model S and X Next Quarter to Refocus on Optimus Robot

Core Insights - Tesla is ending production of the Model S and Model X, marking the retirement of its two longest-running electric vehicles as part of a strategic shift towards an autonomous future [1][3] Production and Sales - The Model S was introduced in 2012 and the Model X in 2015, both contributing significantly to Tesla's establishment in the premium EV market [2] - In 2025, the Model 3 and Model Y accounted for approximately 97% of Tesla's total vehicle deliveries, which reached 1.6 million units [2][4] - The total production for 2025 was 1,654,667 vehicles, with 1,600,767 being Model 3/Y and 53,900 classified as "Other Models" [4] Strategic Shift - The decision to cease production of the Model S and Model X aligns with Tesla's broader strategy to cut costs and focus on more profitable models, as these older models are among the slowest sellers [3] - Tesla is transitioning from a traditional hardware-focused automaker to a "physical AI" company, with plans to scale up production in robotics, energy storage, and battery manufacturing [6] Future Focus - The Fremont factory, currently producing the Model S and Model X, will be repurposed for the production of Tesla's Optimus humanoid robot, with plans to ramp up production to 1 million units per year [7][8]