Tesla plans to stop making popular models

At Tesla’s fourth-quarter earnings call on Wednesday, Elon Musk said the company would stop producing the Model S and Model X. The move will allow Tesla to use its Fremont factory to manufacture up to 1 million Optimus robots per year, CNBC reported.

«It’s time to basically bring the Model S and X programs to an end with an honorable discharge. If you’re interested in buying a Model S and X, now would be the time to order it,» Musk said.

The Model S and Model X are Tesla’s oldest vehicles after the original Roadster. In recent years, Tesla has cut prices for both models as competition in the electric vehicle market has intensified. The Model S sedan was introduced in 2012, followed by the Model X SUV in 2015. Currently, the Model S starts at about $95,000, while the Model X starts at around $100,000 on Tesla’s website.

The Model 3 and Model Y are significantly more popular, accounting for 97% of Tesla’s 1.59 million vehicle deliveries last year. The Model 3 now starts at approximately $37,000, while the Model Y costs around $40,000. Tesla also introduced more affordable versions of both models late last year.

Despite reporting its first annual revenue decline, Musk appears to be shifting focus toward future technologies such as self-driving vehicles and humanoid robots.

Tesla is already developing humanoid robots under the Optimus brand. The company recently announced plans to unveil the third-generation Optimus this quarter, aiming to create a robot capable of performing factory work and assisting with household tasks.

Meanwhile, Chinese robotics companies have demonstrated advanced humanoid robots, drawing attention with machines capable of human-like movement and even dancing.

Another sign that Musk is seeking to reshape his business empire came from a recent statement by SpaceX, which said it is prepared to pursue a merger with either Tesla Inc. or the artificial intelligence firm xAI.