Elon Musk: Tesla will discontinue Model S and X, convert Fremont lines to Optimus

Tesla CEO Elon Musk said on Wednesday during the company’s fourth-quarter earnings call that Tesla will discontinue the Model S and Model X in the next quarter.

“It’s time to basically bring the Model S and X programs to an end with an honorable discharge, because we’re really moving into a future that is based on autonomy,” Musk said, calling the shift “slightly sad” but part of the company’s “overall shift to an autonomous future.” The Model S and X were sold in lower volumes compared to the more popular Model 3 and Y, the company noted.

Musk said Tesla will replace the Model S and Model X production lines in its Fremont factory in California with an Optimus factory, with a long-term goal of producing one million robots a year.

He added that Tesla will continue to support Model S and Model X vehicles “for as long as people have them,” and that for those interested in owning one, “now would be the time to order it.”

Tesla’s stock was up Wednesday after the company beat earnings expectations and announced it would invest $2 billion into xAI, Musk’s AI company. This is a developing story.

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