Tesla Ends Model S and Model X Production

The Tesla Model S and Model X will cease production in the second quarter of 2026, CEO Elon Musk has confirmed during the company’s latest earnings call.

The Model S sedan was Tesla’s first mainstream product, debuting in 2012 and reaching Australia in 2014, while the Model X large SUV – with its radical ‘Falcon’ gullwing rear doors – appeared globally in 2015.

Both established Tesla as a major automotive player and proved the viability of pure-electric cars, but their Fremont, California production facility is now being converted to produce Tesla’s Optimus robots.  

“If you’re interested in buying a Model S and X, now is the time to order it, because we expect to wind down S and X production next quarter, and basically stop production,” said Musk on the call.  

“We will obviously continue to support the Model S and X programs for as long as people have the vehicles, but we’re going to take the Model S and X production space in our Fremont factory, and convert that into an Optimus factory with a long-term goal of having a million units a year of Optimus robots in the current S and X space.”

Expanding the robotics side of the is one of the key criteria Musk must meet in order to qualify for his US$1 trillion remuneration package, which requires Tesla’s market capitalisation to hit US$8.5 trillion by 2035.

Losing Model S and Model X volume will have little impact on Tesla’s automotive business. Sales figures for the S and X are lumped together under ‘Other’ along with the Cybertruck and accounted for just 50,850 of the 1,636,129 Teslas sold in 2025.

This was an 8.5 per cent fall compared to 2024, leading to a three per cent drop in revenue to US$94.8 billion.

Right-hand production of the Tesla Model S and Model X ended in 2021 when both vehicles were facelifted. While the Australian website did list the updated models, they were never officially sold.