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Constellation Research Founder R ‘Ray’ Wang Joins ‘Varney & Co.’ to talk about the new US-controlled TikTok entity and why he thinks Elon Musk’s humanoid robots and robot taxis will fuel Tesla’s growth.
Elon Musk confirmed Wednesday that Tesla will stop production of its Model S and Model X premium sedans and SUVs, marking the end of an era for its longest-running models, according to reports.
The move comes as the company pivots to autonomous technology and robotics and its earnings report showed last quarter revenue fell 3% to $24.9 billion.
talking from Tesla In the 2025 fourth quarter earnings call on Wednesday, Musk said production of the Model S and Model X will be reduced next quarter.
Manufacturing is expected to stop in 2026, while Tesla’s Fremont, California factory space will be repurposed to support new initiatives, including production of the company’s Optimus. humanoid robots.
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A Tesla Model X next to a Model S at an electric vehicle dealership in Sydney, Australia. (Reuters/Jason Reed, File/Reuters Photos)
“It’s time to basically end the Model S and X programs with an honorable discharge,” Musk said on the call.
“If you’re interested in buying a Model S and X, now would be the time to order.”
The Model S and Model X were once Tesla’s flagship vehicles, helping to establish the company as a leader in the electric vehicle market.
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Elon Musk confirmed Wednesday that Tesla will stop production of its Model S and Model X cars next quarter. (Getty Images/Getty Images)
Tesla had also reduced the prices of both models amid global competition in the sector.
The company’s most affordable and highest-volume vehicles, the Model 3 and Model Y, now dominate its lineup, accounting for the majority of Tesla’s vehicle deliveries last year.
| Ticker | security | last | change | % change |
|---|---|---|---|---|
| TSLA | TESLA INC. | 430.46 | -0.44 |
-0.10% |
Tesla’s quarterly results also showed revenue for 2025 totaling $94.8 billion, down 3% from a year ago.
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Tesla Optimus is a general purpose robotic humanoid. (Sjoerd van der Wal/Getty Images/Getty Images)
Electric vehicle sales fell 16% last quarter compared to a year ago, while Tesla sold 1.64 million vehicles in 2025, signaling a 9% decline.
Tesla said it plans to unveil the third generation of its Optimus robot this quarter, calling it its “first design intended for mass production.”
Musk said on the call that Tesla is replacing the Model S and Model X production line in Fremont with a line capable of producing up to 1 million Optimus units per year. CNBC informed
“Because it’s a completely new supply chain,” Musk said, “there’s actually nothing from the existing supply chain that exists in Optimus.”
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In a statement, Telsa said: “By 2026, we will further invest in the infrastructure needed to support clean energy and autonomous transportation and robots, including ramping up six new production lines between vehicles, robots, energy storage and battery manufacturing, while further leveraging our existing factory, cargo and service center footprint to support future growth.”
FOX Business has reached out to Tesla for comment.
