It’s hard to imagine Tesla without the cars that started it all. The Model S was the car that proved EVs could be sexy, fast, and high-tech.

The Model X followed with those iconic "Falcon Wing" doors that looked like something straight out of a sci-fi movie.

But as of this week, the era of the luxury Tesla sedan and SUV is officially coming to a close. During the Q4 2025 earnings call, Elon Musk confirmed that production for both the Model S and Model X will wind down in the second quarter of 2026.

Why the Flagships are Fading

The truth is in the numbers. While these cars were once the face of the company, they have recently become a tiny slice of the pie. In 2025, the Model S and X combined made up less than 3% of Tesla's total deliveries.

Demand has hit a wall as newer, more affordable models take over. Last year, Model S deliveries dropped by over 50%, and the Model X wasn't far behind with a 34% decline. With profit margins shrinking and competition from other luxury brands heating up, Tesla decided it was time to move on.

From Luxury Cars to Humanoid Robots

The most shocking part of this news isn't just that the cars are going away—it’s what is moving in to take their place.

Tesla plans to completely retool the Fremont, California factory. The assembly lines that currently build the S and X are being ripped out to make room for the Optimus humanoid robot.

  • The Vision: Musk wants to build one million Optimus units every single year.
  • The Math: By switching from low-volume luxury cars to mass-market robots, Tesla can produce 20 times more units in the exact same factory space.
  • The Cost: Tesla is aiming for a "robot for everyone," with a target price tag between $20,000 and $30,000.

What This Means for You

If you’ve been dreaming of owning a brand-new Model S or X, your window is closing fast. Musk mentioned that now is the time to place those final orders before the lines go dark for good.

For current owners, don’t panic—Tesla has promised to keep providing service, parts, and software updates for years to come.

Tesla is no longer just a car company. By killing off its oldest models, it's making a massive bet that the future isn't about driving—it's about AI and robotics.