Tesla announced on its fourth‑quarter earnings call that production of the Model S sedan and Model X SUV will cease, with the Fremont, California plant slated to switch to building the Optimus humanoid robot. CEO Elon Musk framed the move as an “honorable discharge” for the two flagship models.

Introduced in 2012 and 2015 respectively, the Model S and Model X have become Tesla’s most expensive offerings, now listed near $95,000 and $100,000. Slashed pricing failed to stem competition, and the cheaper Model 3 and Model Y accounted for 97 % of the 1.59 million deliveries that year, as Tesla posted its first annual revenue dip.

Musk said the new line will target one million Optimus units annually, demanding an entirely fresh supply chain and a boost in Fremont staffing. Analysts will watch whether the robot can move beyond prototype status and generate revenue, while investors gauge how the shift reshapes Tesla’s long‑term product roadmap.