Tesla Abandons Cars For Robots

For years, electric cars struggled to win over everyday drivers. They often felt underpowered, had limited range, and came with compromises that made petrol cars the easier choice. That changed when Tesla launched the Model S. It was packed with numerous features, proving that an electric car could stand alongside premium luxury sedans. It made people take EVs seriously. Now, the Model S is being phased out.

During Tesla's earnings call, Elon Musk said his company will discontinue the Model S and Model X. Launched in 2012 and 2015, the Model S and Model X helped electric cars reach a wider audience, and the vehicles also played a big role in turning Tesla from a young company into a global auto heavyweight. But the Model S has lost its relevance within Tesla’s lineup. It is expensive compared to newer offerings, and the company now relies largely on sales of the Model 3 and Model Y. In financial reports, the Model S is reportedly listed under “Other Models” rather than as a key product.

Elon Musk-owned carmaker isn’t ending the two models to simply make updated or improved versions. The move reflects a broader shift in Tesla's priorities, as it starts scaling back on traditional car production to put more resources into developing robotaxis and humanoid robots. Elon Musk said that production of the Model S and X will wrap up in the second quarter of this year, and the California factory where they were built will be repurposed to make Tesla’s upcoming Optimus robot.

Musk revealed the shift as Tesla announced its results for the final quarter of last year. While the company exceeded profit forecasts, its total revenue for 2025 was down 3% from the previous year. Overall car sales have dipped, influenced by Musk’s political controversies and increased competition from Chinese and international automakers giving buyers more alternatives. At the same time, despite Tesla’s slipping car sales, investors recently offered Musk a $1 trillion pay package. He has made it clear that his goal is to turn Tesla into an AI-focused company, with robotaxis that can drive you to work and robots that handle everyday tasks. Tesla managed to make electric cars something people actually wanted. Getting the same excitement for humanoid robots or fully driverless cars, however, could be a much tougher task for the company.