Tesla Says Goodbye to Model S and Model X
Tesla has announced a major shift in its strategy by discontinuing its luxury Model S and Model X vehicles. These high-end sedans and SUVs, first introduced in 2012 and 2015 respectively, marked the brand’s entry into luxury EV markets. However, demand for these models has waned over the years, contributing to them making up just 3% of Tesla’s total 2025 deliveries.
As the market tightens with increasing EV competition, Tesla has adjusted its focus. Customers interested in purchasing either the Model S or X are encouraged to act fast before inventory runs out.
The Model S, formerly priced at $95,000, and the Model X, starting at $100,000, are no longer central to Tesla’s profitability. Instead, the more affordable models, the Model 3 and Model Y, account for 97% of Tesla’s EV deliveries, making them the backbone of the brand’s audience.
Ramping Up Production of Optimus Humanoid Robots
As Tesla steps away from its older luxury designs, it is re-imagining the future, beginning with its Fremont factory. CEO Elon Musk has revealed bold plans to overhaul manufacturing facilities to prioritize the production of the Optimus humanoid robot. Tesla envisions this ground-breaking robot performing a variety of tasks from manufacturing to domestic assistance, aiming for a production target of 1 million units annually.
This strategic investment complements Tesla’s dedication to artificial intelligence-driven technologies, which includes the development of next-gen AI5 chips crucial for Optimus’s functionality. Tesla views these humanoid robots as a key to taking its innovation beyond automobiles, paving the way for potential use cases in childcare, eldercare, and industrial automation.
A Shift Beyond Automobiles
With revenue declining for the first time in Tesla’s history, the company sees significant potential in diversifying its portfolio. Elon Musk remains optimistic about growth through revolutionary technologies, even though Optimus and other AI ventures currently generate minimal income for the company.
The third-generation Optimus robot, designed for mass production, is set for a Q1 2026 launch. Complementing this development, Tesla claims it will increase employment opportunities at its Fremont facility, transforming it into an AI and robotics hub. The shift from traditional automotive production will elevate Tesla’s position at the forefront of artificial intelligence, robotics, and smart technology.
For those following Tesla’s innovations, the Optimus initiative is an embodiment of Musk’s ambition to expand beyond the electric vehicle market into a future where Tesla’s robots might not just complement, but replace traditional labor.
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