Tesla CEO Elon Musk announced Wednesday the company is scrapping the production of its Model S and X vehicles, and instead plans to convert its factory in Fremont, California to produce Optimus humanoid robots, according to CNBC.
Musk said during the automaker’s fourth-quarter earnings call that it is “time to basically bring the Model S and X programs to an end with an honorable discharge,” CNBC reported. He added “if you’re interested in buying a Model S and X, now would be the time to order it,” according to the outlet. (RELATED: Ilhan Omar Calls Elon Musk ‘One Of The Dumbest People On Earth’)
Tesla did not respond to the Daily Caller News Foundation’s request for comment.
Model S & X will live on through me pic.twitter.com/kNXx2eK1U2
— Tesla Optimus (@Tesla_Optimus) January 28, 2026
Tesla’s Model S presently starts at about $95,000 on the company’s website, and the Model X starts at around $100,000, CNBC reported.
Tesla’s annual profit notably dropped to its lowest level in several years in 2025 amid ongoing struggles such as increased competition from other electric vehicle (EV) makers, Deutsche Welle (DW) reported on Wednesday. The automaker reported on Wednesday that its net income in 2025 plummeted 46%, to $3.8 billion, according to the outlet.
A Tesla Optimus robot scoops popcorn and waves at attendees during the opening of the Tesla Diner and Drive-In restaurant and Supercharger on Santa Monica Blvd in the Hollywood neighborhood Los Angeles, California on July 21, 2025. (Photo by Patrick T. Fallon / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images)
Tesla first unveiled plans to build Optimus, a humanoid robot designed to help humans perform repetitive tasks, in August 2021, The Wall Street Journal reported. Musk said during a speech at the World Economic Forum in Davos on Jan. 22 that he projects Tesla will begin offering its Optimus robots for sale to the public by the end of 2027, adding he believes “everyone on earth is going to have one and want one,” Axios reported.
Musk wrote in a Sept. 1, 2025 X post that he estimates “80% of Tesla’s value will be Optimus” in the future. Moreover, Musk previously said the humanoid robots are projected to cost less than $20,000, Fox Business reported in October 2022.
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