Tesla will cease production of its Model S and Model X vehicles by the second quarter of 2026, as confirmed by CEO Elon Musk during an earnings call. The Fremont factory lines dedicated to these models will be repurposed for manufacturing Tesla's Optimus humanoid robot, with a target of producing 1 million units annually. To clear existing inventory, Tesla is offering incentives such as free Full Self-Driving capability and Supercharging for remaining Model S and Model X units. Despite the production halt, Tesla will continue to provide service and software updates for current owners. In 2025, Tesla delivered approximately 6,000 Model S sedans and 13,000 Model X SUVs, a small portion of its total deliveries. This strategic shift underscores Tesla's transition from traditional automaking to a focus on AI and robotics.