Tesla will discontinue its Model S and X to reallocate factory capacity for its Optimus humanoid robot and upcoming Cybercab robotaxi production.
SAN JOSE: Tesla is set to discontinue production of its Model S and Model X electric vehicles to free up factory capacity for new projects.
CEO Elon Musk said the phase-out will occur in the coming quarter during a conference call with analysts.
Owners of the vehicles will continue to receive technical support over the lifetime of their cars.
The Model S, launched in 2012, was Tesla’s first fully in-house vehicle and helped establish its reputation.
The Model X, known for its falcon-wing doors, followed in 2015, with both models receiving several refreshes over the years.
Newer models like the Model 3 and Model Y now dominate Tesla’s business, accounting for nearly 97% of deliveries last year.
Tesla plans to use the freed production lines to manufacture its Optimus humanoid robots.
Musk has previously stated he aims to begin selling these robots by the end of next year.
The company also intends to start producing its fully autonomous Cybercab robotaxi this year.
These vehicles will not have a steering wheel or pedals, according to Tesla’s plans.
Musk said Tesla expects to build far more of these robotaxis than any of its other models in the future.
He added that the Cybertruck is also expected to be developed into a fully autonomous vehicle.
