Tesla kills Models S and X to build humanoid robots instead

The End of an Era: Tesla's Decision to Kill the Model S and X

Yesterday's financial results from Tesla painted a bleak picture for the company's future. Profits were almost halved, and revenues declined year on year for the first time in the company's history. The reasons for this decline are multifaceted, but one thing is clear: Tesla's decision to kill the Model S and X marks a significant shift in the company's focus.

A Brief History of the Model S and X

The Model S was first introduced in 2012, and it was a game-changer. As an electric vehicle (EV) designed from the ground up, it offered a range of 265 miles on a full charge, making it one of the most capable EVs on the market at the time. The Model X, introduced in 2015, was the company's first SUV, featuring the now-iconic "falcon wing" doors.

Over the years, both models received updates and improvements, but they never quite reached the same level of innovation as their initial releases. As competitors like the Porsche Taycan and Lucid Air entered the market, the Model S and X began to stagnate.

The Decline of the Model S and X

In 2023, right-hand drive production of the Model S and X ended for markets including the UK, Australia, New Zealand, and Japan. Since then, production and sales of both models have continued to decline. Even when lumped together with the poorly selling Cybertruck, deliveries fell by more than half in Q4 2025, and by 40 percent for the year.

The Rise of the Optimus Robot

Tesla's focus has shifted to its humanoid robot, Optimus, which the company claims will sell in the billions and add up to $20 trillion to its market capitalization at some point in the future. While the robot's development is still in its early stages, Musk has admitted that it's not doing any useful work at the Tesla factory, and the idea that the company will build 10,000 robots this year seems ambitious.

What Does This Mean for Tesla?

The decision to kill the Model S and X marks a significant shift in Tesla's focus towards its humanoid robot. While the robot's potential is immense, its development is still in its early stages, and it's unclear whether it will be able to meet the company's ambitious goals.

Implications for the EV Market

The decline of the Model S and X may have significant implications for the EV market. As one of the pioneers in the EV space, Tesla's decision to focus on its robot may leave a void in the market for capable and innovative EVs.

Forward-Looking Thoughts

As Tesla continues to shift its focus towards its humanoid robot, it's clear that the company is taking a significant risk. If the robot fails to meet its ambitious goals, it could have significant consequences for the company's future. However, if it succeeds, it could revolutionize the way we think about work and productivity.

In the end, the decision to kill the Model S and X marks a significant shift in Tesla's focus towards its humanoid robot. While the robot's potential is immense, its development is still in its early stages, and it's unclear whether it will be able to meet the company's ambitious goals. Only time will tell if Tesla's decision will pay off.

Technical Details

• The Model S was first introduced in 2012 and had a range of 265 miles on a full charge.
• The Model X was introduced in 2015 and featured the now-iconic "falcon wing" doors.
• The Cybertruck was introduced in 2019 and has been poorly selling.
• The Optimus robot is still in its early stages of development and is not doing any useful work at the Tesla factory.
• The company claims that the robot will sell in the billions and add up to $20 trillion to its market capitalization at some point in the future.

Practical Insights

• The decline of the Model S and X may have significant implications for the EV market.
• Tesla's decision to focus on its humanoid robot may leave a void in the market for capable and innovative EVs.
• The robot's development is still in its early stages, and it's unclear whether it will be able to meet the company's ambitious goals.

Real-World Applications

• The Optimus robot could revolutionize the way we think about work and productivity.
• The robot's potential is immense, and it could have significant consequences for the company's future.
• The decision to kill the Model S and X marks a significant shift in Tesla's focus towards its humanoid robot.

Conclusion

The decision to kill the Model S and X marks a significant shift in Tesla's focus towards its humanoid robot. While the robot's potential is immense, its development is still in its early stages, and it's unclear whether it will be able to meet the company's ambitious goals. Only time will tell if Tesla's decision will pay off.

Source: https://arstechnica.com/cars/2026/01/tesla-kills-models-s-and-x-to-build-humanoid-robots-instead/