Tesla will discontinue production of its Model S sedan and Model X SUV, as announced by CEO Elon Musk during the company's fourth-quarter earnings call. The phase-out of these models will begin in the upcoming quarter, with manufacturing expected to cease in 2026. The production facilities at Tesla's Fremont factory in California will be repurposed for the manufacture of Optimus humanoid robots, which Musk described as a significant shift towards a focus on robotics and artificial intelligence.

The decision to end production comes amid declining sales for the Model S and Model X, which have seen reduced demand compared to Tesla's more popular models, such as the Model 3 and Model Y. In 2025, deliveries of these two models accounted for just over 50,000 units compared to approximately 1.6 million deliveries for the Model 3 and Model Y combined. Despite exceeding earnings expectations with a report showing earnings per share of $0.50 against an anticipated $0.45 and revenue of $24.9 billion compared to expected figures of $24.79 billion, Tesla reported an overall decline in automotive revenues year-over-year.

Musk indicated that while it is "slightly sad" to conclude these programs, it aligns with Tesla's vision for an autonomous future focused on AI-driven projects like Optimus consumer robots and robotaxis. Production lines at the Fremont facility are expected to produce one million units annually once repurposed for Optimus manufacturing.

Tesla has committed approximately $2 billion into xAI, Musk's artificial intelligence venture aimed at enhancing collaboration between Tesla and xAI technologies within physical products and services.

While existing owners of the Model S and Model X will continue receiving support after production ceases, this transition marks a significant evolution for Tesla as it shifts from traditional automotive manufacturing towards becoming a leader in robotics and AI technologies amidst increasing competition from other electric vehicle manufacturers like BYD offering more affordable alternatives.

Original Sources: 1, 2, 3, 4, 5, 6, 7, 8 (tesla) (california) (optimus) (robotaxis)

The article discusses Tesla's decision to discontinue the Model S and Model X electric vehicles in favor of humanoid robot production. Here’s a breakdown of its value:

Actionable Information: The article does not provide clear steps, choices, or instructions that a reader can use. It primarily reports on corporate decisions without offering any guidance for individuals affected by these changes, such as current Tesla owners or potential buyers.

Educational Depth: While the article touches on the historical significance of the Model S and Model X in popularizing electric vehicles, it lacks deeper analysis or context about why Tesla is shifting its focus. There are no statistics or detailed explanations that would help readers understand the implications of this transition beyond surface-level facts.

Personal Relevance: The information may have limited relevance for most readers. While it affects current owners of the discontinued models, those who do not own a Tesla might find little personal impact from this news. The mention of support for existing owners is vague and does not provide actionable insights.

Public Service Function: The article does not serve a public service function effectively. It recounts corporate changes without providing warnings or guidance that could help consumers make informed decisions regarding their vehicle ownership or future purchases.

Practical Advice: There are no practical steps or tips provided for readers to follow regarding their own situations with Tesla vehicles. This lack of guidance means that ordinary readers cannot realistically take any action based on the information presented.

Long-Term Impact: The article focuses on a specific event—the discontinuation of certain vehicle models—and offers no lasting benefits or insights for planning ahead in terms of vehicle choice or investment in electric vehicles.

Emotional and Psychological Impact: The tone is somewhat neutral but may evoke feelings of sadness among loyal customers who appreciated these models. However, it does not provide constructive ways to cope with this change, leaving some emotional responses unaddressed.

Clickbait Language: The language used is straightforward and factual without sensationalism; however, it lacks depth that would engage readers meaningfully beyond mere reporting.

Missed Opportunities to Teach: The article mentions challenges faced by Tesla but fails to explore them further—such as how competition impacts consumer choices—which could have been informative for readers looking to understand market dynamics better.

To add real value that the article failed to provide: If you are considering purchasing an electric vehicle (EV), research various brands and models available in your area rather than focusing solely on one manufacturer like Tesla. Compare features such as range, charging infrastructure, price points, and customer reviews from multiple sources before making a decision. If you currently own a Model S or Model X, stay informed about warranty options and support services offered by Tesla post-production cessation so you can make educated decisions about maintenance and future upgrades. Additionally, consider joining online forums where other EV enthusiasts discuss their experiences; this can offer community support during transitions like these while also providing insights into alternative options available in the market today.

The text uses the phrase "slightly sad" to describe Elon Musk's feelings about ending the Model S and Model X programs. This choice of words softens the emotional impact of the decision, making it seem less significant. By using "slightly," it minimizes any potential negative feelings or backlash from fans and customers. This wording could lead readers to feel that the transition is not as serious or impactful as it actually is.

The statement that Tesla will "continue even after production ceases" to support existing owners of the Model S and Model X suggests a commitment to customer care. However, this can be seen as virtue signaling because it emphasizes positive intentions without providing specific details on how support will be maintained. The lack of concrete information might mislead readers into believing that existing owners will receive substantial help when, in reality, this may not be guaranteed.

When mentioning Tesla's challenges due to "increased competition and customer reactions to Musk's political involvement," there is a hint of gaslighting present. The phrasing implies that external factors are primarily responsible for Tesla's struggles without acknowledging any internal issues within the company itself. This could mislead readers into thinking that competition and public perception are solely at fault for declines in revenue, rather than considering other potential reasons.

The text states that Tesla reported a "3% decline in total revenue compared to 2024." This comparison could create confusion since 2024 has not yet occurred at the time of writing; thus, it may mislead readers about current financial performance by suggesting an ongoing trend rather than presenting accurate data from completed fiscal periods. It can make readers think there is an immediate decline when there may not be enough context provided.

Elon Musk’s announcement about shifting focus towards humanoid robots frames this transition as part of a larger vision for an “autonomous future.” This language can create a sense of inevitability around robot production while downplaying concerns regarding electric vehicle discontinuation. It positions Tesla’s new direction as progressive and forward-thinking but may obscure potential drawbacks or risks associated with abandoning established products like the Model S and Model X.

The phrase “strategic shift” implies careful planning and foresight behind discontinuing popular models like the Model S and Model X. However, this term can also mask uncertainty or desperation due to market pressures faced by Tesla amid increased competition. By framing it positively as a strategy rather than acknowledging possible reactive measures taken under pressure, it influences how readers perceive Tesla’s decision-making process.

Musk’s mention of retooling the Fremont factory for robot production hints at progress but does not address potential job losses for workers involved in producing electric vehicles. This omission might lead readers to overlook negative consequences for employees affected by these changes while focusing instead on technological advancements promised by robot manufacturing. The language used here prioritizes corporate goals over human impacts, which could skew public perception toward favoring innovation without considering its costs on labor.

The text conveys a range of emotions that reflect the significant changes at Tesla, particularly the discontinuation of the Model S and Model X electric vehicles. One prominent emotion is sadness, expressed through CEO Elon Musk's statement that it is "slightly sad" to end these programs. This emotion appears in the context of nostalgia for the vehicles that played a crucial role in establishing Tesla's reputation as a leader in electric vehicles. The strength of this sadness is moderate; it serves to humanize Musk and create empathy among readers who may feel attached to these iconic models. By sharing this sentiment, the message encourages readers to connect emotionally with the transition, fostering sympathy for both Musk and existing owners.

Another notable emotion present is pride, which emerges from recognizing how the Model S and Model X helped elevate Tesla from a startup to "the world's most valuable automaker." This pride underscores Tesla's achievements and positions them as pioneers in the automotive industry. The strength of this pride is strong, as it highlights past successes while framing the company's shift toward humanoid robots as an ambitious continuation of innovation rather than a retreat from its roots. This emotional appeal aims to inspire confidence among investors and customers about Tesla’s future direction.

Additionally, there are hints of worry related to increased competition and customer reactions to Musk's political involvement. The mention of a 3% decline in total revenue compared to 2024 introduces an element of concern about Tesla’s market position. This worry is subtle but effective; it suggests that despite past successes, challenges lie ahead. By acknowledging these difficulties, the text builds trust with readers by presenting an honest assessment rather than glossing over potential issues.

The overall emotional landscape guides readers’ reactions by creating sympathy for those affected by production changes while also inspiring hope for future innovations like robotaxis and humanoid robots under the Optimus line. These emotions work together to shape public perception positively towards Tesla’s strategic shift.

The writer employs various persuasive techniques throughout this narrative. Emotional language such as "slightly sad" evokes feelings more vividly than neutral terms would have done; this choice enhances emotional impact significantly. Additionally, contrasting past achievements with current challenges emphasizes change's gravity while reinforcing optimism about future endeavors—a technique known as juxtaposition that draws attention effectively.

In summary, through carefully chosen words and phrases laden with emotional weight—like sadness over loss combined with pride in accomplishments—the text not only informs but also persuades readers regarding Tesla’s new direction. It fosters empathy while encouraging trust in Musk’s vision for an autonomous future filled with innovative possibilities.