Tesla ends Model S and Model X production; focus shifts to Cybercab and Optimus robot

Just a few hundred Tesla Model S and Model X vehicles remain unsold, Tesla CEO Elon Musk said this week, confirming that custom orders for both models are over. Musk said in a post on X that only inventory units are left.

Declining demand for Model S and Model X

Musk previously said in January that Tesla would end production of the Model S and Model X. The shift reflects years of falling sales as Tesla’s higher-volume, lower-priced lineup—Model 3 and Model Y—captured demand.

Tesla does not report Model S and Model X sales separately; it groups them under “other models,” a category that now also includes the Cybertruck. Combined figures show S and X sales peaking in 2017 at 101,312 vehicles, before dropping to 50,850 vehicles in 2025 (including Cybertruck). That compares with Tesla’s 1.63 million global deliveries last year.

What Tesla is betting on next

Rather than replacing the Model S and Model X with a traditional lower-cost EV, Musk abandoned plans for a vehicle expected to be priced around $25,000. Instead, Tesla is focusing on two newer bets tied to its AI strategy: Optimus and the Cybercab.

Tesla plans to build Optimus robots at its Fremont, California, factory once Model S and Model X production ends. Musk also said Tesla will begin producing the Cybercab this month at its Austin, Texas, factory.

Context: how S and X shaped Tesla

The Model S launched in 2012 as Tesla’s first volume EV, helping change consumer perceptions of electric vehicles and pushing legacy automakers to pay closer attention. The Model X arrived in fall 2015 and was described by Musk as the “faberge egg of EVs.”

While the Model X faced delays and early criticism over complexity, it ultimately helped broaden Tesla’s market reach. The Model S and Model X also set up Tesla’s next major moves: the mass-market Model 3 and the Model Y, which helped Tesla become the top-selling EV producer globally for a period before BYD took the lead in 2025 with 2.26 million EVs delivered.

Tesla’s broader sales picture

Tesla continues to sell thousands of Model 3 and Model Y vehicles, but growth has stalled and even reversed. In January, Tesla reported that it sold 1.69 million vehicles in 2025, marking a decrease for the second consecutive year.

For the first quarter of 2026, Tesla reported deliveries of 358,023 EVs globally, about 6% higher than the same period in 2025. The 2025 quarter was Tesla’s worst in years, and the 358,023 figure came in below analysts’ expectations of around 368,000. Tesla also introduced cheaper, stripped-down versions of the Model 3 and Model Y in October, though the article describes the results as only modest.

Cybercab: regulatory and operational risks

The Cybercab is designed to operate without traditional controls such as a steering wheel or pedals. That means it would launch without the initial backup of a human safety operator.

The first Cybercab rolled off Tesla’s factory assembly line in February, and it is supposed to enter mass production this month, though the article notes that timelines have often slipped in Tesla’s history.

Unlike prior challenges that centered on production, the Cybercab faces a regulatory hurdle before it can operate on public roads. Federal motor vehicle safety standards require vehicles to have features such as steering wheels and pedals. The article says there is no evidence Tesla has applied for an exemption, based on publicly available files with the Federal Register and the National Highway Traffic Safety Administration.

The Cybercab would also rely on Tesla’s Full Self-Driving (FSD) software to navigate public streets and shuttle passengers. Despite improvements to FSD and limited driverless robotaxi tests in Austin, Tesla has not yet demonstrated that its software can operate reliably at scale.

Robotaxi deployment also involves operational complexity. In states such as California, it requires permits to deploy and charge for rides in driverless vehicles.

Potential precedent from Zoox

Zoox, the autonomous vehicle company owned by Jeff Bezos’ Amazon, may provide a path for Tesla. Zoox received an exemption from the National Highway Traffic Safety Administration allowing it to demonstrate custom-built robotaxis on public roads. The article says Zoox’s robotaxis also lack pedals or a steering wheel, and that Zoox is now seeking to extend its exemption to commercial operations.

Musk’s argument for the risk

Musk addressed the risk during Tesla’s January earnings call. He said the “vast majority of miles traveled will be autonomous in the future,” and suggested that less than 5% of miles driven would involve a person operating the car, adding that it could be as low as 1%.