Tesla Model S and X Production Halted, Elon Musk Opts to Build Robots

KatadataOTO – Elon Musk, CEO Tesla recently decided to halt production of two of its electric car models, Model S and X.

The decision was surprising, especially amid the fierce competition from Chinese electric cars.

Tesla itself was previously one of the strong rivals for several Chinese electric car brands such as BYD.

“It's time to honorably halt production of the Model S and X, because we are moving toward an autonomy-based future,” Elon Musk said, quoted from Tech Crunch, Sunday (01/02).

Photo: Tesla

He revealed that consumers still interested in the Model S and X should make purchases soon.

It should be noted that the production of the Model S and X electric cars takes place at the Fremont, California facility.

Instead, Optimus robot production will be carried out at the Fremont factory and a series of other assembly facilities.

“It is indeed somewhat sad, but it's time to discontinue the Model S and X program,” Musk asserted.

Nevertheless, production and sales of other models such as the Cybertruck will continue.

It appears there are several factors that led Elon Musk to finally cease production of the Model S and X, namely a sharp decline in sales.

Tesla, on the contrary, cited the drop in Tesla electric car sales as part of the transition to becoming an Artificial Intelligence (AI) company.

According to The Guardian report, throughout 2025 Tesla's total automotive profit fell by 11 percent from the previous period.

In addition to the Optimus robot, Tesla is also said to be focusing more on developing a self-driving Robotaxi. Both have not yet been disclosed to the public.

However, in the near future, specifically before the end of 2026, Optimus robot production will take place. Sales are slated to begin in 2027.

Fierce Competition with Chinese Brands

The presence of Chinese electric car brands undeniably poses a challenge for many manufacturers, including Tesla.

In 2025, BYD overtook Tesla as the world's largest electric car manufacturer. Its total sales reached 2.26 million, while Tesla managed only 1.63 million.

Besides BYD, brands under SAIC and Chery also recorded positive results and actively exported vehicles to various countries.

Photo: Tesla

The popularity of Chinese electric car brands appears set to continue in the coming period.

Sales of Chinese electric car brands in several countries have also been facilitated by the provision of incentives.

Thus, the already low price of Chinese electric cars can be further reduced after subsidies are granted.