Tesla Inc. (NASDAQ:TSLA) will stop producing the Model S, as well as the Model X, CEO Elon Musk confirmed during the company's fourth-quarter earnings call.

Tesla Ends Model S, Model X Production

During Tesla's Q4 earnings call on Wednesday, Musk relayed the news to investors and analysts that the automaker would be scrapping its two premium offerings. "It’s time to bring the Model S and X programs to an end with an honorable discharge," Musk said, adding that Tesla intends to "basically stop production" of the vehicles next quarter.

The company has delivered an estimated 730,000 to 740,000 units of both cars since their introduction in 2012 and 2016.

Musk also outlined that the Model S and X production at the Fremont, California, facility would be converted to produce the Optimus humanoid robot as Tesla shifts "to an autonomous future."

Speaking of which, Musk also shared that the Cybertruck would be converted to a "fully autonomous line" in the future, adding that it could be used for transporting cargo autonomously.

The Cybertruck has been a miss for Tesla so far, with the company struggling to move units off the showroom lots and sales declining consistently. In 2025, the Cybertruck experienced a 48% plunge in sales. 

It Is Still A Little Sad, Says Elon Musk

Responding to a post on the social media platform X on Wednesday, Musk shared that it was sad to see the two models being pulled out of the automaker's lineup. "S and X will always continue to exist in the fleet, just not in production, but it is still a little sad," he said.

Tesla Q4 Earnings, xAI Investment

The company also announced a $2 billion investment into Musk's artificial intelligence company xAI, with the deal expected to be finalized in the first quarter of 2026, provided it clears regulatory hurdles.

According to Benzinga Edge Rankings, Tesla scores well on the Momentum metric and offers a favorable price trend in the Long term.

Price Action: TSLA jumped 2.01% to $440.13 during Overnight trading on Wednesday.

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