Tesla Changes Course: Ending Model S and Model X Production in 2026
Tesla has officially announced the end of production of its flagship Model S and X in the second quarter of 2026. They will be replaced by a completely new product - the humanoid Optimus robots.
We explore the details of why this decision could change the Indiana electric vehicle market and what fans of classic Teslas should do next.
Where Teslas are made
Tesla's global manufacturing network spans six Gigafactories. Here they are with the key production start dates provided in brackets: Fremont, CA (2010), Austin, TX (2022), Sparks, NV (2016 for batteries/Semi), Shanghai, China (2019), Grünheide, Germany (2022), and Monterrey, Mexico (2026 planned). These sites assemble vehicles for regional markets, with Fremont used as the original hub.
What changes to Tesla's development are expected in 2026?
Tesla’s decision to end production of the Model S and Model X in 2026 has become one of the most discussed events in the automotive industry.
This is not just a change in model lineup - it is a strategic shift that could impact the entire electric vehicle market. For many Tesla fans, the news came as a surprise: until recently, these cars represented the company’s image of premium electric luxury, and now they will be replaced by humanoid robots.
Elon Musk announced the move at a virtual press conference dedicated to the fourth fiscal quarter. He stated that anyone wanting to buy these models should act quickly - this is their final chance.
Starting next quarter, the Fremont, California factory, where Teslas are made and where both the Model S sedan and Model X SUV have been assembled for years, will begin reorienting toward the production of Optimus robots.
Tesla’s big bet: From cars to robots
Tesla’s plans are truly ambitious. According to Musk, the Fremont plant will soon have the capacity to produce up to a million humanoid robots annually. This is not just an experiment - the company is betting on an entirely new segment that could transform the automotive industry and the broader automation and technology sectors.
For owners and potential buyers of the Model S and Model X, the situation is ambiguous. On one hand, discontinuing production could increase the value of these vehicles on the used market.
On the other hand, questions remain about servicing, parts availability, and software support. Tesla has promised continued service, though it has yet to share detailed plans.
Used Tesla vehicles, including the Model S and Model X, can be a smart investment while they are available at Indy Auto Man car lots in Westfield and Indianapolis. Buyers interested in owning one of these luxury electric cars should act fast, as there are several Teslas to choose from.
Which Tesla models will be kept in production in 2026?
After discontinuing the Model S and Model X, Tesla’s lineup will focus on the more affordable Model 3 and Model Y, both recently updated with entry-level versions featuring a single electric motor and rear-wheel drive. The company will also keep producing the Cybertruck electric pickup, which has already made a bold entrance into the market.
The Indy Auto Man EV experts suggest this shift may reflect changing consumer demand - more buyers are choosing compact and cost-effective EVs over luxury models.
However, abandoning its long-standing flagships is a risky decision that might strengthen Tesla’s presence in new market segments while challenging its reputation among premium customers.
Tesla’s vision for 2026-2030
The emphasis on Optimus robots signals a larger ambition: expansion beyond the traditional auto industry. Musk has repeatedly said Tesla’s future lies not only in vehicle production but also in robotics and automation. If the company achieves its goal of producing a million humanoid robots per year at the same facilities where Teslas are made, it would mark a historic shift for the entire tech and manufacturing landscape.
For now, Model S and Model X fans can only watch these autos unfold or hurry to secure one of the final examples of these iconic Tesla cars.
Fortunately, Indy Auto Man in Indianapolis offers a wide selection of used electric vehicles, including premium Tesla trims that may soon be impossible to find elsewhere.
