San Francisco — Tesla has confirmed it will discontinue production of its Model S sedan and Model X SUV by mid-2026, as the company reallocates manufacturing capacity and investment toward artificial intelligence, autonomous driving technologies, and robotics.

The decision was disclosed during Tesla’s latest earnings call and later reported by Autoblog. Chief executive Elon Musk said the move reflects a strategic reassessment of Tesla’s product mix, noting that the two vehicles now account for a relatively small share of the company’s overall sales compared with its higher-volume models.

Introduced more than a decade ago, the Model S and Model X were central to Tesla’s early growth and helped establish the company as a global leader in electric vehicles. Over time, however, Tesla has expanded its focus toward mass-market models and software-driven technologies, particularly in autonomous systems.

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Tesla said production space at its Fremont, California, facility — long associated with the Model S and Model X — will be repurposed for projects related to autonomy and artificial intelligence. These include development work on advanced driver-assistance systems and the company’s Optimus humanoid robot. Tesla did not provide a detailed transition schedule for the factory but confirmed that the shift will take place gradually.

The company said existing Model S and Model X owners will continue to receive full service, maintenance, and spare parts support after production ends. Tesla added that its service infrastructure and supply chains will remain in place to support vehicles already in use.

The announcement comes as automakers globally adjust product strategies amid rising competition in the electric vehicle market and increasing investment in software, automation, and data-driven systems. Tesla’s decision highlights how manufacturers are balancing traditional vehicle production with emerging technologies that are shaping the next phase of the industry.