Elon Musk: Tesla Halts Model S/X Production for Humanoid Robots?

Tesla has been recording losses for the past two years, forcing Elon Musk to announce production changes. According to announcements, Tesla is halting production of the Model S and Model X, its most expensive models, to focus on humanoid robots.

Musk claims the shift to robots is strategic, but Tesla has lost its leading position in the electric car market to China's BYD. He also announced the Cybercab, a two-seater autonomous vehicle, which he believes will be in high demand.

A Tesla robotic taxi is already operating in Austin, Texas, since June 2025, but it is not fully autonomous. Financial data shows a decrease in sales and profits for Tesla. Adjusted revenue decreased by 16% in the last quarter of 2025, while net income decreased by 61% in the quarter and 46% in the year.

Tesla faces increased competition, especially from Chinese automakers. In 2025, Tesla lost the title of largest electric car manufacturer to BYD.