Elon Musk to retire Tesla Model S and X to make way for humanoid robots in spring 2026
End of an “S3XY” Era: Tesla Confirms Retirement of Model S and X to Make Way for Robotic Future
The year 2026 marks a historic turning point for the auto industry, and especially for the Elon Musk-led giant. What began as a revolution in electric luxury sedans is officially coming to an end: Tesla's Model S and Model X will be permanently retired from production this spring.
The decision, confirmed by Musk during the last meeting with investors (January 2026), ends the "golden age" of the brand, making way for a radical transformation. Tesla no longer wants to be just a car manufacturer, but a robotics and artificial intelligence company.
An "Honorable Discharge" for Pioneers
The Model S, launched in 2012, was the car that showed the world that electric vehicles could be sexy, fast, and desirable. The Model X followed in 2015, setting the tone with its “Falcon Wings” doors and cutting-edge technology. However, in Elon Musk’s view, these models have served their purpose.
"It's time to bring the Model S and X programs to an end with an honorable retirement. We are truly moving toward a future based on autonomy," Musk said.
What's happening to the Fremont factory? The California production lines where these models were assembled will undergo a complete recalibration. Instead of luxury sedans, Tesla will produce humanoid Optimus robots here. Musk is betting everything on these robotic assistants, estimating that demand for Optimus will exceed the value of the entire automotive division in the future.
The Situation in Romania: Between Subsidies and Drastic Decreases
The Romanian market fully felt the turbulence of 2025. After being the undisputed leader of the electric segment, Tesla faced a harsh reality: the brand's sales have decreased by over 56% in the last 12 months.
The main causes identified in the local market are:
- Drastic cuts in Rabla Plus subsidies: The reduction in the eco-bonus has tempered the enthusiasm of Romanian buyers.
- Local competition: Dacia Spring remains at the top of preferences due to its price, and premium segment customers have begun to turn to German or Asian alternatives.
- Lack of news: While the Model S and X have stagnated technologically, the Romanian public has migrated to the Model Y, the only one that still manages to maintain decent volumes.
Chinese Assault: Xiaomi and BYD are no longer in talks
If a few years ago Musk was joking about Chinese manufacturers, today the situation is the opposite. BYD has dethroned Tesla globally in terms of the number of electric vehicles delivered in 2025, offering comparable technology at much lower prices.
But the real "headache" for Tesla in 2026 is called Xiaomi. The tech giant has demonstrated an astonishing speed of execution:
- The Xiaomi SU7 has already surpassed the Model 3's sales volumes in China.
- The Xiaomi YU7 (the recently launched SUV) directly attacks the Model Y segment, offering a software integration that Tesla seems to have neglected in favor of promises about Full Self-Driving (FSD).
In China, Tesla is no longer seen as the absolute technological leader, being perceived more as a "traditional" brand in the electric universe, forced to enter into aggressive price wars to survive.
Pivot Strategy: India and the World Beyond the Wheel
With the retirement of the expensive models (S and X), Tesla is reconfiguring its global presence. The company is now focusing on two major directions:
- Conquering India: Tesla is accelerating plans for a manufacturing facility in Satara, Maharashtra. The first locally assembled vehicles are expected to roll off the line in March 2026, targeting a huge, yet untapped market.
- Focus on Autonomy: The new Tesla lineup will be based on the "Survival Trio": Model 3, Model Y and Cybertruck, plus the upcoming Cybercab (Robotaxi). The goal is to completely eliminate the need for a driver, turning the car into a service, not just a consumer good.
Conclusion
The retirement of the Model S and X in 2026 is not just a business decision, but a statement of intent. Elon Musk is sacrificing the brand's glorious past for an uncertain but ambitious future dominated by robots and artificial intelligence. In a world where the Chinese dominate mass production, and markets like Romania are becoming increasingly demanding, Tesla has chosen to no longer compete in the "old league" of automakers, but to try to invent a new one. It remains to be seen whether Optimus will be able to fill the void left behind by the elegance of the Model S.