Tesla Ending Production of Models S and X in Q1, Making Way for Optimus Robotics Mass-Production

[https://www.cnbc.com/2026/01/29/elon-musk-tesla-pivot-to-ai-robots-wall-street-reaction.html](https://www.cnbc.com/2026/01/29/elon-musk-tesla-pivot-to-ai-robots-wall-street-reaction.html)

[https://www.theguardian.com/technology/2026/jan/28/tesla-q4-earnings-estimates-elon-musk](https://www.theguardian.com/technology/2026/jan/28/tesla-q4-earnings-estimates-elon-musk)

In the clearest sign yet that Tesla is pivoting away from its electric car business, its CEO, [Elon Musk](https://www.theguardian.com/technology/elon-musk), announced on Wednesday’s investor call that the company would discontinue production of its Model X SUV and Model S full-size sedan.

“It’s time to basically bring the Model S and X programs to an end,” Musk said. “We expect to wind down S and X production next quarter.”

The model S and X factory in Fremont, California, would be converted to produce Tesla’s upcoming Optimus robot, Musk said.

The question is: Is the market ready for it?

And is this a strategic move planned for sometime, or a pivot necessitated by plummeting Tesla EV sales?

\- Total automotive revenues dropped -11% YoY

\- 25Q4 Vehicle deliveries down -16%

Yet somehow, despite plummeting auto sales, and pivot to an unproven market - that is not forecasting sales until 2027 - the stock continues to climb.

WTF is happening