On Tesla's fourth-quarter earnings call, CEO Elon Musk said the company is ending production of its Model S and X vehicles.

Tesla CEO Elon Musk said Wednesday that the company would begin phasing out its Model S and Model X electric vehicles this year and retool a California factory to produce humanoid robots instead

The Tesla chief said the company plans to sell Optimus robots by the end of 2027 at the World Economic Forum in Davos, Switzerland.

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CEO Elon Musk recently provided encouraging updates on Tesla's autonomous driving and humanoid robotics technology.

Elon Musk said Tesla's Optimus humanoid robots could be available for public purchase by the end of 2027, saying the robots should be reliable, safe and capable of a range of functions.

Space in the EV-maker’s Fremont factory will be used to produce one million Optimus 3 robots annually, Musk says.

CEO Elon Musk declared this week that the company’s Optimus 3 humanoid robot will “move the needle” on US GDP, backing the claim with a $20 billion capital spending commitment focused on robotics and autonomous vehicles.

Elon Musk is accelerating the development of Optimus humanoid robots, aiming for mass production to begin by late 2026. To facilitate this, Tesla will halt production of Model S and Model X SUVs, reallocating resources for robot assembly.

Tesla endured a difficult sales year in 2025, as Chinese automaker BYD overtook it to become the world’s top-selling electric-vehicle maker. New tariffs and regulatory shifts that have slowed EV adoption could place additional pressure on the Austin-based automaker,

The billionaire CEO of Tesla and SpaceX, in his first appearance at Davos, said Tesla could start selling its Optimus robots next year.

Analysts have been cutting Tesla earnings expectations following fourth-quarter results and Elon Musk's big capital spending plans for 2026.