Tesla to Phase Out Model S and Model X as Musk Bets Company's Future on Humanoid Robots

Elon Musk says Tesla is moving away from cars.

The CEO announced Wednesday that the company plans to discontinue its Model S and Model X vehicles to focus production on Optimus, Tesla's humanoid robot. Musk pitched the robots as capable of household chores, surgical procedures, and eventually making human labor optional—claims he said could help reach Mars and end world poverty.

Experts are less convinced. Critics say humanoid robots face significant technical limitations that may prevent them from becoming practical at scale.

Musk did not provide a timeline for ramping up Optimus production, but his compensation is tied to the bet: Tesla must deliver one million Optimus units within ten years to unlock his nearly $1 trillion pay package.

It's unclear when Model S and Model X production would end or how the shift would affect Tesla's workforce.