Tesla’s Car Lineup Will Soon Be Less S3XY As Musk Pitches $20B Pivot Into Autonomy, Robotics

The company now eyes 2026 capital expenditure of about $20 billion, up from the $8.5 billion reported in 2025.

• Musk said on Wednesday that the company is looking to discontinue the production of the company’s more premium Model X and Model S cars in the coming quarter.
• The company’s Fremont factory will now be transitioned into Optimus lines, the CEO said.
• While the company is looking to pull back on Model S and X, it has no such intentions for the Cybertruck, Musk clarified.

Tesla Inc. (TSLA) CFO Vaibhav Taneja said on Wednesday that the company is eyeing 2026 capital expenditure in excess of $20 billion, compared to $8.5 billion in 2025, as it scales production of its Cybercab and Tesla Semi while also gearing up for production of the Optimus humanoid robot.

The company is looking to start production of the Cybercab, its dedicated robotaxi offering with no steering wheel or pedals, in April. Tesla is also looking to unveil the next generation of its humanoid robot Optimus in the first quarter, which will enter production by the end of the year.

Model S, X Discontinuation

Musk said on Wednesday that the company is looking to discontinue the production of the company’s more premium Model X and Model S cars in the coming quarter as it seeks to free up factory space.

"It is time to bring the S/X programs to an end. It's part of our overall shift to an autonomous future," Musk said on Tesla's fourth-quarter earnings call.

The company’s Fremont factory will now be transitioned into Optimus lines, the CEO said, while adding that the company is looking to add headcount at the plant and there are no plans for any layoffs.

While Tesla has deployed a few Optimus robots currently at its factories, they are not in usage in “any material way,” Musk said.

"We don't expect any significant Optimus volume production until the end of this year," he added.

The Autonomous Future

Tesla launched robotaxis with no safety monitors earlier this month in Austin, marking a key step towards Musk’s ambitions of deploying autonomous vehicles in as much as half of the U.S. by year-end.

Currently, the company has about 500 Model Y vehicles operating as robotaxis across the Bay Area and Austin, Musk said. However, the company is being cautious while scaling the service, he added.

Cybertruck To Carry On

While the company is looking to pull back on Model S and X, it has no such intentions for the Cybertruck, Musk clarified. Tesla executive Lars Moravy noted that the vehicle, despite its low sales numbers, continues to be the best-selling in the EV pickup category. However, the company is considering autonomy for the vehicle as well, Musk said.  

"We will transition the Cybertruck line to a full autonomous vehicle line. An autonomous Cybertruck could be very useful," Musk said.

In 2025, deliveries of the Tesla Model S, X and Cybertruck cumulatively came in at 50,850 units, accounting for just about 3% of the company’s overall 1.63 million deliveries.

TSLA shares pared after hour gains on the heels of the earnings call and were up 1% at the time of writing.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around TSLA stock fell from ‘neutral’ to ‘extremely bearish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘high’ levels.

TSLA stock has gained 8% over the past 12 months. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<