"Tesla Inc (NASDAQ:TSLA) made a bold move this week, during the company's Q4 2025 earnings call: CEO Elon Musk unveiled a vision where Tesla owners can loan their vehicles to the company's robotaxi network, turning every Model 3 or Model Y into a revenue-generating asset. The Model S sedan and Model X SUV are being discontinued to free up factory space for Optimus humanoid robots. Tesla isn't just pivoting toward autonomy-it's betting the farm on it."
"Musk laid out the thesis with characteristic confidence. Tesla has logged over 6 billion miles of supervised Full Self-Driving (FSD) data and more than 250,000 miles without a safety driver in Austin alone. The company expects to remove safety drivers entirely in parts of Austin within months and expand to 8 to 10 metro areas by end of 2026. The Cyber Cab, a vehicle designed without steering wheels or pedals, enters production in Q2 2026."
"The discontinuation of the Model S and Model X isn't just product rationalization-it's a signal. These vehicles represented Tesla's premium tier, the halo products that established the brand. Killing them to make room for Optimus robots suggests Musk believes future value lies in physical AI, not luxury sedans. Fremont's factory space is now earmarked for humanoid robot production, with a 1 million unit production line targeted for late 2026."
Tesla intends to enable Model 3 and Model Y owners to lend vehicles to a company-operated robotaxi network, creating passive income for owners and ride-margin capture for Tesla. The plan leverages over 6 billion supervised FSD miles and more than 250,000 miles driven without safety drivers in Austin to remove safety drivers in parts of Austin within months and expand to 8–10 metro areas by end of 2026. A Cyber Cab designed without steering or pedals will enter production in Q2 2026. Model S and Model X production will cease to free Fremont capacity for Optimus humanoid robot manufacturing, targeting a one million unit line by late 2026.
Read at 24/7 Wall St.
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