The announced farewell to the Model S and Model X closes an important chapter in Tesla’s history, but it does not mean the company is walking away from the automotive business. On the contrary, Tesla expects volumes it has never reached before. The company is simply shifting its focus toward what it sees as the true future of the industry: fully autonomous mobility.
Robotaxis and artificial intelligence sit at the core of this new strategy. Tesla plans massive investments to accelerate development in these areas. Spending will exceed $20 billion over the coming years, more than double the $8.5 billion allocated in 2025. CFO Vaibhav Taneja confirmed this figure, explaining that Tesla needs these resources to support the company’s technological evolution.
Tesla bets over $20 billion on robotaxis after ending Model S and X
A large share of the funding will support the expansion of the Robotaxi program and the development of the Cybercab, two pillars Tesla sees as central to its future growth. The company aims to roll out the service in seven additional U.S. cities by the first half of 2026, including Miami, Las Vegas, Houston, Dallas, Phoenix, Tampa, and Orlando, following early trials already underway in San Francisco and Austin.
Elon Musk argues that the autonomous vehicle fleet could grow at an extremely rapid pace, with some analysts suggesting the fleet could even double on a monthly basis. This ambitious outlook demands flawless execution, but it reflects Tesla’s confidence that it is approaching a version of Full Self Driving ready for large-scale deployment.
Within this context, Tesla’s decision to phase out the Model S and Model X represents a strategic move. The company is retiring the models that helped build the brand in order to focus on a different future, one where the car functions primarily as an autonomous technology platform rather than a vehicle designed to be driven. This shift could radically reshape Tesla’s positioning within the automotive industry.
