Tesla is set to discontinue its larger electric car models, the Model S and Model X, to free up capacity for robot production, the U.S. automaker owned by Elon Musk said on Wednesday.
Owners of the vehicles will continue to receive technical support over the lifetime of their cars, Musk said during a conference call with analysts, adding that production of the two models is due to be phased out in the coming quarter.
Launched in 2012, the Model S was Tesla's first vehicle developed entirely in-house. It helped establish the company's reputation for producing electric cars that could compete with the combustion-engine vehicles dominating the market at the time, offering strong driving range, speed and a distinctive design.
The Model X, known for its falcon-wing doors, followed in 2015. Both models have been refreshed several times since being launched.
More recently, newer vehicles such as the Model 3 and Model Y have come to dominate Tesla's business, accounting for nearly 97% of deliveries last year.
Tesla plans to use the existing production lines for the Model S and Model X to manufacture its humanoid robots, known as Optimus. Musk has previously said he aims to begin selling the robots by the end of next year.
The company also intends to start producing fully autonomous robotaxi vehicles this year, branded Cybercab, which will not have a steering wheel or pedals.
Musk said that in the future Tesla expects to build far more of these vehicles than any of its other models. He added that the Cybertruck is also expected to be developed into a fully autonomous vehicle.
