Electric vehicle maker Tesla will end production of its flagship Model S sedan and Model X SUV next quarter, Chief Executive Officer Elon Musk announced during the company’s quarterly earnings call on Wednesday.
Musk said Tesla would continue to support existing owners “for as long as people have the vehicles,” but confirmed that the two models are being phased out as the company pivots towards autonomous technology and robotics.
“An honourable discharge” for legacy models
“It’s time to bring the Model S and X programmes to an end with an honourable discharge,” Musk said, adding that Tesla’s future is now centred on autonomy. Customers interested in purchasing either model were advised to place orders soon.
Both vehicles are currently built at Tesla’s Fremont, California factory. Once production ends, the facility will be repurposed for manufacturing Optimus humanoid robots, Musk said. Production of the Cybertruck, made in Texas, will continue.
Cars that shaped Tesla’s rise
Launched in 2012, the Model S was Tesla’s first ground-up design and the car that made electric vehicles appealing to a mass audience. It went on to win MotorTrend’s Car of the Year in 2013 and introduced features such as long-range battery options and “Ludicrous Mode” acceleration.
The Model X, launched in 2015, followed with its distinctive Falcon Wing doors but faced persistent manufacturing challenges. Musk later described it as the “Fabergé of cars”, reflecting both its luxury and complexity.
Sales stagnation and rising competition
While once central to Tesla’s identity, sales of the Model S and X have plateaued in recent years. The company’s growth has increasingly depended on the more affordable Model 3 and Model Y, amid rising competition from legacy automakers and newer EV brands.
Musk has previously acknowledged that the two models had become “niche” offerings.
Focus turns to autonomy
With Tesla now positioning itself as an autonomy and robotics company, the retirement of the Model S and X marks the end of an era. Though no longer central to its future, the two vehicles remain foundational to Tesla’s rise and its transformation of the global EV market.