Tesla to end Model S and Model X production
What's the story
Tesla is discontinuing the production of its iconic Model S sedan and Model X SUV, CEO Elon Musk announced during a recent earnings call. The last units of these electric vehicles will be produced in the upcoming quarter. Musk assured that Tesla would continue to support current owners of these models for as long as they use them.
Strategic pivot
A shift toward autonomy and robot production
Musk explained this decision is part of Tesla's strategic shift toward an autonomous future. He said, "It's time to basically bring the Model S and X programs to an end with an honorable discharge, because we're really moving into a future that is based on autonomy." He also hinted at the company's plans to use its Fremont factory space for producing Optimus robots after ending production of these two models.
Legacy models
Tesla's Model S and X: A brief history
The Model S, launched in 2012, was the first car to make electric vehicles mainstream. The Model X followed three years later as Tesla's second major EV program. Despite their legacy, sales of these models have stagnated in recent years due to stiff competition from both traditional automakers and new entrants like Rivian and Lucid Motors. Musk's decision to discontinue these models is part of a larger plan to transition Tesla from a car company to an automation company.