Quick Highlights:
- Tesla has confirmed a phased discontinuation of the Model S and Model X.
- Low sales volumes and strategic shift toward AI and autonomy cited as key reasons.
- California facility to be repurposed for Optimus robots and xAI infrastructure.
- Focus will intensify on higher-margin, higher-volume Model 3 and Model Y.
Tesla Model S and Model X to Be Discontinued: The End of Two Icons
The Tesla Model S and Model X have played a defining role in shaping not just Tesla, but the modern electric car industry itself. From early adopters to hardcore enthusiasts, these two vehicles proved that EVs could be desirable, practical, and outrageously fast. However, every product has a lifecycle, and Tesla has now confirmed that both models are heading toward retirement.
While Model 3 and Model Y will continue as core offerings, Tesla is preparing to sunset its flagship sedan and SUV in a phased and controlled manner, avoiding a sudden market exit.
How Model S and Model X Changed the EV Game
If there is one brand that made the biggest global impact in the electric car space, it has to be Tesla. After debuting with the Roadster, the company entered the mainstream with the Model S, followed by the Model X.
- Model S showed the world that an electric sedan could outperform supercars.
- Model X blended family practicality with dramatic design elements like falcon-wing doors.
Personally, I see the Model S as the car that forced the entire auto industry to take EVs seriously. Without it, today’s EV boom would likely look very different.
Why Tesla Is Discontinuing Model S and Model X
According to Elon Musk, the decision is driven by declining sales volumes and a strategic pivot toward future technologies.
Key reasons include:
- Low production volumes compared to Model 3 and Model Y
- Higher manufacturing complexity and cost
- A growing focus on self-driving technology, AI, and robotics
Tesla has already discontinued select variants and stopped accepting orders for specific configurations, ensuring existing customer commitments are fulfilled before final production ends.
Model S: Performance Benchmark of the EV World
The Tesla Model S, especially in Plaid form, became a performance legend.
Important highlights:
- 0–60 mph in under 3 seconds for the Plaid variant
- Long Range versions offering up to 650 km of range
- Seamless integration with Tesla’s Supercharger network
Even today, few electric sedans can match the sheer acceleration and refinement that the Model S delivered consistently over the years.
Model X: Practicality with a Theatrical Edge
The Model X carved out a niche of its own.
What made it stand out:
- Three-row seating for families
- Falcon-wing doors, unlike anything else on the road
- Strong performance paired with everyday usability
While polarizing in design, it remained one of the most distinctive electric SUVs ever made.
Bigger Forces at Play: Market Pressure and Public Sentiment
Tesla’s decision also comes at a challenging time for the company.
- Stock value has faced pressure
- A public boycott in the US has emerged amid growing political and social tensions
- Musk’s high-profile political involvement has divided public opinion
In my view, this external pressure has accelerated decisions that were probably inevitable anyway.
What Happens to Tesla’s California Factory?
Tesla’s California manufacturing facility, currently used for Model S and X, will be repurposed for future-forward projects, including:
- Optimus humanoid robots
- xAI infrastructure
- Advanced autonomous vehicle development
This shift underlines Tesla’s intention to evolve from a carmaker into a broader AI and robotics company.
Financial Stakes and the Road Ahead
With Elon Musk’s record USD 1 trillion compensation package tied to long-term valuation milestones, Tesla faces immense pressure to scale profitably.
Additional challenges include:
- Global sales slowdown
- BYD overtaking Tesla as the world’s top-selling EV manufacturer in CY25
- Need to prioritize high-margin, high-volume vehicles
As a result, Model 3 and Model Y will become even more central to Tesla’s strategy going forward.
Conclusion: A Necessary, If Emotional, Goodbye
The discontinuation of Model S and Model X marks the end of an era. These cars were never just products; they were statements. While it is sad to see them go, the move aligns with Tesla’s evolving identity as a technology-first company rather than a traditional automaker.
From a business perspective, it makes sense. From an enthusiast’s heart, it still stings a little.
Frequently Asked Questions — FAQs
Q. Has Tesla officially confirmed the discontinuation of Model S and Model X?
- Yes, Elon Musk has confirmed that both models will be discontinued in a phased manner.
Q. When will Tesla stop producing Model S and Model X completely?
- Tesla has not announced a fixed end date, but several variants have already been discontinued.
Q. Will Model 3 and Model Y continue?
- Yes, Model 3 and Model Y will remain Tesla’s core mass-market offerings.
Q. Why are Model S and X being discontinued?
- Due to low sales volumes, high production costs, and Tesla’s shift toward AI, autonomy, and robotics.
Q. What will Tesla’s California plant be used for next?
- It will be repurposed for Optimus humanoid robots and xAI infrastructure.
Q. Does this mean Tesla is moving away from premium vehicles?
- Not entirely, but the company is prioritizing scalable, profitable models over niche flagships.
