Tesla will discontinue production of the Model S sedan and Model X SUV globally, marking the end of an era for two vehicles that once defined the electric vehicle (EV) market. While already unavailable in the UK for two years, this move signals a complete withdrawal from global sales.
A Legacy of Innovation
The Model S, launched in 2012, and Model X (2015) were pivotal in establishing Tesla as a leading EV manufacturer. These vehicles set a high standard for electric performance, design, and interior packaging. Despite their success, both models have remained in production for over a decade, making them relatively aged in the rapidly evolving automotive industry.
Why Now? Declining Sales and a Strategic Pivot
The decision to end production comes amid Tesla’s first-ever revenue decline. Stagnant sales of the high-volume Model Y and Model 3, along with weak demand for the polarizing Cybertruck, contributed to a 61% profit drop in the last quarter of 2023. This financial pressure likely accelerated Tesla’s decision to reallocate resources.
The Future is Autonomous: Robotics and AI Take Center Stage
Rather than replacing the Model S and Model X, Tesla is doubling down on autonomous driving, artificial intelligence, and robotics. The California factory previously used for these models will now focus on mass-producing the Optimus humanoid robot. The company is also heavily invested in developing its driverless Robotaxi, signaling a clear shift in strategic priorities.
Tesla’s move reflects a broader trend in the automotive industry: a growing focus on software, automation, and new mobility solutions over traditional vehicle production.
Despite receiving significant updates as recently as last year, including major changes introduced with the Plaid edition in 2021, Tesla has opted to prioritize its future in AI-driven technologies. The end of the Model S and X represents a deliberate reshaping of Tesla’s identity – from a premium EV manufacturer to a technology-first robotics and AI powerhouse.
