Tesla will end production of its Model S sedan and Model X SUV next quarter, marking the retirement of two of the company’s longest running vehicle programs as it refocuses manufacturing and strategy on autonomy and robotics.
Production To Wind Down Next Quarter
Tesla chief executive Elon Musk announced the decision on Wednesday during the company’s quarterly earnings call. Musk said the final versions of the Model S and Model X will be produced next quarter and that Tesla will continue to support existing owners for as long as they keep their vehicles.
He said the company is moving toward a future centered on autonomous systems and that the Model S and Model X programs will be brought to an end as part of that transition.
Both vehicles are built at Tesla’s Fremont, California factory. After production ends, the company plans to use the same facility space to manufacture Optimus robots. Production of the Cybertruck, which is built at Tesla’s factory near Austin, Texas, will continue.
Early Flagship Vehicles For Tesla
Tesla launched the Model S in 2012. While it was not the company’s first vehicle, following the original Roadster, it was the first Tesla designed entirely in house. The sedan helped establish electric vehicles as a viable option for a wider market.
The Model S debuted with a base price of $57,400 and featured a floor mounted battery that improved interior space and driving dynamics. Tesla offered multiple battery options, allowing customers to pay more for extended range. The company collected more than 10,000 reservations before deliveries began in June 2012.
By 2013, the Model S was named car of the year by MotorTrend, surpassing gasoline powered competitors. Tesla continued to update the vehicle with new battery configurations and performance features, including the introduction of Ludicrous Mode, which enabled acceleration from 0 to 60 miles per hour in 2.8 seconds.
The Model S received a major exterior and interior refresh in 2021 and maintained one of the longest driving ranges among electric vehicles.
Model X Development And Production Challenges
The Model X was first teased in 2012 but did not reach customers until 2015. The SUV introduced rear Falcon Wing doors designed to improve passenger access. While the feature drew attention, it also contributed to manufacturing complexity and quality issues.
Musk later referred to the Model X as the “Fabergé of cars,” reflecting both its luxury positioning and the difficulty of producing it at scale. The vehicle sold alongside the Model S and received a refresh in 2021, though production disruptions continued. In early 2022, Musk said Tesla had made a mistake by halting production before the redesigned Model X was ready for mass manufacturing.
Shift Toward Lower Cost Models
Tesla has long expected its more affordable vehicles, the Model 3 sedan and Model Y SUV, to significantly outsell the Model S and Model X. While those models became the company’s main sales drivers, their growth has slowed in recent years despite periodic design updates.
At the same time, Tesla has faced increasing competition in the luxury electric vehicle segment from established automakers and newer companies such as Rivian and Lucid Motors.
Musk previously described the Model S and Model X as niche vehicles. In 2019, he said Tesla continued producing them more for sentimental reasons than for their strategic importance, even as sales volumes remained in the tens of thousands per quarter.
Cybertruck And Strategic Direction
Tesla’s first entirely new vehicle program in years, the Cybertruck, was unveiled in 2019 with plans for a $40,000 base price and annual production of 250,000 units. Delays tied to the pandemic and the vehicle’s design pushed its launch back, and sales have remained limited since its release.
Despite public support for the Cybertruck from Tesla, sales have not met early expectations. The vehicle has been grouped with the Model S and Model X under an “other models” category in Tesla’s sales reports.
Musk said Tesla is now focused on advancing autonomy in vehicles and robotics, a shift that ultimately led to the decision to end the Model S and Model X programs.
Featured image credits: Wikimedia Commons
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