Tesla is nearing the end of its Model S and Model X lineup, with only a few hundred vehicles left in inventory after closing custom orders. Chief executive Elon Musk said in a post on X that no new custom orders are being accepted, leaving only remaining stock available.
Declining Sales Led To Phase Out Decision
Tesla signaled the end of production for the Model S sedan and Model X SUV in January. Sales of both vehicles have declined over time as lower-cost models gained traction. Tesla groups these vehicles under its “other models” category, which now also includes the Cybertruck.
Combined sales for this category peaked in 2017 at 101,312 vehicles and fell to 50,850 vehicles in 2025, a figure that includes Cybertruck deliveries. By comparison, Tesla delivered 1.63 million vehicles globally last year.
Model S And X Played Key Role In Tesla’s Early Growth
The Model S launched in 2012 as Tesla’s first volume electric vehicle and helped shape early consumer interest in EVs. The Model X followed in 2015, introducing features such as its distinctive design and expanding Tesla’s market reach.
The Model X experienced delays and early criticism related to complexity but later contributed to broader customer adoption. Both models preceded Tesla’s shift toward higher-volume vehicles.
Shift Toward Mass Market Models And New Strategy
Tesla’s Model 3 and Model Y have become the company’s primary sales drivers. The Model 3 faced early production challenges but later expanded Tesla’s presence in the mass market. The Model Y further strengthened that position.
Despite continued sales of these models, Tesla reported delivering 1.69 million vehicles in 2025, marking a second consecutive year of declining annual sales. Efforts to increase demand through lower-priced versions of the Model 3 and Model Y introduced in October have produced limited gains.
In the first quarter of 2026, Tesla delivered 358,023 vehicles globally, about 6% more than the same period in 2025 but below analyst expectations of around 368,000.
No Immediate Replacement For Flagship Models
Tesla is not introducing a direct replacement for the Model S and Model X. The company had previously explored a lower-cost vehicle priced around $25,000, but that project was canceled.
Instead, Tesla is focusing on new initiatives, including the Optimus humanoid robot and the Cybercab, an autonomous two-seat electric vehicle first shown as a concept in 2024.
Production of Optimus is expected to take place at Tesla’s Fremont, California factory once Model S and Model X production ends. The Cybercab is scheduled to enter production at Tesla’s Austin, Texas facility.
Cybercab Faces Regulatory And Technical Challenges
The Cybercab is designed without traditional controls such as a steering wheel or pedals. This design introduces regulatory challenges, as U.S. vehicle safety standards require such components. There is no indication that Tesla has applied for an exemption with regulators including the National Highway Traffic Safety Administration.
The vehicle will rely on Tesla’s Full Self-Driving software to operate autonomously. While the company has conducted limited driverless tests in Austin, it has not demonstrated large-scale deployment.
Autonomous vehicle operations also require permits in certain states, including California, to operate and charge for driverless rides.
Industry Context And Competitive Developments
Zoox, owned by Jeff Bezos’s Amazon, has received an exemption allowing it to test vehicles without steering wheels or pedals on public roads. The company is seeking approval to extend that exemption to commercial operations.
Tesla’s shift comes as it adjusts its long-term direction. Musk has described the company as focusing on artificial intelligence, with autonomous driving and robotics forming key parts of that strategy.
Featured image credits: Pexels
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