KATHMANDU: Tesla is preparing to discontinue its two longest-running and most recognizable vehicles, the Model S and Model X.
CEO Elon Musk confirmed the decision during the company’s latest earnings call. Production of both models will end next quarter.
Musk said the move is part of Tesla’s shift towards autonomy and robotics. He described it as an “honorable end” for the Model S and Model X, adding that the company is moving into a new phase focused on future technologies. While calling the decision a “sad” moment, he said it reflects Tesla’s long-term direction.
The production space at Tesla’s Fremont, California factory, where the Model S and Model X are currently built, will be repurposed. Tesla plans to use the facility to manufacture Optimus humanoid robots. Musk claimed the factory could eventually produce up to one million Optimus units per year.
The Model S and Model X played a key role in Tesla’s early success. They helped establish the brand as a serious global automaker and showcased Tesla’s performance and range capabilities. However, demand for both models has remained limited compared to newer vehicles.
Tesla is expected to gradually wind down production over the coming months. Reports suggest that variant options have already been reduced in several markets, with some trims no longer available for new orders.
The main reason behind the decision is scale and efficiency. The Model S and Model X sell in much lower numbers than the Model 3 and Model Y, which now form the core of Tesla’s global sales. As competition increases and EV prices face pressure, Tesla is prioritizing high-volume models with simpler production and stronger margins.
In its latest form, the Model S offers long driving range and strong performance, with dual-motor all-wheel drive and rapid acceleration.
The Model X delivers similar electric performance with added space, seating for up to seven, and its distinctive falcon-wing doors.
