Tesla is officially closing the chapter on the two vehicles that defined its rise to global prominence. During the Q4 2025 earnings call on Wednesday, CEO Elon Musk announced that production for both the Model S sedan and Model X SUV will conclude next quarter.
While the company will stop taking new orders soon, Musk assured current owners that Tesla will provide support for existing vehicles “for as long as people have them.”
A Strategic Pivot to Autonomy and Robotics
The decision to retire these legacy models marks a definitive shift in the company’s long-term roadmap. The manufacturing space at the Fremont, California factory, which currently produces the S and X, is slated for a major conversion.
- Optimus Integration: Tesla plans to repurpose the former vehicle production lines to build Optimus robots.
- Focus on Autonomy: Musk described the move as an “honorable discharge” for the programs, stating the company’s future is now centered entirely on autonomous systems.
- The Austin Factor: Production of the Cybertruck will continue at the Gigafactory in Austin, Texas, alongside the high-volume Model 3 and Model Y.
The Legacy of the “Ground-Up” Electric Car
The departure of these models marks the end of an era for the electric vehicle industry.
| Model | Launch Year | Significance |
| Model S | 2012 | Tesla’s first “ground-up” design; proved EVs could be luxury status symbols. |
| Model X | 2015 | Known for its complex “Falcon Wing” doors; Musk’s “Faberg of cars.” |
The Model S was particularly instrumental, winning numerous “Car of the Year” awards and introducing performance features like “Ludicrous Mode” ($0-60text{ mph}$ in $2.8text{ seconds}$). It paved the way for the mass-market success of the Model 3.
Market Pressures and the “Niche” Problem
Despite periodic refreshes’including a major interior overhaul in 2021’sales for the S and X have remained relatively flat. Several factors contributed to their retirement:
- Internal Competition: The more affordable Model 3 and Model Y now account for the vast majority of Tesla’s delivery volume.
- Increased Luxury Competition: Established automakers and startups like Rivian and Lucid have eroded Tesla’s dominance in the high-end EV segment.
- The Cybertruck Shadow: While the Cybertruck has faced its own market challenges and missed its original price targets, it has effectively replaced the Model S and X as the company’s “halo” or experimental vehicle.
“They are really of minor importance to our future,” Musk had noted as early as 2019, referring to the S and X as niche products maintained largely for sentimental reasons.
By sunsetting these models, Tesla is betting entirely on a future where it is no longer just an automaker, but a robotics and AI powerhouse.
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