Tesla is set to end production of its long-running Model S sedan and Model X SUV, with CEO Elon Musk announcing the decision during the company’s latest quarterly earnings call.

The move marks the end of two vehicles that helped define Tesla’s early success in the electric vehicle market.

Elon Musk confirmed that Tesla will produce the final versions of the Model S and Model X in the next quarter. He assured existing owners that the company will continue providing support for both vehicles for as long as they remain in use.

Musk described the decision as an “honorable discharge,” saying Tesla is now moving toward a future centered on vehicle autonomy. He urged interested buyers to place orders soon if they want either model.

Factory shift toward optimus robots

Both the Model S and Model X are currently manufactured at Tesla’s Fremont, California factory. Once production ends, the space will be repurposed for building Tesla’s Optimus humanoid robots.

Tesla’s Cybertruck, which is produced at the company’s factory near Austin, Texas, will continue manufacturing without changes.

Model S

Although Tesla’s first vehicle was the Roadster, the Model S was the company’s first ground-up design. Launched in 2012 with a base price of $57,400, it introduced a floor-mounted battery that improved cabin space and driving dynamics.

The Model S offered multiple battery options, allowing customers to pay for additional range. It quickly gained popularity, securing more than 10,000 reservations before deliveries began.

By 2013, the Model S was named MotorTrend’s Car of the Year, surpassing traditional gasoline-powered competitors. Tesla continued refining the sedan, introducing features such as “Ludicrous Mode,” which enabled a 0–60 mph time of just 2.8 seconds.

Despite major updates and a full interior and exterior refresh in 2021, sales slowed as Tesla’s lower-priced Model 3 and Model Y took center stage.

Model X

First teased in 2012 and launched in 2015, the Model X became known for its distinctive Falcon Wing rear doors. While the feature improved accessibility, it also created significant production challenges.

Musk later referred to the Model X as the “Fabergé of cars,” highlighting both its luxury appeal and its fragility in manufacturing.

Although the Model X sold well alongside the Model S, it faced recurring quality and scalability problems. A major refresh in 2021 failed to resolve these issues, and Musk admitted in 2022 that Tesla had made a mistake by halting production before the redesigned version was ready.

Tesla had always planned for the more affordable Model 3 and Model Y to outsell the Model S and X. In recent years, sales of both flagship models flattened despite multiple updates.

The slowdown coincided with rising competition from traditional automakers and newer EV brands such as Rivian and Lucid Motors in the luxury segment.

Tesla’s Cybertruck, revealed in 2019, was expected to be a major success. The company projected annual production of 250,000 units and a starting price of $40,000.

However, delays caused by the Covid pandemic and design complexity pushed back its launch. When it finally reached the market, sales fell short of expectations, with Tesla struggling to sell even a few thousand units per quarter.

Tesla grouped the Cybertruck, Model S, and Model X under “other models” in its sales reports, making it difficult to assess individual performance. Analysts say the continued presence of the Model S and X helped soften the impact of the Cybertruck’s underwhelming reception.