Tesla is formally closing the chapter on the 2 autos that outlined its rise to international prominence. Throughout the This autumn 2025 earnings name on Wednesday, CEO Elon Musk introduced that manufacturing for each the Mannequin S sedan and Mannequin X SUV will conclude subsequent quarter.
Whereas the corporate will cease taking new orders quickly, Musk assured present homeowners that Tesla will present help for current autos “for so long as folks have them.”
A Strategic Pivot to Autonomy and Robotics
The choice to retire these legacy fashions marks a definitive shift within the firm’s long-term roadmap. The manufacturing house on the Fremont, California manufacturing facility, which at the moment produces the S and X, is slated for a serious conversion.
- Optimus Integration: Tesla plans to repurpose the previous car manufacturing strains to construct Optimus robots.
- Give attention to Autonomy: Musk described the transfer as an “honorable discharge” for the packages, stating the corporate’s future is now centered solely on autonomous programs.
- The Austin Issue: Manufacturing of the Cybertruck will proceed on the Gigafactory in Austin, Texas, alongside the high-volume Mannequin 3 and Mannequin Y.
The Legacy of the “Floor-Up” Electrical Automotive
The departure of those fashions marks the top of an period for the electrical car trade.
| Mannequin | Launch 12 months | Significance |
| Mannequin S | 2012 | Tesla’s first “ground-up” design; proved EVs might be luxurious standing symbols. |
| Mannequin X | 2015 | Recognized for its advanced “Falcon Wing” doorways; Musk’s “Faberg of vehicles.” |
The Mannequin S was notably instrumental, successful quite a few “Automotive of the 12 months” awards and introducing efficiency options like “Ludicrous Mode” ($0-60text{ mph}$ in $2.8text{ seconds}$). It paved the best way for the mass-market success of the Mannequin 3.
Market Pressures and the “Area of interest” Drawback
Regardless of periodic refreshes’together with a serious inside overhaul in 2021’gross sales for the S and X have remained comparatively flat. A number of components contributed to their retirement:
- Inside Competitors: The extra inexpensive Mannequin 3 and Mannequin Y now account for the overwhelming majority of Tesla’s supply quantity.
- Elevated Luxurious Competitors: Established automakers and startups like Rivian and Lucid have eroded Tesla’s dominance within the high-end EV section.
- The Cybertruck Shadow: Whereas the Cybertruck has confronted its personal market challenges and missed its authentic worth targets, it has successfully changed the Mannequin S and X as the corporate’s “halo” or experimental car.
“They’re actually of minor significance to our future,” Musk had famous as early as 2019, referring to the S and X as area of interest merchandise maintained largely for sentimental causes.
By sunsetting these fashions, Tesla is betting solely on a future the place it’s not simply an automaker, however a robotics and AI powerhouse.
