Key Points
- Tesla is ending production of the Model S sedan and Model X SUV.
- The final versions of both vehicles will be made in the next quarter.
- CEO Elon Musk said the company is moving into a “future that is based on autonomy.”
- The factory space used for the S and X will be repurposed to build Optimus robots.
Tesla is saying goodbye to the two cars that started it all. CEO Elon Musk announced on Wednesday that the company will be ending production of its flagship Model S sedan and Model X SUV. The final versions of both electric vehicles will be made next quarter.
“It’s time to basically bring the Model S and X programs to an end with an honorable discharge,” Musk said during the company’s earnings call. “We’re really moving into a future that is based on autonomy.”
The Model S, which launched in 2012, is widely seen as the car that made electric vehicles cool and desirable. The Model X was the company’s second major vehicle program and helped to popularize the electric SUV.
However, sales of both models have slowed in recent years as Tesla has faced increased competition in the luxury EV market from both established automakers and new startups. While the more affordable Model 3 and Model Y have become the company’s bestsellers, the S and X have struggled to keep up.
Musk said that the factory space in Fremont, California, where the Model S and X are currently built, will be repurposed to produce the company’s Optimus humanoid robots. This is a clear sign of Musk’s ambition to transform Tesla from a car company into a broader AI and robotics powerhouse.
For fans of the iconic sedan and SUV, Musk had a simple message: “If you’re interested in buying a Model S and X, now would be the time to order it.”
