Tesla Discontinues Model S and X, Musk Announces ‘Honorable Discharge’
Tesla’s CEO, Elon Musk, announced that the company will discontinue the Model S and Model X in the upcoming quarter. This marks a significant change for Tesla as it phases out its premium sedan and SUV offerings.
Tesla’s Transition to a New Era
Musk referred to this decision as an “honorable discharge” for these models. He emphasized that the company is focused on shifting towards a future dominated by autonomous vehicles. During the fourth-quarter earnings call, he stated, “It’s time to basically bring the Model S and X programs to an end.”
Production Changes and Future Plans
The production lines for the Model S and Model X at the Fremont Factory in California will be replaced by an Optimus factory. This facility aims for a long-term target of producing one million robots annually. Despite discontinuing these models, Tesla will continue to support existing Model S and Model X owners.
- Model S prototype unveiled: 2009
- First deliveries of Model S began: 2012
- Model X announced: 2012
- First deliveries of Model X began: 2015
- Last significant upgrades: 2025
Musk noted that customers interested in purchasing these vehicles should act quickly, indicating that now is an ideal time to place an order.
Performance and Pricing
The Model S and Model X have been among Tesla’s oldest and most expensive models. As of the announcement, the prices were set as follows:
| Model | Base Price | Plaid Price |
|---|---|---|
| Model S | $94,990 | $109,990 |
| Model X | $99,990 | $114,990 |
Upgrades introduced in 2025 included enhanced driving range, improved noise cancellation, and smoother suspension. However, these models did not incorporate many of the advanced technologies featured in the upcoming Cybertruck.
Market Impact
Following the announcement, Tesla’s stock saw a rise due to the company surpassing earnings expectations. Additionally, Musk revealed plans to invest $2 billion into xAI, a venture focused on artificial intelligence.
Moreover, Tesla is set to unveil the third generation of its Optimus robot later this quarter, signaling further innovation within the company.
Overall, while the discontinuation of the Model S and Model X may seem somber, it reflects Tesla’s broader commitment to an autonomous future.
