Tesla will end production of its Model S sedan and Model X SUV. CEO Elon Musk made the announcement during the company’s quarterly earnings call on Wednesday. He stated that the final versions of both electric vehicles will be manufactured next quarter. Musk added that Tesla will continue to offer support for existing Model S and Model X owners for as long as those vehicles are on the road.
Musk explained the decision, saying it is time to honorably conclude the Model S and X programs as the company moves into a future focused on autonomy. He advised that anyone interested in purchasing a Model S or Model X should place their order now.
Both vehicles are built at Tesla’s factory in Fremont, California. Once production ends, the space currently used for the Model S and X will be repurposed to build Optimus robots.
The Model S launched in 2012 and is widely regarded as the first electric vehicle to achieve broad mainstream appeal. The Model X was Tesla’s second major vehicle program. The company always intended for its more affordable models, the Model 3 sedan and Model Y SUV, to far outsell these earlier vehicles.
However, sales of the Model S and Model X have stagnated in recent years despite updates. Tesla faces increased competition in the luxury electric vehicle market from established automakers as well as newer companies like Rivian and Lucid Motors.
Musk reflected on the news, calling it slightly sad, but reiterated that it is time to bring the S and X programs to an end. This story is developing.