Tesla is facing steep competition in the premium electric vehicle segment, so it decided to just become a company offering cheaper electric cars by parting with its most iconic Model X and Model S vehicles altogether, months after their refresh.
The new Volvo EX60, for instance, is a 2-ton SUV that can go 400 miles on a charge, close to what Tesla's longest-range vehicle, the Model S sedan, can cover. Still, it'd cost 30% less than the Model X while offering a modern 800V powertrain and a more premium interior.
A similar conundrum faces the Model S, which is 20% more expensive than, say, the Lucid Air Touring, yet offers similar specs and fewer comfort features. Since it is becoming increasingly apparent that Tesla can't compete on price in the premium EV segment for some reason, it has decided to end the life of both the Model X and the Model S.
When will Model X and Model S be discontinued?
- April-May 2026
Tesla will stop making the Model S and Model X by June 2026 but will continue to support their owners. Elon Musk cited some nebulous "shift to an autonomous future" as the reason why the Model S and Model X are being discontinued, but the reality is that they simply don't sell. The Model S and Model X sales are down 50% for the full year, and Tesla's "other" vehicles category in the sales chart was rather negligible to begin with.
Just like the Cybertruck, these are vehicles that cost north of $100,000, yet offer an aging powertrain, slow charging, and an interior that leaves a lot to be desired at this price point, so falcon wing doors or 1,000 HP tri-motor configurations couldn't save them.
What happens with the Cybertruck?
Tesla is also mulling what to do with the Cybertruck that sells even worse than the Model X or the Model S. After making efforts to introduce its inventory in countries like the UAE, Tesla is now deciding whether to market it as an autonomous workhorse instead. "We will transition the Cybertruck line to just a fully autonomous line," waxed Musk. "There’s a lot of cargo that needs to move locally within a city, and an autonomous Cybertruck could be very useful for that."
In other words, Tesla is not sure what to make of the Cybertruck's existence, either, so all of its premium vehicles are now on the chopping block for the retail customer. Tesla started with luxury electric cars, but there is no market for them now, at least not for its offerings, so it is apparently becoming a company that sells only mid-rangers like the Model Y or Model 3. As for the Fremont factory space where the Model S and Model X used to be made, it will apparently turn to Optimus and solar assemblies instead.
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