I was stuck in traffic yesterday, squinting at the Tesla in front of me, trying to decipher if it was a Model S or X—the automotive equivalent of spotting a rare bird. Then it hit me: this guessing game might soon be obsolete. Tesla is reportedly halting production of the Model S and X.
The End of an Era for Tesla’s Flagships
Tesla watchers noticed something was up last summer when Tesla stopped taking Model S and X orders in Europe. During a recent earnings call, Elon Musk confirmed what many suspected: production of both models is ending.
The Model S, around since 2012, was the elder statesman of the current lineup, a modern successor to the Roadster. The Model X, the luxury SUV with those distinctive falcon-wing doors, arrived three years later, catering to the American craving for taller vehicles. Now, it seems, both are headed for the automotive graveyard, leaving the Model 3 (“the cheaper one”) and Model Y (“the cheaper crossover SUV”) to carry the torch.
“We expect to wind down S and X production next quarter and basically stop production,” Musk stated, adding, “That is slightly sad, but it’s time to bring the S and X programs to an end, and it’s part of our overall shift to an autonomous future.”
Robots Over Rides?
The shift, according to some analysts, is tied to Tesla’s ambition to build robots. The Fremont, California plant needs space to churn out Tesla Optimus bots.
Think of it as a sculptor discarding early sketches to focus on their masterpiece. For Tesla, that “masterpiece” seems to be automation, a concept encompassing everything from software to robotic factories. It’s a significant pivot, moving away from being “just” a car company.
Musk is telling investors not to get hung up on outdated notions like Tesla being a car company. He envisions a world where his robots are pioneering medical marvels and, astonishingly, generating wealth for everyone.
One claim suggests the humanoid robot will “eliminate poverty and provide universal high income for all.”
What does this mean for Tesla’s production goals?
If true, this move represents a radical bet. Musk is betting the company’s future not on vehicles but on the still-nascent field of robotics. This is no longer just about competing with GM or Ford; it’s about redefining what Tesla *is*. Musk is trying to create a future where cars are a stepping stone, not the destination.
Why are the Model S and X being discontinued?
It’s a fascinating high-stakes game. He’s selling investors a vision, and Wall Street seems to be buying it. The market is treating Tesla less like an automaker and more like a tech firm with sky-high potential. The old models have become excess inventory to be discarded.
The Model S and X, despite their luxury status, simply don’t fit into Musk’s futuristic blueprint. They are merely means to an end, a stepping stone on the way to full automation. They are the flip phones of the self-driving era.
How will this affect Tesla’s stock (TSLA)?
The market’s reaction will reveal whether investors are truly on board with Musk’s grand vision, or if they still value the tangible reality of high-end electric vehicles. This is a test of faith, and the results could reshape Tesla’s future.
So who needs a couple dumb old “cars” that can “make money for his company” when he’s selling a dream, and he’s not selling it to customers, but to investors. What’s more, Wall Street is, somehow, continuing to gobble that dream right up.
Is this a brilliant, if audacious, move, or is Musk overplaying his hand?