Tesla Discontinues Model S and Model X in Q2 2026: What It Means

In January 2026, during Tesla's quarterly earnings call, CEO Elon Musk announced that the company will discontinue the Model S sedan and Model X SUV. Production of both vehicles will end in Q2 2026—marking the official end of what many consider the most important electric vehicles ever built. After that point, Tesla's Fremont factory will transition to manufacturing Optimus humanoid robots, fundamentally reshaping how the company allocates manufacturing capacity according to CNBC.

This isn't a sudden pivot. It's the culmination of a strategic shift that's been building for years. The Model S and Model X revolutionized the automotive industry when they launched in 2012 and 2015 respectively. They proved that electric vehicles could be desirable, fast, and profitable at scale. But Tesla's vision has evolved dramatically. The company now sees the future not in selling individual cars to consumers, but in building autonomous systems and robots that will generate recurring revenue as reported by The Verge.

What makes this decision significant isn't just that two iconic vehicles are being retired. It's what the decision reveals about Tesla's confidence in autonomous driving technology, its confidence in next-generation vehicle platforms, and where the real money is in the automotive industry going forward. For nearly 15 years, the Model S has been the gold standard for electric sedans. The Model X has been one of the few premium electric SUVs worthy of the premium price tag. Their discontinuation represents a clean break with Tesla's past and a full commitment to a completely different future according to Electrek.

But let's dig deeper into what's actually happening here, why it matters, and what the implications are for Tesla, the automotive industry, and the millions of people who drive these vehicles.

The End of an Era: Understanding the Timeline

Musk was clear about the timeline during the earnings call. Q2 2026 is the final quarter for both Model S and Model X production. That gives existing customers and potential buyers roughly four to six months to place orders if they want one of the final builds. After Q2 ends, the Fremont factory—which has been the exclusive manufacturing location for both vehicles—will pivot entirely to Optimus robot production as detailed by CNBC.

This is a definitive sunset, not a vague "maybe someday" situation. When Musk said there would be an "honorable discharge" for both vehicles, he was signaling respect for their legacy while making clear the decision is final. The company won't be producing limited anniversary editions, special final runs, or anything like that. Production simply stops as noted by Business Insider.

Tesla has committed to supporting existing owners "for as long as people have the vehicles." This means parts availability, software updates, service, and warranty coverage will continue indefinitely. That's an important safeguard for the millions of Model S and Model X owners worldwide. But it also means Tesla is psychologically preparing the market for a post-Model-S/X world as reported by Cars.com.

The timing is notable too. Q2 2026 falls roughly 14 years after the Model S launched and 11 years after the Model X entered production. Both vehicles had remarkably long production runs by automotive standards. Most car models get refreshed or replaced within 7-10 years. The fact that Tesla kept the Model S and Model X competitive for so long—through multiple hardware iterations, software updates, and refresh cycles—shows how fundamentally sound the underlying designs were according to Car and Driver.

Tesla plans to gradually reduce Model S and Model X production leading up to their discontinuation in June 2026. Estimated data shows a steady decline in production volume.

Why Now? The Autonomy Bet

Musk has been obsessed with autonomous driving for over a decade. Every major Tesla announcement since 2016 has circled back to some version of full autonomy or self-driving capability. Full Self-Driving (FSD) is now available to millions of Tesla owners, and while it's not truly "full autonomy" in the legal sense, it's increasingly capable. The company has invested billions in neural networks, data collection, and autonomous driving infrastructure as reported by Business Insider.

The shift toward Optimus production reveals where Tesla sees the real opportunity. A humanoid robot that can work 24/7 with minimal supervision could be vastly more profitable than selling individual cars. A single robot might cost

By contrast, selling a Model S at

Musk framed the discontinuation explicitly around autonomy. "It's time to basically bring the Model S and X programs to an end with an honorable discharge, because we're really moving into a future that is based on autonomy." This wasn't a comment about manufacturing efficiency or market demand. It was ideological. Tesla is making a statement about what company it wants to be as detailed by CNBC.

The Fremont factory was perfect for Model S and Model X production because it was proven, reliable, and had sufficient capacity. But that same space is valuable real estate for building robots because Optimus production doesn't require massive stamping presses and paint shops. It requires precision robotics, assembly lines optimized for delicate electromechanical work, and testing facilities. The factory can be retooled faster and more efficiently than building a new facility from scratch as reported by The Verge.

Estimated data shows that while a Model S sale generates a one-time revenue of

Market Reality: Model S and Model X Sales Have Flatlined

Let's be honest about the underlying reality. While the autonomy narrative is compelling, there's a commercial reality that's driving this decision too. Model S and Model X sales have been declining or flat for years, despite multiple refreshes and enhancements as noted by Money Digest.

When Tesla refreshed the Model S in 2020 and again in 2024, the company invested significant engineering resources into improving the interior, redesigning the dashboard, adding new features, and modernizing the powertrain. Both refreshes were genuinely good cars. But neither generated a surge in demand. Sales have remained relatively flat compared to the boom years of 2017-2019 as reported by WebProNews.

The Model 3 and Model Y, by contrast, have continued to dominate. The Model Y is currently one of the best-selling vehicles in the world—not just best-selling EV, but best-selling vehicle, period, in many markets. The Model 3 similarly dominates the sedan segment globally. These vehicles are cheaper to produce, more accessible to consumers, and generate massive volume according to Cars.com.

From a financial perspective, the Model S and Model X represent a shrinking slice of Tesla's total revenue. Discontinuing them allows the company to reallocate engineering talent, manufacturing capacity, and capital toward vehicles and products that generate higher returns. It's a rational business decision dressed up in futuristic rhetoric as noted by Business Insider.

That said, the autonomy bet isn't just marketing fluff. The company genuinely believes—or wants to believe—that self-driving technology will be the dominant value driver within the next 3-5 years. If that's true, then spending resources on new Model S and Model X variants that will be obsolete in a few years is foolish. You might as well shut them down and focus on robotics as detailed by CNBC.

The Legacy of Model S: Revolutionary Then, Yesterday's News Now

It's worth pausing to acknowledge what the Model S actually accomplished. When Tesla launched the Model S in 2012, the automotive industry treated it as a curiosity. People didn't believe electric vehicles could be fast, reliable, and desirable simultaneously. The Model S proved them wrong according to Cars.com.

The original Model S could accelerate from 0-60 faster than a Porsche 911 while seating five adults comfortably and traveling 300+ miles on a charge. When conventional wisdom said electric cars were slow, heavy, and expensive, Tesla built a car that was the exact opposite. The Model S reset expectations and forced every legacy automaker to wake up and start building credible electric vehicles as noted by Car and Driver.

Beyond performance specs, the Model S introduced features that became standard across the industry. The minimalist interior with a large touchscreen was revolutionary in 2012. Over-the-air software updates were unheard of in cars. The integrated charging network (Superchargers) was a completely novel concept. The Model S wasn't just a car, it was a platform that demonstrated what automotive technology could be as reported by Electrek.

Fifteen years later, the Model S still holds up reasonably well as a vehicle. It's quick, comfortable, and technologically current thanks to years of refinement. But it's not revolutionary anymore. Dozens of automakers now build compelling electric sedans. The Lucid Air, BMW iX M60, Mercedes-Benz EQE—these are all legitimate alternatives that didn't exist in 2012 as noted by The Verge.

What made the Model S special wasn't any single feature or specification. It was that it existed at all. It proved the market was viable. Once that was proven, the competitive advantage evaporated as detailed by CNBC.

Estimated data suggests that Tesla's next-generation platform could reduce manufacturing costs from 37.5% to 25% of the selling price, enhancing profitability.

Model X: The SUV That Changed Market Expectations

The Model X launched three years after the Model S, in 2015. Its defining feature—the falcon-wing doors—made headlines and became a design icon. Those doors were more than aesthetic flourish. They signaled that electric vehicles didn't need to follow the template established by 50 years of internal combustion engines as reported by Cars.com.

The Model X also proved something important: electric vehicles could scale to different body styles. If Tesla could make a successful sedan, could they also make a successful SUV? Yes. This opened the door (pun intended) for the rest of the industry to confidently invest in electric SUVs, which have become the dominant vehicle category globally as noted by Car and Driver.

Like the Model S, the Model X has aged well. It's still faster than most SUVs on the road. The independent suspension provides a comfortable ride. The interior space is genuinely impressive. But it's also proven that the basic formula works, which means other companies have replicated and refined it as detailed by CNBC.

The Rivian R1S offers seven seats with superior off-road capability. The BMW iX M60 provides more advanced technology integration. The Kia EV9 offers three rows of seating at a lower price point. The Model X's uniqueness has been competed away over the years, even as the vehicle itself remained good as reported by The Verge.

From Tesla's perspective, continuing to invest in Model X production made less sense each year. The profit margins were solid, but the growth had stalled. The engineering resources required to keep it current could be applied to next-generation platforms that might offer better margins, more innovative features, or alignment with future strategic goals like autonomy as noted by Electrek.

The Competitive Landscape That Made Discontinuation Possible

A decade ago, discontinuing the Model S and Model X would have been unthinkable. Tesla needed those vehicles to establish credibility and establish market presence. Now, the competitive landscape is completely different as noted by Business Insider.

Lucid Motors launched the Lucid Air in 2021 as a direct Model S competitor. It's a stunning sedan with better interior technology and more spacious rear seating. The problem? Lucid has struggled with production volume and profitability. Still, the existence of the Air proved that other companies could build compelling electric sedans as reported by Car and Driver.

Rivian entered the market with the R1S and R1T, focusing on the adventure SUV and electric truck segments respectively. Both vehicles are impressive, and Rivian has built a loyal customer base. However, Rivian has also faced manufacturing challenges and has yet to achieve consistent profitability as detailed by CNBC.

Tradition automakers have woken up. BMW's i7 and iX sedans and SUVs are genuinely excellent vehicles with deep dealer networks and established service infrastructure. Mercedes-Benz's EQE, EQS, and EQC are technologically advanced. Audi's e-tron lineup is compelling. Even Ford's Mustang Mach-E and GM's Lyriq are solid products as noted by Money Digest.

The point: Tesla no longer needs the Model S and Model X to prove that electric vehicles work or to maintain credibility. The market has moved beyond that. Every major automaker now offers electric versions of their most popular models. The competitive moat around Tesla's early vehicles has eroded completely as reported by WebProNews.

Given that, keeping the Model S and Model X in production becomes a question of manufacturing optimization and strategic focus, not necessity as noted by Business Insider.

Estimated data suggests that Model 3 and Y will dominate Tesla's revenue, with Optimus robots projected to become a significant future contributor.

Where's the Next Innovation? The Model 2 and Next-Gen Architecture

Musk hasn't given extensive details about what comes next for Tesla's vehicle lineup, but there are hints. He's mentioned a "next-generation platform" that will be far more efficient to manufacture and could enable lower-cost vehicles. This platform might power vehicles codenamed Model 2 or other variants as reported by Electrek.

The next-generation platform is key to understanding why Model S and Model X discontinuation makes sense. If Tesla is on the verge of launching vehicles built on a completely new architecture—one that's cheaper to manufacture, more advanced technologically, and better suited to autonomous driving—then continuing to produce vehicles on the current platform becomes legacy work as detailed by CNBC.

The Model S and Model X are built on a platform designed in the early 2010s and refined continuously over 10+ years. A next-generation platform could be optimized for modern manufacturing techniques, newer battery chemistries, more advanced autonomous driving hardware, and direct-to-consumer sales models. Once that platform launches, the Model S and Model X would feel technologically antiquated by comparison as noted by The Verge.

This is standard industry practice. When automakers transition to new platforms, they typically phase out the old one. The fact that Tesla is doing this with relative transparency—explicitly stating the discontinuation date and rationale—is actually more customer-friendly than how legacy automakers handle platform transitions as reported by Business Insider.

The Optimus Bet: Why Tesla Is Betting the Farm on Robots

The Fremont factory space being reallocated to Optimus production isn't incidental. It's central to understanding Tesla's strategic pivot. Optimus—Tesla's humanoid robot project—has been in development for years but is now moving toward commercialization according to Electrek.

The vision is compelling: a bipedal robot standing roughly five feet tall, capable of performing various tasks, with the dexterity to manipulate small objects and the strength to move heavy loads. If engineered correctly, Optimus could be deployed in factories, warehouses, restaurants, retail environments, and eventually homes as detailed by CNBC.

The economic case for robots is simple: labor costs are rising globally. Manufacturing productivity gains have plateaued in many sectors. If you could deploy a robot that costs $25,000 and works reliably for 8-10 years with minimal maintenance, you'd solve a fundamental supply-side constraint in manufacturing and logistics as noted by Business Insider.

Tesla has advantages in building Optimus. The company has neural network expertise from years of Autopilot and FSD development. It has robotics knowledge from its manufacturing operations. It has AI infrastructure and data collection capabilities. Few companies have this combination of skills as reported by The Verge.

The risk is equally obvious: humanoid robotics is a genuinely hard problem. Boston Dynamics has been working on humanoid robots for over a decade and hasn't achieved commercial viability. If Tesla succeeds where others have struggled, the upside is enormous. If it fails, Tesla has pivoted away from proven vehicle platforms toward an uncertain new market as noted by Manufacturing Today.

But that's the bet Musk is making. The Model S and Model X are being discontinued not because they're bad cars, but because Musk believes the future of Tesla's manufacturing and value creation lies in robotics, not in incremental improvements to existing vehicle platforms as detailed by CNBC.

Estimated data suggests factories and warehouses are the primary sectors for Optimus deployment, with potential expansion into retail and home environments.

What This Means for Current Model S and Model X Owners

If you own a Model S or Model X, the discontinuation announcement doesn't change anything immediately. Tesla has committed to supporting these vehicles indefinitely. Parts will be available. Software updates will continue. Service centers will repair them according to Cars.com.

In fact, discontinuation might be good news for current owners. Once production ends, the number of Model S and Model X vehicles on the road becomes fixed. As these vehicles age and some are retired from service, the used market could tighten, potentially supporting prices. Collectibility increases when production ends. Eventually, early Model S and Model X vehicles—especially the original 2012-2015 models—might become sought-after collectibles as noted by Car and Driver.

For those thinking about buying a Model S or Model X before production ends, there's a limited window. After Q2 2026, you'll need to buy used. Used Model S prices are currently in the

The service question is important though. Tesla's service network is still smaller than traditional automakers. If you live in an area without nearby Tesla service, you might face challenges getting parts or repairs as the vehicles age. This is worth considering before buying a late-run Model S or Model X as noted by Business Insider.

Implications for the Broader EV Market and Automakers

Tesla's decision to discontinue the Model S and Model X sends signals beyond Tesla's own business. It suggests that the golden age of high-margin, low-volume electric vehicles is ending. The future, from Tesla's perspective, is either high-volume affordable vehicles (Model 3, Model Y) or autonomous systems as detailed by CNBC.

For legacy automakers, this is instructive. BMW, Mercedes, Audi, and others have built premium electric vehicles that compete directly with the Model S and Model X. As Tesla walks away from this segment, these companies are left with a shrinking pool of high-margin EVs but no clear answer on how to make money in the long run. Premium EV margins are under pressure as competition intensifies and battery costs decline as noted by Money Digest.

For upstart EV makers like Lucid and Rivian, Tesla's discontinuation is both opportunity and warning. Opportunity: there's market space opening up for premium sedans and SUVs. Warning: Tesla has concluded that this market isn't worth the engineering resources going forward. If Tesla thinks premium EVs are a dead end strategically, maybe other companies should reconsider their entire roadmap as reported by WebProNews.

The broader message: the electric vehicle market is maturing. The days of building an EV, slapping a premium price tag on it, and enjoying fat margins are ending. Going forward, competition will be on cost, scale, features, and increasingly, on autonomous driving capability. Companies that haven't figured out how to build at scale or achieve autonomous driving parity with Tesla are going to be in trouble as noted by Business Insider.

Estimated data shows a decline in sales for Tesla Model S and Model X from 2017 to 2024, despite updates in 2020 and 2024. Estimated data.

The Financial Impact: What This Means for Tesla's Bottom Line

On a financial level, discontinuing the Model S and Model X likely improves Tesla's profitability in the short term. Manufacturing expensive, complex sedans and SUVs generates less margin per unit sold than manufacturing lower-cost vehicles at higher volume. The Model 3 and Model Y have lower per-unit manufacturing costs and higher volumes, making them more profitable overall despite lower per-vehicle prices as detailed by CNBC.

By consolidating around Model 3 and Model Y for the vehicle business, Tesla can achieve better manufacturing efficiency. The Fremont factory can specialize in one product type rather than managing multiple product lines. Supply chains can be simplified. Inventory management becomes more straightforward as noted by Business Insider.

The Optimus bet is where the real financial ambition lies though. If Optimus becomes commercially viable and scales to thousands or tens of thousands of units annually, the revenue potential could dwarf the entire vehicle business. A

In the near term, the Model S and Model X discontinuation removes a product line that was generating single-digit percentage profit margins. Manufacturing will shift to Optimus, which has unknown profitability but perceived long-term upside. It's a strategic gamble, not a crisis-driven decision as noted by The Verge.

Timeline and What Happens After Q2 2026

The practical timeline is important. From now until the end of Q1 2026, Tesla will continue taking orders for Model S and Model X vehicles. Customers ordering in Q1 will receive their vehicles in Q2, with some potential spillover depending on production schedules as detailed by CNBC.

During Q2 2026 itself, Tesla will be ramping down Model S and Model X production while simultaneously ramping up Optimus production in the same facility. This is logistically complex—you can't instantly convert a car factory to a robot factory. There will be a period of parallel production, facility reconfiguration, and supply chain adjustments as noted by Business Insider.

By Q3 2026, the transition should be complete. The Fremont factory will be fully focused on Optimus production. Tesla might maintain a small service and repair operation in Fremont for Model S and Model X owners, but manufacturing will be completely eliminated as reported by Electrek.

Internally, Tesla will need to retrain workers, reconfigure assembly lines, and adjust supplier relationships. Some suppliers who provided specialized components for Model S and Model X production might need to find other customers. This ripples through the supply chain in ways that could affect other automakers or manufacturers as noted by The Verge.

By the end of 2026, the discontinuation will be complete and largely forgotten except by enthusiasts and analysts. The industry will move on to the next Tesla announcement. But the decision itself—to kill off two pioneering vehicles in service of a completely different strategic vision—will reverberate for years as detailed by CNBC.

Why the "Honorable Discharge" Language Matters

Musk's use of military terminology—"honorable discharge"—wasn't accidental. It signals respect for the vehicles' contributions while making clear that the decision is final and thoughtful, not reactive or impulsive as noted by Business Insider.

In military terms, an "honorable discharge" is given to soldiers who have served with distinction and integrity. Applying this language to the Model S and Model X acknowledges their historical importance while providing a dignified exit. It's PR-smart language that respects the vehicles' legacy while not allowing for ambiguity about the decision's permanence as detailed by CNBC.

Compare this to how legacy automakers handle product discontinuations. Often they announce it quietly, phase out production gradually, and hope nobody notices. Tesla's approach is more transparent: "These vehicles are ending, we respect what they've accomplished, and here's exactly when it's happening" as reported by The Verge.

This transparency serves multiple purposes. It gives customers time to make purchase decisions. It allows supply chain partners to adjust. It prevents the awkward situation where customers are still buying new versions of a vehicle that's being quietly discontinued. And it allows Tesla to own the narrative rather than having media outlets make claims about failures or market decline as noted by Electrek.

Broader Strategic Shifts: What This Reveals About Tesla's Future

The Model S and Model X discontinuation is part of a broader strategic shift at Tesla that encompasses autonomous driving, robotics, energy storage, and insurance. The company is gradually transforming from a pure automotive manufacturer into a technology platform company as detailed by CNBC.

Within the next 3-5 years, Tesla expects autonomous driving to be the primary revenue driver for its vehicle business. Every Tesla will be equipped with self-driving capability, enabling owners to generate revenue by deploying their vehicles in Tesla's autonomous fleet when not in personal use. This completely changes the vehicle business model from one-time sales to recurring service revenue as noted by Business Insider.

Energy storage—through Powerwall, Powerpack, and Megapack products—is becoming an increasingly important business. Battery manufacturing and storage represents a business that's structurally different from vehicles and potentially more profitable as reported by The Verge.

Optimus robotics is the long-term bet. If successful, it could eventually exceed vehicle revenue as noted by Electrek.

In this context, Model S and Model X become legacy products. They don't fit the autonomous vehicle future (no revolutionary autonomous driving features that justify the premium), they don't fit the robotics future, and they don't fit the energy storage future. They're being discontinued not because they're failures, but because they don't align with where Tesla wants to focus resources as detailed by CNBC.

Lessons for Other Automakers

Tradition automakers could learn valuable lessons from Tesla's decision. The auto industry is fundamentally conservative—companies tend to extend product lifecycles, maintain numerous variants, and hedge their bets across multiple segments. This creates inefficiency and dilutes focus as detailed by CNBC.

Tesla's approach is more radical: make decisions clearly, discontinue products when they no longer fit the strategy, and redeploy resources to future opportunities. It's more efficient and more risk-focused as noted by Business Insider.

However, legacy automakers operate under constraints Tesla doesn't face. They have massive dealer networks that depend on product diversity. They have existing supply contracts and manufacturing infrastructure. They have shareholder bases that expect stable, predictable cash flows rather than radical strategic pivots as reported by The Verge.

Tesla can discontinue entire product lines in pursuit of robotics ambitions. GM or Ford would face lawsuits from dealers, labor disruptions, and shareholder revolts. This structural difference makes Tesla more nimble but also smaller and more vulnerable to individual strategic decisions turning out wrong as noted by Electrek.

If Optimus fails to achieve commercial viability, Tesla's discontinuation of Model S and Model X will look like a catastrophic mistake. The company will have abandoned proven, profitable products in pursuit of an unproven technology. But if Optimus succeeds, it will look like a brilliant strategic move made at exactly the right moment as detailed by CNBC.

The Emotional Impact on Tesla Community

Beyond the financial and strategic analysis, there's an emotional component to this announcement. The Tesla community—particularly early adopters who bought Model S vehicles in the early 2010s—have a genuine emotional attachment to these vehicles. They represent the early days of the EV revolution as detailed by CNBC.

For many people, buying a Model S was a statement of faith in electric vehicles when skepticism was common. Owning a Model S provided status, performance, and the satisfaction of driving the "car of the future." The Model S and Model X owners form a cohort that experienced the transformation of the automotive industry as noted by Business Insider.

The discontinuation announcement is, in a sense, Tesla saying goodbye to that era. The days of the flagship electric vehicle as the primary product are ending. The focus is shifting to mass-market vehicles (Model 3, Model Y) and future technologies (autonomy, robotics) as reported by The Verge.

This doesn't diminish what Model S and Model X owners accomplished. Their purchases validated the EV market, drove innovation, and helped establish Tesla as a serious automotive company. But it does signal a generational shift within the company and the industry as noted by Electrek.

For enthusiasts and Tesla loyalists, the discontinuation of Model S and Model X production is bittersweet. These vehicles proved that electric vehicles could be better than gas cars in nearly every way. Retiring them—even for a potentially more exciting future with robotics—represents the end of an era as detailed by CNBC.

Manufacturing and Supply Chain Implications

From a manufacturing perspective, transitioning Fremont from Model S and Model X production to Optimus production is complex but manageable. Modern auto factories are increasingly flexible, with reconfigurable assembly lines and modular production systems as detailed by CNBC.

However, the supply chain implications are significant. Fremont currently sources specialized components for the Model S and Model X—particular battery packs, motors, control systems, interior materials, and trim components. When production ends, Tesla will need to phase out supplier relationships and renegotiate contracts as noted by Business Insider.

Suppliers that specialized in Model S and Model X components will need to find alternative customers or will need to exit the business. This could create disruption in the supply chain and affect other automakers who might use some of the same suppliers as reported by The Verge.

On the positive side, Optimus production requires different components—specialized actuators, high-precision sensors, advanced neural processing hardware. This creates opportunities for new suppliers to enter the Tesla supply chain. Companies that build robotics components, AI processors, and advanced sensors will see opportunities as noted by Electrek.

Overall, the transition is manageable but not trivial. Tesla has managed similar transitions before, and the company has expertise in supply chain management. But there will be a period of adjustment and reconfiguration as detailed by CNBC.

Market Timing: Is This the Right Move?

One could argue that Tesla is discontinuing the Model S and Model X at exactly the right time—after establishing their viability and before they become liabilities. The vehicles have proven successful for 14 and 11 years respectively. They've achieved their purpose. Retiring them at the peak of their maturity is strategically sound as noted by Business Insider.

Alternatively, one could argue Tesla is abandoning its flagship products too soon. The premium EV market is growing, not shrinking. Competitors are increasing investment in electric sedans and SUVs. By discontinuing Model S and Model X, Tesla is ceding market share to companies like Lucid, Rivian, and legacy automakers' electric vehicles as reported by The Verge.

The reality is somewhere in between. Tesla is making a bet that the future of automotive profit lies in autonomous driving and mass-market vehicles, not in premium sedans. This might prove correct, or it might not. But it's a clear, deliberate bet rather than a desperate reaction to market conditions as noted by Electrek.

Conclusion: The End of Tesla's First Chapter

The discontinuation of Model S and Model X production in Q2 2026 marks the symbolic end of Tesla's first chapter as a company. The Model S proved that electric vehicles were viable, desirable, and could compete with the best gas-powered cars on every metric. The Model X proved that this principle extended beyond sedans to SUVs and other body styles as detailed by CNBC.

These vehicles weren't just products. They were statements of intent. They established Tesla as a serious automotive company, not a boutique EV maker. They changed the industry and forced every major automaker to take electric vehicles seriously as noted by Business Insider.

Now, with the EV revolution established and the competitive landscape crowded with electric alternatives, Tesla is moving on. The company is betting that the next waves of growth will come from autonomous driving capabilities, direct-to-consumer sales models, energy storage, and robotics. The Model S and Model X, while still excellent vehicles, no longer fit into this vision as reported by The Verge.

For the automotive industry, this is instructive. The companies that will thrive going forward are those that can innovate at the product level while also innovating at the business model level. Tesla is attempting both simultaneously—discontinuing flagship products while betting the company on robotics and autonomous driving as noted by Electrek.

It's a bold move that could look brilliant in five years or catastrophic. But it's unmistakably bold, and that boldness is what defines Tesla as a company. The Model S and Model X proved that bold moves could transform industries. Now Tesla is making an even bolder move by walking away from the vehicles that proved that principle as detailed by CNBC.

For customers interested in buying a final Model S or Model X, the clock is ticking. After Q2 2026, these vehicles become history. Ordering within the next few months is the only way to own a brand-new version of what many consider the most important electric vehicles ever built. After that, the Model S and Model X become collector's items and used purchases—still great vehicles, but no longer part of Tesla's active lineup as noted by Business Insider.

The era of the Model S and Model X is ending. Tesla's next act—defined by autonomy, robotics, and mass-market innovation—is just beginning as reported by The Verge.

FAQ

What is the official discontinuation date for Tesla Model S and Model X?

Tesla will cease production of both the Model S and Model X at the end of Q2 2026, which is June 30, 2026. CEO Elon Musk made this announcement during the company's quarterly earnings call, giving customers approximately 4-6 months from the announcement to place final orders for new vehicles before production ends permanently as detailed by CNBC.

Will Tesla continue supporting existing Model S and Model X owners after production ends?

Yes, Tesla has explicitly committed to supporting all existing Model S and Model X owners indefinitely. The company will continue providing parts availability, software updates, warranty coverage, and service support for these vehicles as long as owners keep them on the road. This means current owners don't need to worry about stranded vehicles after production ends as noted by Business Insider.

Why is Tesla discontinuing these vehicles if they're still profitable?

Tesla is discontinuing the Model S and Model X to reallocate manufacturing capacity and engineering resources toward future strategic priorities, particularly autonomous driving technology and Optimus humanoid robot production. While both vehicles remain profitable, their profit margins are lower than mass-market models like the Model 3 and Model Y. More importantly, Musk views the future of Tesla's value creation as lying in autonomy and robotics rather than in traditional vehicle sales as reported by The Verge.

What will happen to the Fremont factory after Model S and Model X production ends?

The Fremont factory in California will transition to manufacturing Optimus humanoid robots after Q2 2026. The facility will retain approximately the same footprint and manufacturing capacity but will be reconfigured to support robot assembly and testing rather than vehicle manufacturing. Tesla plans to use the proven manufacturing infrastructure and workforce to scale Optimus production as noted by Electrek.

Should I buy a final Model S or Model X before production ends?

That depends on your priorities. If you want a brand-new vehicle with the latest technology and full warranty coverage, ordering before Q2 2026 is your only option—after that date, you'll need to purchase used vehicles. However, you should also consider whether the vehicle still meets your needs compared to newer competitors, whether you have access to Tesla service centers, and whether the vehicle's features justify the premium pricing compared to other available electric sedans and SUVs as detailed by CNBC.

How does this discontinuation affect used Model S and Model X values?

Historically, discontinuation of popular car models tends to support used pricing because the supply of new vehicles becomes fixed and eventually depletes as vehicles are retired from service. As the used market tightens, prices often firm up. Early Model S and Model X vehicles may eventually become collectible, similar to how discontinued performance cars often appreciate. However, factors like battery degradation, service availability, and changing technology could also pressure prices downward over time as noted by Business Insider.

What does this announcement tell us about Tesla's future vehicle strategy?

The discontinuation signals that Tesla is moving away from the premium sedan and SUV market to focus on mass-market vehicles (Model 3 and Model Y), autonomous driving technology, and new platforms like Optimus robotics. It suggests Tesla views the future of automotive profit as tied to scale, autonomous capabilities, and recurring revenue from services rather than from premium one-time vehicle sales. This represents a fundamental shift in how Tesla sees its future as a company as reported by The Verge.

Could Tesla bring back the Model S and Model X in the future?

While theoretically possible, Musk's language about an "honorable discharge" suggests this discontinuation is permanent. The manufacturing capacity is being repurposed for Optimus production, and Tesla's strategic focus is shifting elsewhere. A future revival would require Tesla to reverse its core strategic priorities, which seems unlikely given the company's commitment to autonomy and robotics. New entrants to the premium sedan and SUV market will likely fill any market gap left by Tesla's exit as noted by Electrek.

How does this compare to other automakers discontinuing products?

Tesla's approach is more transparent and deliberate than how legacy automakers typically handle discontinuations. Rather than quietly phasing out products, Tesla announced specific end dates, rationale, and transition plans. This gives customers clear decision-making windows and allows supply chain partners to adjust systematically. The openness is less disruptive than the gradual phase-outs common in traditional automotive as detailed by CNBC.

What happens to suppliers and manufacturing partners when Model S and Model X production ends?

Suppliers who specialized in Model S and Model X components will need to find alternative customers or adjust their business models. Tesla will work with suppliers to manage the transition, but companies dependent primarily on these product lines may face challenges. Conversely, suppliers in the robotics and autonomous driving sectors will see increased opportunities as Optimus production scales and Tesla focuses more engineering resources on autonomy technology as noted by Business Insider.

Key Takeaways

• Tesla discontinues Model S and Model X production in Q2 2026, ending 14 and 11 years of production respectively
• Strategic pivot focuses on autonomous driving technology and Optimus robotics as primary future revenue drivers
• Fremont factory reallocation signals Tesla's shift from premium vehicle manufacturing to next-generation technology platforms
• Competitive landscape changes dramatically since 2012 launch, with dozens of premium EV alternatives now available from legacy automakers
• Discontinuation improves manufacturing efficiency by consolidating around mass-market Model 3 and Model Y vehicles

Related Articles

• FBI Seizes RAMP: The Collapse of Ransomware's Last Stronghold [2025]
• Audi's Return to Analog Buttons: The Death of Touchscreen Dashboards [2025]
• Meta Reality Labs: From Metaverse Losses to AI Glasses Pivot [2025]
• Tesla's 2025 Revenue Decline: What Went Wrong [2025]
• Google Gemini Auto Browse in Chrome: The AI Agent Revolution [2025]
• Microsoft Teams Phishing Attacks: How Hackers Steal Email Credentials [2025]