Tesla will discontinue the Model S and Model X by the end of Q2 2026, according to CEO Elon Musk's announcement during the company's Q4 2025 earnings call. The decision marks the end of an era for Tesla's flagship vehicles, which were first introduced in 2012 and 2015 respectively.
The writing has been on the wall for years as sales have been declining steadily. In recent months, estimates suggest that Model S/X deliveries had dropped over 30% year-over-year, with actual numbers likely lower due to the inclusion of other models like Cybertruck and Tesla Semi in the overall sales figures.
Despite having a production capacity of 100,000 units per annum for these vehicles at its Fremont factory, Tesla has been running at a fraction of that capacity for years. The latest update to the Model S and X in July 2025 was seen as a mere refresh with minor changes and a significant price increase, which may have further contributed to their declining sales.
The Model S was the car that proved Tesla's viability, while the Model X followed with its distinctive falcon-wing doors and became one of the first all-electric SUVs. However, it seems that these models are no longer viable in the current market.
As a result, customers can expect to see these vehicles disappear from Tesla's lineup by the end of 2026.
The discontinuation of the Model S and X is not surprising given the decline in sales and increasing competition in the electric vehicle market. It highlights the need for manufacturers to continuously evaluate and adapt their product lines to remain relevant.
