Tesla Confirms Phase Out of Model S and Model X
Tesla has confirmed that it will stop making its Model S and Model X cars this year. Elon Musk made the announcement during a call with investors and analysts on Wall Street. Musk said the move was part of a bigger change in how the company works.
He said that production of the 2 models would stop completely next quarter. Tesla will keep fixing cars for people who already own them. The decision means a big change for the company’s line of cars.
Source: InsideEVs/Website
Model S and X Defined Tesla Early Growth Years
The Model S and Model X were very important to Tesla’s success in the car business. They were first introduced in 2012 and 2015, and they helped make electric cars more popular with regular people. Their success made people who were doubtful about electric-only car companies think again.
People loved the Model S and gave it great reviews. It frequently topped owner satisfaction rankings and demonstrated electric performance viability. The Model X came next, and while it got mixed reviews, it added to Tesla’s product line.
Strategic Shift Toward Robots and Autonomy Accelerates
Musk said that ending the 2 vehicle programs helps Tesla’s long-term goal of making cars that drive themselves. The company is putting more and more effort into humanoid robots and robotaxis. These areas are likely to shape the direction of Tesla’s future growth.
Musk said that the choice had a lot of emotional weight. He said that the end of the programs was a little sad but necessary. Tesla thinks that self-driving cars will be better than regular cars, so the change shows that.
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Fremont Factory to Be Converted for Robot Production
Tesla wants to change its Fremont, California factory so that it can make robots. The site used to make the Model S and Model X cars. It will now be used for Tesla’s planned Optimus humanoid robots.
You can’t buy Optimus robots yet. Tesla sees the factory conversion as an important 1st step toward increasing production. Instead of cars, manufacturing capabilities will be changed to work with robots.
Financial Results Show Pressure Alongside Transformation
Tesla’s latest quarterly financial results came out at the same time as the announcement. The company made more money than expected, but its sales were weak. Compared to the previous year, annual revenue fell by 3%.
Even though Tesla’s sales were down, its stock rose about 2% after hours. Investors seemed to like the clear strategy. The market’s reaction showed that people believed in Tesla’s long-term plans.
Competition and Politics Weigh on Vehicle Sales
Over the past year, Tesla’s car sales have had problems. More competition from Chinese and global carmakers gave consumers more options. Tesla’s dominance went down because of pricing pressure and feature parity.
Musk’s involvement in politics also changed how people felt about him. Some customers didn’t like that he was politically connected to the right. These things made people less interested in buying high-end Tesla models.
Legacy Models Give Way to Next Generation Priorities
Tesla has lowered the prices of the Model S and Model X in the past few years to boost sales. The reductions highlighted diminishing momentum for the older models. Market conditions no longer favored their growth.
Now, Tesla’s leaders put robotics, AI, and self-driving cars at the top of their list. Ending the S and X programs makes room for new technologies. This move marks the end of 1 phase of Tesla’s growth and the beginning of another.
