The electric vehicle revolution is almost over as Tesla is getting set to end the production of two of its most popular cars. In the second quarter of 2026, production of the Model S luxury sedan and Model X luxury SUV will be discontinued, CEO Elon Musk wrote on Twitter. The move marks a significant pivot in the Austin, Texas-headquartered automaker’s strategy, where it’s increasingly focused on autonomous technology, artificial intelligence and robotics. The transition marks the end of two vehicle programs, and is important to longtime Tesla fans and potentially buyers. It represents a definite shift from the company’s previous luxury-car days to autonomous mobility.
Tesla is also urging those who are interested in ordering a last-ditch new Model S or Model X to make their move soon. As production starts to slow down, the remaining cars are becoming harder to come by, said Musk, as there are only still a few hundred in the world’s inventory. The announcement marks the definitive end of a long evolution of the flagship models, with years of changes, engineering modifications, and competition in the high dollar EV segment. Current owners will have access to customer support for the foreseeable future, but after the models stop being produced, they will soon join the history books instead of being offered as a new vehicle in the lineup.
The retirement is closely connected to Tesla’s changing priorities. In a press conference with investors, Musk said the Fremont, California production facility, where the Model S and Model X vehicles are currently built, will be repurposed for the production of Optimus humanoid robots in the future, in a company he believes will be focused on autonomy. Extending the programs “has emotional impact,” but is “an important part of Tesla’s strategy,” acknowledged Musk. He said the company plans to have autonomous cars as part of its future product line, except for the next generation Roadster, underscoring the shift in the company’s strategy.
1. Model S Began Tesla’s Luxury EV Era
The Model S was instrumental in reshaping the perception of EVs held by consumers. The sedan was introduced in 2012 as Tesla’s first “ground up” design, and the base price was $57,400. The floor-mounted battery pack contributed to a combination which was unusual for an electric car for the time: interior space, handling and performance. Tesla already had over 10,000 reservations by the time it began customer deliveries in June 2012, indicating that it had a lot of interest in a luxury EV from a relatively young car company.
Key Milestones and Features:
- Launched as Tesla’s first ground-up design
- Starting price reached $57,400
- Collected over 10,000 early reservations
- Won MotorTrend’s 2013 Car of the Year
- Introduced Ludicrous Mode performance
The sedan immediately gained popularity with car men and women. Its functionality challenged the notion that EVs had to sacrifice driving excitement for efficiency. The Model S, however, offered up the electric power as something that might be capable of delivering substantial acceleration, good road manners, and everyday convenience in a luxury version.
Tesla has been continuously working on improving the Model S since it was introduced. As the EV market grew, the sedan has been competitive thanks to hardware improvements, software updates and performance upgrades. Battery types expanded and a significant exterior and interior facelift in 2021 further reinforced the model in a rapidly growing luxury EV market.
2. Model X Added Family-Focused Utility
The Model S was followed by the Model X, previewed in 2012, entered in customer deliveries in 2015. The SUV marked the introduction of electric technology in a bigger, family-size package without sacrificing high performance. It was three rows, making it a practical choice, and the unique falcon-wing rear doors distinguished it from traditional SUVs.
Distinctive Model X Characteristics:
- Introduced three-row electric utility
- Featured distinctive falcon-wing doors
- Faced complex manufacturing challenges
- Received a major refresh in 2021
- Remained part of Tesla’s luxury lineup
Those doors turned out to be one of the most challenging engineering aspects of the car. Their folding mechanism was very complex which made manufacturing difficult and thus the Model X was known as an unusual engineering complexity. The SUV is so difficult to make and so packed with features that it was described by Musk as the “Fabergé of cars.
But those difficulties did not deter the Model X from building a loyal following and staying relevant in the luxury sector for Tesla. Alongside the Model S, it proved that electric vehicles could match the performance of conventional internal-combustion vehicles and it did so with quick acceleration, large interior, software updates, and Supercharging.
3. Mass-Market Models Changed Tesla’s Priorities
While the Model S and Model X built Tesla’s brand, their goal was to go beyond cars and into a more ambitious market. This led to a dramatic shift in the production and delivery numbers of Tesla when the more affordable Model 3 sedan and Model Y crossover entered the picture. These models were created for a much wider customer base, and soon were to become much more significant to the overall vehicle business.
Shift Toward Higher-Volume Vehicles:
- Model 3 expanded Tesla’s customer base
- Model Y increased overall production volume
- Flagship models became smaller-volume products
- Luxury vehicles lost manufacturing priority
- Tesla increasingly pursued larger-scale production
In the period where Model 3 and Model Y production ramped up, the flagship cars had a diminishing percentage of the total deliveries. The Model S and Model X also found their niche for high-end customers, though their sales were modest and didn’t play a key role in the company’s production plans. This shift was first recognized by MusK in 2019 when he said that their value to the company’s future has reduced.
The retirement is not a quick shift in strategy, but rather a continuation of Tesla’s previous approach. The company slowly shifted from demonstrating that premium EVs could hold their own against gasoline-powered luxury cars to scaling up production of vehicles. As autonomous technology and robotics gained importance, it became more and more challenging to justify the specialised production lines used for low-volume luxury models.
4. Autonomous Technology Drives The Transition
Musk has been making the connection between the end of the Model S and Model X and Tesla’s push for autonomy many times before. In an investor conference call, he talked about the two programs coming to an end as a part of a wider shift toward autonomous-driving-centric vehicles. The move brings artificial intelligence and self-driving even more into the picture for the future of Tesla products.
Autonomy-Driven Strategic Changes:
- Tesla is increasing its autonomy focus
- AI is becoming strategically important
- Fremont production space will be repurposed
- Optimus robots may use factory capacity
- Existing owners will continue receiving support
The manufacturing implications are also very notable. Tesla will take some factory floorspace in Fremont that it has dedicated to Model S and Model X to reuse. That is the area where it is expected Tesla will be able to make Optimus humanoid robots, reflecting the company’s growing focus on manufacturing other things beyond cars.
Additionally, Tesla has written that it will continue to offer support to current owners of the Model S and Model X vehicles “until the day they stop using them.” Once production stops the vehicles don’t necessarily vanish off the street. As Tesla shifts its focus towards autonomous cars, robotics and technologies, thousands of existing examples will continue to be used.
5. Sales Trends Highlight A Changing Market
The sales results from last year’s quarter highlight the reasons for the diminishing importance of the Model S and Model X in Tesla’s business. The figures for the two cars are combined in Tesla’s quarterly sales reports and are a good number for premium vehicles, but far lower than the company’s high-volume Model Y.
Market Trends Affecting Tesla:
- Combined 2025 sales reached 53,900
- Model Y remains far higher volume
- Tesla produced 408,386 vehicles in Q1
- Deliveries reached 358,023 vehicles
- Luxury EV competition continues expanding
Tesla’s overall delivery statistics also reflect the changing nature of its car business. The company sold 358,023 vehicles during the first quarter of 2026, while it delivered 408,386. Deliveries also decreased in 2025 compared to 2024 in the U.S.
Market forces have added to the pressure. Tesla highlighted the uncertainty regarding trade and tariff, fiscal policy, and consumers were having greater access to more EV options from traditional and newer companies. The Lucid Air, Porsche Taycan, Rivian R1S, BMW i7 and Mercedes EQS have added to the competition.
6. Final Signature Editions Create A Collectible Chapter
Tesla decided to celebrate the two flagship models with a special send-off with limited Signature Edition cars. The company said there is a production run of 250 Model S examples and 100 Model X examples, making a notably small final production run. The car price was set at $159,420, that paired with some special touches to the styling was designed to make the last of them stand out from the production vehicles.
Signature Edition Highlights:
- Limited Model S production of 250
- Limited Model X production of 100
- Special Garnet Red exterior finish
- Gold Tesla badges and numbered plates
- Exclusive interior and ownership benefits
Garnet Red paint, gold Tesla badges, and the uniqueness of the dashboard plates with a number on it were part of the Signature Edition models. The interior featured a white colour palette with gold piping and Alcantara accents, lending the vehicles a more luxurious look.
The Signature Edition package also featured extra benefits for the owner. Lifetime Supercharging, Full Self-Driving (Supervised), four years of Premium Service and Premium Connectivity were all provided to buyers. There was also a one-year no-resale clause and the right of first refusal for Tesla.
7. Referral Changes Reflect Tesla’s New Strategy
Tesla also retooled up its U.S. referral programme during the switch to the Model S and Model X. The two flagship models have been pulled from the referral program, putting an end to a $1,000 price discount that used to be offered to new buyers who referred friends. Renewed Tesla owners also had their loyalty reduced from $1,000 to $500.
Changes to Tesla’s Referral Program:
- Model S referrals were discontinued
- Model X referrals were discontinued
- Loyalty discount dropped to $500
- Cybertruck incentives shifted toward software
- Full Self-Driving became a stronger incentive
Different incentives were offered for other Tesla models. The former $1000 cash discount on Cybertruck Premium AWD / Cyberbeast was removed and replaced by 3 months of free Full Self-Driving (Supervised).
The strategy is part of Tesla’s larger plans to boost software involvement and create a sustainable revenue stream. Temporary access to Full Self-Driving could give customers an opportunity to become familiar with Tesla’s software and encourage them to avoid cash discounts. The modifications indicate that Tesla’s business will become more and more software/autonomous driving-driven in the future.
8. Enthusiasts Are Watching The Final Inventory
Tesla owners and enthusiasts are feeling both a sense of nostalgia and urgency at the end of the production. Musk’s assertion that there were “only a few hundred” new Model S and Model X vehicles left worldwide prompted prospective buyers to take a closer look at what was available. Long time customers get last chance to buy a production in the very last window.
Why Enthusiasts Are Paying Attention:
- Final inventory is becoming limited
- Owners are sharing longtime memories
- Buyers are tracking remaining allocations
- Retirement marks a major Tesla era
- Final deliveries carry historical significance
That emotional bond has been seen in social media conversations. Existing owners have been reminiscing about their vehicles and potential customers have been following up on the last few cars building. The retirement marks the end of an era in which high-priced plug-in vehicles helped to define the very nature of Tesla.
The Signature Edition’s last delivery day marked another symbolic milestone in the transition. The company announced on May 12th, 2019, that it will hold an exclusive event at its Fremont factory the first week of May 2026 to welcome a small group of customers for what Tesla calls the first delivery in the last week of Model S and Model X.
9. Used Values Could Gain New Interest
Of course, as production ends, so does the focus of interest move into the used market. Obviously, with the discontinuation of the vehicles, the prices are not going to go up, but with limited production, it can sometimes give rise to interest in the vehicles with distinctive histories and specifications, the Kelly Blue Book valuation data estimates the average used price at around $30,310 for the Model S and $43,477 for the Model X.
Factors That Could Affect Used Values:
- Discontinued status may attract collectors
- Plaid versions offer added performance appeal
- Late-model examples may attract buyers
- Mileage will influence long-term desirability
- Condition and service history remain important
Some may be more discussed than normal examples. The performance-focused Model S Plaid and Model X Plaid models offer blistering performance and an ever-vanishing badge in Tesla’s once-dominant lineup. The late-model ’25 and ‘26 vehicles may appeal to newer tech fans as well.
More than the production shutdown will be needed to provide value in the long-term. Vehicles that may be desirable will vary based on mileage, configuration, condition, documented service history, and maintenance. As the used inventory evolves, low mileage options with amenities remaining in good condition may stand out.
10. The Flagships Leave A Lasting Legacy
Even after the lines have ended, the Model S and Model X will be a significant part of Tesla’s legacy. The Model S proved that an electric car could be luxuriously equipped and have the ability to travel long distances, get off the grid with strong acceleration and be a reasonable daily driving option. The success helped to redefine an electric car image.
Legacy Of Tesla’s Flagship Models:
- Model S reshaped luxury EV expectations
- Model X expanded electric SUV possibilities
- Supercharger integration became increasingly important
- Software updates became part of ownership
- Both models established Tesla’s premium identity
The Model X added that argument to the family SUV category. Three rows, unique doors, considerable performance and a technology-packed design demonstrated that electric cars could be both functional and technologically unique and premium. It was part of the mix that helped launch Supercharger integration, improvements through software upgrades, and over-the-air updates, as well as the Model S.
Tesla is now shifting factory capacity and engineering manpower and emphasis to autonomous vehicles, autonomous taxis, artificial intelligence, and humanoid robotics. The future holds so many possibilities and opportunities to be very different to the period that created the Model S and Model X, but their influence is apparent. They leave behind one story, and open up another for Tesla.
