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Tesla Discontinues Model S and X Production, Elon Musk Announces 'Honorable Discharge'

Elon Musk has confirmed Tesla has stopped production of the Model S sedan and Model X SUV, ending production of the vehicles that helped establish Tesla as an EV powerhouse, with only limited inventory remaining for sale.

Key Points

  • Tesla has stopped production of Model S and Model X, only inventory units remain
  • Model S launched in 2012, Model X in 2015, both were foundational to Tesla's success
  • Models now represent tiny fraction of Tesla sales, dominated by Model 3 and Model Y
  • Production space being freed for Optimus humanoid robot manufacturing

Full Details

Tesla has officially discontinued production of the Model S and Model X, marking the end of an era for the vehicles that helped establish the company as an EV powerhouse. Elon Musk announced on April 1, 2026, that Tesla had stopped making new production units of its longest-serving electric vehicles, with only a few inventory units remaining for sale. The Model S launched in 2012 as Tesla's first premium electric sedan, followed by the Model X SUV in 2015, and both played critical roles in bringing electric vehicles into the mainstream and establishing Tesla's reputation for innovation. However, these luxury models now represent only a tiny fraction of Tesla's total sales, dominated by the more affordable Model 3 and Model Y. In January 2026, Musk announced the two models would receive an 'honorable discharge' to free up factory space for production of the Optimus humanoid robot, signaling Tesla's strategic shift toward robotics and away from traditional automotive segments.

Why It Matters

The discontinuation marks a strategic pivot for Tesla from its luxury roots toward mass-market vehicles and new frontiers like robotics, potentially leaving a gap in the high-end EV market for competitors like Porsche, Lucid, and Mercedes to exploit.

Sourcebusinessinsider.com

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