A Graceful Exit for Two Icons
Why the Change?
A combination of falling sales, ageing platforms, and an aggressive pivot toward artificial intelligence appears to be behind the decision.
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Sales had been declining for years
Tesla stopped reporting standalone sales figures for the S and X in 2023, grouping them under “other models”. Industry analysts estimated global deliveries had dropped to below 50,000 units by late 2024, despite Tesla maintaining an annual production capacity of 100,000 for the pair. The vehicles had been running far below that threshold for some time.
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The market has shifted
Tesla’s more affordable Model 3 and Model Y now dominate its output, together accounting for 97% of the company’s 1.59 million deliveries last year. In contrast, the premium S and X represent a shrinking niche in an increasingly competitive global EV landscape.
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Tesla is repositioning itself
The company’s strategy is now undergoing a radical transformation—from what it calls a “hardware‑centric business” to a “physical AI company”. This includes a major push towards robotics, autonomous taxis, and its humanoid robot platform, Optimus. Tesla plans to convert its Fremont factory lines, currently used for the S and X, to build these next‑generation robots.
Optimus Takes Centre Stage
Musk has repeatedly said that Optimus could become Tesla’s most valuable product, going as far as calling it an “infinite money glitch”, predicting it could one day be responsible for 80% of Tesla’s valuation. Fremont’s transition from car production to humanoid robot manufacturing is a clear signal that Tesla wants to lead the emerging physical AI sector.
While optimism is high within Tesla, some experts remain sceptical. MIT roboticist Rodney Brooks has questioned whether true general‑purpose humanoid helpers will be technologically or economically viable for decades.
What this means for UK drivers
For British motorists, the shift means Tesla’s UK line‑up will soon comprise only the Model 3 and Model Y, until the long‑rumoured new Roadster is revealed in April. Second‑hand values for the S and X may rise in the short term, especially for well‑specced, low‑mileage examples, given their imminent rarity.
Tesla has reassured current owners that support for both models will continue “for as long as people have the vehicles”, so there’s no need for existing drivers to panic.
A bittersweet farewell
The retirement of the Model S and Model X is undeniably the end of an era. These cars weren’t just products; they were statements. They helped transform Tesla from a Silicon Valley curiosity into one of the world’s most influential carmakers.
But markets change, technology moves on, and Tesla believes its future lies not just in building cars, but in reshaping how humans and machines coexist.
As the brand looks towards a world of autonomous systems and humanoid robots, the S and X will be remembered for what they were: bold, pioneering, and foundational to everything Tesla has become.