Tesla is ending production of the Model S sedan and Model X SUV, CEO Elon Musk announced Wednesday during the company’s quarterly earnings call.
The company will make the final versions of both electric vehicles next quarter, he said, adding that his company will offer support for existing Model S and Model X owners “for as long as people have the vehicles.”
“It’s time to basically bring the Model S and X programs to an end with an honorable discharge, because we’re really moving into a future that is based on autonomy,” he said. “So if you’re interested in buying a Model S and X, now would be the time to order it.”
The Model S and Model X are both built at the company’s Fremont factory. Once production ends, Tesla will will build Optimus robots in the same factory space in Fremont, California, according to Musk.
Tesla launched the Model S in 2012, and it is regarded as the first car that made electric vehicles widely appealing. The Model X was Tesla’s second major electric vehicle program.
Tesla always intended for its more affordable models — the Model 3 sedan and Model Y SUV — to greatly outsell their predecessors.
But sales of both models have flatlined in recent years, despite interior and exterior refreshes along the way. Tesla has faced increased competition in the luxury EV space from legacy automakers, as well as upstarts like Rivian and Lucid Motors.
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“So that is slightly sad, but it’s… it is time to bring the S and X programs to to an end,” Musk said.
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