Tesla has officially announced the discontinuation of its Model S and Model X vehicles, marking the end of an era for the company’s flagship sedan and SUV. This decision was confirmed earlier this quarter, with the company ceasing production of the two vehicles.
The phase-out of the Model S and Model X is evident in several recent moves by Tesla. One notable indication was the selling out of a paint color option for both vehicles. Additionally, the company has quietly removed the two models from its U.S. referral program, eliminating the $1,000 discount for new buyers. Existing Tesla owners purchasing these vehicles will now only receive a loyalty discount of $500.
In a further shift, new Cybertruck buyers using a referral code for Premium AWD or Cyberbeast configurations will no longer receive a $1,000 discount. Instead, both the referrer and the buyer will receive three months of Full Self-Driving (Supervised). The loyalty discount for Cybertruck purchases has also been reduced to $500, excluding the new Dual Motor AWD trim level.
These changes are part of Tesla’s broader strategy to optimize margins and promote the adoption of its autonomous driving software. With the company reallocating factory capacity towards other projects like the Optimus humanoid robot and next-generation vehicles, the discontinuation of the Model S and Model X aligns with Tesla’s future plans.
Industry observers view these recent developments as a clear sign of an “end-of-life” phase for the vehicles that once defined Tesla’s luxury segment. While some loyal customers express nostalgia and frustration over the changes, others are rushing to place orders to secure final discounts before they disappear completely.
Despite the impending end of production for the Model S and Model X, Tesla remains focused on efficiency and profitability. The company is reducing discounts on outgoing models, emphasizing FSD subscriptions, and prioritizing high-margin Cybertruck trims in response to increasing demand. Loyalists still have a limited opportunity to purchase a refreshed Plaid or Long Range model with remaining incentives, but it’s evident that Tesla’s lineup is evolving, signaling the conclusion of an era for the original flagships.