Tesla (TSLA) has officially begun the phaseout of customer deliveries for its renowned Model S luxury electric sedan and Model X luxury electric SUV. The company announced on its official South Korean blog that March 31st would mark the final date for placing orders for these vehicles.
This move in South Korea is the first of its kind, with Tesla planning to discontinue production of the Model S and Model X electric vehicles by the second quarter of 2026, as announced by CEO Elon Musk during the Q4 2025 Earnings Call. The company is expected to set order deadlines for other countries in the coming weeks as the second quarter approaches, with the goal of depleting existing inventory of the Model S and Model X before halting new orders.
The decision to discontinue these models comes as a result of disappointing sales volumes for both the Model S and Model X over recent quarters. In response, Tesla has introduced the new Model Y L, a long wheelbase variant of the Model Y that can accommodate six passengers. Initially launched in China, the Model Y L is now expanding to markets like Australia and New Zealand, with plans to reach South Korea in the near future.
While the Model Y L is poised to take over the role of the Model X SUV, there is currently no replacement in sight for the Model S sedan. Tesla intends to repurpose the assembly space for the Model S and X at its Fremont factory to produce Tesla’s humanoid robot Optimus later this year.
Interestingly, Tesla’s Model S and Model X electric cars are priced lower in South Korea compared to the United States, where they are manufactured. For instance, the base Model S AWD in South Korea costs around KRW 125,000,000, equivalent to $83,266 in US Dollars, whereas the same vehicle is priced at $94,990 in the US. The top-end Model S Plaid in South Korea is priced at KRW 131,000,000, approximately $87,260 in USD, compared to $109,990 in the US.
Recent government subsidies in South Korea have further reduced Tesla EV prices, making them more affordable for consumers. As Tesla continues to evolve its lineup and production facilities, customers can expect changes in pricing and availability in the future.
In conclusion, Tesla’s decision to phase out the Model S and Model X in South Korea is part of a broader strategy to streamline its offerings and focus on newer models like the Model Y L. With ongoing developments in the electric vehicle market, Tesla remains at the forefront of innovation and sustainability. Stay tuned for more updates on Tesla’s latest developments and announcements.