Tesla has officially begun the process of phasing out the Model S and Model X, marking the end of an era for these iconic vehicles. This decision comes just months after Tesla announced that production of the Model S and Model X would cease in 2026.
The Model S and Model X have played a significant role in establishing Tesla as a leading automaker and a disruptor in the car industry. However, it is now time to wind down production of these flagship vehicles. Tesla’s Korean arm has set a firm deadline of March 31, 2026, for new orders of the Model S and Model X, after which only existing inventory will be available in South Korea.
CEO Elon Musk has described the discontinuation of the Model S and Model X as an “honorable discharge” for the two cars. The decision to phase out these models is part of Tesla’s strategic shift towards high-volume manufacturing of the Optimus humanoid robot, with a target production rate of up to one million units per year.
Sales of the Model S and Model X have declined in recent years, with the two models accounting for only 3 percent of Tesla’s global deliveries in 2025. Competition in the luxury EV segment has intensified, leading buyers to shift towards more affordable options like the Model 3 and Model Y. Despite their declining sales, the Model S and Model X still showcase advanced technology, including blistering acceleration, Full Self-Driving capability, and luxurious interiors.
With the Model S and Model X being phased out, Tesla’s focus now shifts to future products, particularly the Optimus robot. The company’s Fremont factory will continue to produce the refreshed Model 3 and Model Y, while expanding into robotics. Tesla has assured that the shift will not result in job losses and may even increase headcount as Optimus production ramps up.
For Tesla fans, the sunset of the Model S and Model X represents a bittersweet moment. The Model S and Model X have left a lasting impact on the automotive industry, setting new standards for luxury sedans and family haulers. Owners can expect continued software support and service for their vehicles in the years to come.
As Tesla looks towards the future, the phase-out of the Model S and Model X paves the way for the company’s strategic pivot towards autonomy, robotics, and higher-volume vehicles. While the end of an era is always a poignant moment, Tesla’s decision to sunset these iconic models signals the company’s commitment to innovation and progress in the ever-evolving automotive landscape.