technology
Tesla Ends Production of Model S and Model X Vehicles Amid Inventory Reduction
Tesla has ceased production of its Model S and Model X electric vehicles, leaving only a few hundred units in inventory. CEO Elon Musk announced the shift to focus on autonomous technology and robot production. The decision comes as Tesla reports declining sales and excess production in early 2026.
Apr 9, 1:22 PM·2m read1 source
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Tesla Inc. has ended production of its Model S luxury electric sedans and Model X luxury electric SUVs. The company stated that only a few hundred of these vehicles remain in inventory. CEO Elon Musk posted on social media on April 8 that buyers interested in new units should order soon.
Musk explained the decision during Tesla's January 28 earnings call with investors. He said the company plans to repurpose space in its Fremont, California, factory, currently used for Model S and X production, to build Optimus robots. This move aligns with Tesla's focus on autonomy.
“I think it's time to bring the Model S and X to an end, with an honorable discharge," Musk said on the January call with investors. " Tesla launched the Model S in 2013 and the Model X in 2015. Both models were commercially successful initially but have been overtaken in sales by the Model 3 and Model Y in recent years.”
The company is eliminating these lower-selling models to prioritize autonomous vehicles, with the exception of the next-generation Roadster.
produced 408,386 vehicles globally in the first three months of 2026, according to a company report released on April 2.
The company sold 358,023 vehicles during that period, resulting in 50,363 unsold units. In the United States, Tesla sold 589,160 vehicles in 2025, a 7% decrease from 633,762 in 2024. S. 6% of total auto sales in 2025, per the Alliance for Automotive Innovation.
Tesla attributed its 2025 sales challenges to uncertainties from shifting trade, tariff, and fiscal policies. The company also faces competition from other manufacturers introducing new electric models, while some automakers have reduced EV production due to demand fluctuations and the end of federal support.
