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Tesla is killing off the Model S and Model X
Tesla will cease production of the Model S sedan and Model X SUV, with final versions slated for next quarter, according to CEO Elon Musk. The decision aims to focus on future autonomous technologies and manufacturing the Optimus robots at the Fremont factory. Tesla plans to continue supporting existing owners of these models.
Key points
- Elon Musk announced the end of Model S and Model X production during the quarterly earnings call.
- Final versions of both vehicles will be produced next quarter.
- Tesla aims for a transition towards autonomous vehicle technologies.
- Existing owners of Model S and X will receive ongoing support.
- Production space will be repurposed for building Optimus robots.
- The Model S, launched in 2012, significantly contributed to popularizing electric vehicles.
- Competition has intensified from traditional car manufacturers and start-ups in the luxury EV market.
Why it matters
- The end of the Model S and X aligns with Tesla's strategy to focus on more affordable models like the Model 3 and Model Y.
- The shift reflects broader trends in the automotive industry toward electric and autonomous vehicles.
- Increased competition in the EV market includes new entrants like Rivian and established brands investing in electric technology.
The discontinuation of the Model S and Model X signifies Tesla's strategic shift toward future technologies, marking the end of an era while emphasizing support for current owners amidst rising EV competition.