Tesla Quietly Removes Model S and Model X from US Referral Program as Phase-Out Continues | Taha Abbasi

Tesla has taken another decisive step toward phasing out its flagship Model S sedan and Model X SUV by quietly removing both vehicles from the US referral program. Taha Abbasi examines what this latest move means for current owners, prospective buyers, and Tesla’s broader product strategy as it shifts focus toward newer platforms.

The Referral Program Removal: What Happened

Earlier this week, Tesla updated its US referral and loyalty programs, and the Model S and Model X were conspicuously absent from the eligible vehicle list. Previously, existing Tesla owners could share referral codes that offered benefits on any new Tesla purchase, including the Model S and Model X. Now, referral rewards are limited to the Model 3, Model Y, Cybertruck, and upcoming vehicles.

This change follows a series of signals that Tesla is winding down production of its two oldest vehicle lines. The company confirmed earlier this quarter that the Model S and Model X would no longer be produced, though it has not provided a specific end date. Inventory of both vehicles has been dwindling, and some configurations are already unavailable for new orders.

The referral program removal is significant because it eliminates one of the incentive mechanisms that could drive remaining sales. Without referral credits or bonuses, there is less reason for existing Tesla owners to recommend the Model S or Model X to friends and family. It is a quiet but clear signal that Tesla is directing customer attention toward its current and future product lineup.

Why Tesla Is Moving On

The decision to phase out the Model S and Model X makes strategic sense for several reasons. Both vehicles are built on Tesla’s original platform architecture, which dates back to the early 2010s. While both have received significant updates over the years, including the controversial yoke steering wheel and refreshed interiors, the underlying platform is fundamentally older than the platforms underpinning the Model 3 and Model Y.

Manufacturing the Model S and Model X is more expensive on a per-unit basis than building the Model 3 or Model Y. The older platform requires different production processes, different components, and different assembly line configurations. As Tesla focuses on maximizing production efficiency at its factories, maintaining a low-volume luxury line on an older platform becomes an increasingly difficult justification.

Taha Abbasi frames this as a natural evolution. “Every automaker eventually retires its older platforms,” Abbasi explains. “The Model S launched in 2012. The Model X followed in 2015. These vehicles were groundbreaking in their time, but Tesla’s engineering resources are better spent on the next generation of vehicles, including the Cybercab, the next-generation Roadster, and the affordable compact vehicle.”

What This Means for Current Owners

For existing Model S and Model X owners, the phase-out raises questions about long-term support, parts availability, and resale value. Tesla has not indicated any plans to discontinue service or parts support for these vehicles, and given the company’s over-the-air update capabilities, software support should continue for the foreseeable future.

However, as production ends and the vehicles become rarer, some owners may see their cars appreciate in value, particularly for sought-after configurations. The original Model S Plaid, with its record-setting acceleration and iconic design, could become a collector’s item in the electric vehicle world. Similarly, the Model X with its distinctive falcon-wing doors occupies a unique position that no other vehicle replicates.

Resale value dynamics will depend on how quickly Tesla fills the premium segment gap left by the Model S and Model X. If the next-generation Roadster arrives soon and satisfies the appetite for a high-end Tesla, demand for used Model S and Model X vehicles may soften. If there is a gap in Tesla’s premium lineup, used examples could command strong prices.

The Premium Segment Gap

One of the most interesting questions raised by the Model S and Model X phase-out is how Tesla plans to address the premium segment of the market. The Model S was Tesla’s luxury sedan, competing with the BMW 7 Series, Mercedes S-Class, and Porsche Taycan. The Model X competed with luxury SUVs from the same brands. Without replacements, Tesla temporarily cedes this market to competitors.

The next-generation Roadster, which has been in development for years, will partially fill this gap. Positioned as an ultra-high-performance sports car, the Roadster will compete in a different segment than the Model S sedan, but it will provide Tesla with a halo vehicle that demonstrates the company’s engineering capabilities.

Whether Tesla will eventually launch a new premium sedan or SUV on a next-generation platform remains an open question. Elon Musk has been focused on mass-market vehicles and the robotaxi platform, suggesting that the luxury segment may not be a near-term priority. This creates an opportunity for competitors like Mercedes, BMW, and Porsche to attract buyers who want a premium electric vehicle without waiting for Tesla’s next move.

Taha Abbasi sees this as a calculated trade-off. “Tesla is choosing volume and efficiency over luxury segment coverage,” Abbasi observes. “The Model 3 and Model Y generate far more revenue and profit per factory hour than the Model S and Model X ever could. From a business perspective, the decision to focus on what sells in volume makes perfect sense, even if it means losing some high-end customers to competitors.”

The End of an Era

The Model S deserves recognition for what it accomplished. When it launched in 2012, it proved that electric vehicles could be desirable, high-performance, and practical for daily driving. It won numerous awards, shattered acceleration records, and forced the entire automotive industry to take electric vehicles seriously. Without the Model S, the current EV revolution might look very different.

The Model X, despite its complexity and early production challenges, proved that electric SUVs could work. Its falcon-wing doors became an iconic design element, and its combination of three-row seating, all-wheel drive, and strong range made it a practical choice for families who wanted to go electric without compromising on space or capability.

Looking Forward

The removal of Model S and Model X from the referral program is one of the final steps in a phase-out process that has been underway for months. For prospective buyers, the window to purchase a new Model S or Model X is closing. Once current inventory is depleted, these vehicles will only be available on the used market.

Taha Abbasi concludes with a reflection on Tesla’s evolution. “Tesla started as a luxury car company and became a mass-market automaker,” Abbasi states. “The Model S and Model X were the bridge between those two identities. Retiring them is bittersweet, but it clears the path for what comes next. And if Tesla’s track record is any indication, what comes next will be worth the wait.”

For the automotive industry, the phase-out is a reminder that even revolutionary products have a lifespan. The vehicles that replaced horses with horsepower eventually got replaced themselves. The Model S and Model X replaced combustion engines with electric motors and proved that the future was electric. Their successor vehicles will build on that legacy in ways we are only beginning to imagine.

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About the Author: Taha Abbasi is a technology executive, CTO, and applied frontier tech builder. Read more on Grokpedia | YouTube: The Brown Cowboy | tahaabbasi.com