Tesla Discontinues Model S and Model X: End of an Era | Taha Abbasi

Taha Abbasi reflects on Teslas announcement to discontinue the Model S and Model X, marking the end of an era for the vehicles that defined the modern electric car industry and proved EVs could be desirable, fast, and practical.

An Honorable Discharge

During the Q4 2025 earnings call, Elon Musk made an announcement that sent ripples through the automotive world: Tesla will cease production of the Model S and Model X by the end of Q2 2026. As Taha Abbasi sees it, this represents more than a product discontinuation — its the closing of a chapter in automotive history.

Musk described the decision as “an honorable discharge” for the two vehicles that essentially created the premium EV market. The 2012 Model S didnt just prove that electric vehicles could match internal combustion performance — it proved they could exceed it while being genuinely desirable.

By the Numbers: A Diminishing Role

The writing had been on the wall for years. In Q4 2025, combined sales of Teslas “Other Models” category (which includes the Model S, Model X, Cybertruck, and Semi) totaled just 11,642 units. Compare that to the 406,585 units for the Model 3 and Model Y combined — the flagship vehicles now represent just 2.8% of Teslas total vehicle sales.

Taha Abbasi notes that this isnt a failure story but rather a success story of Teslas broader mission. The Model S and X were always intended to fund the development of more affordable vehicles. That mission succeeded beyond anyones expectations.

The Real Reason: Optimus Needs the Space

The discontinuation isnt purely about sales figures. Elon Musk revealed that the floor space currently used to build the Model S and X at the Fremont factory will be converted to produce the Optimus humanoid robot.

This reallocation speaks volumes about Teslas strategic direction. The company is pivoting from pure automaker to AI and robotics company, and physical manufacturing space is a zero-sum game. Every square foot dedicated to low-volume luxury sedans is a square foot that cant produce high-volume robots.

A Legacy Worth Remembering

For Taha Abbasi, who has been testing and analyzing Tesla technology for years, the Model S deserves its place in automotive history books:

• 2012: Model S launches, earning MotorTrend Car of the Year
• 2015: “Insane Mode” and later “Ludicrous Mode” redefine performance expectations
• 2016: Autopilot begins transforming the driving experience
• 2019: Long Range Plus achieves over 400 miles of range
• 2021: Plaid version becomes the quickest production car ever made (0-60 in 1.99 seconds)
• 2025: Named one of Times top inventions of the past 25 years

The Model X brought its own innovations: falcon wing doors, a panoramic windshield extending into the roof, and the towing capability that made it practical for families who needed utility without sacrificing the EV experience.

What This Means for Current Owners

Tesla has committed to continuing support for existing Model S and X vehicles “for as long as people own them.” This includes service, parts, and software updates.

However, Taha Abbasi advises owners to be realistic about the long-term outlook:

• Parts availability: While Tesla commits to support, sourcing components for discontinued, lower-volume vehicles typically becomes more challenging over time
• Software updates: The Model S and X have historically lagged behind mainstream Teslas in receiving new features due to different hardware architectures. This gap will likely widen.
• Resale value: Classic cars can appreciate, but most discontinued vehicles see accelerated depreciation initially. The Model S Plaid may become a collectors item eventually, but dont count on it in the near term.

Was This a Last-Minute Decision?

The timing surprised many observers. Tesla released a refresh for the Model S and X just seven months ago, leading enthusiasts to believe the vehicles had a longer runway. The lack of major innovations in that refresh — no steer-by-wire, no 800V architecture, no V2L support — now makes more sense in hindsight.

Taha Abbasi suspects the decision crystallized when Tesla ran the numbers on Optimus production scaling. The Fremont factory has finite capacity, and the math simply worked out better for robots than for low-volume luxury EVs.

The Transition to an Autonomy-First Company

Teslas official statement linked the discontinuation explicitly to “shifting to an autonomous future.” This aligns with Musks increasingly vocal position that Teslas future value lies in autonomy and robotics, not in selling cars by the unit.

The Model 3 and Model Y — with their lower price points and higher volumes — are the vehicles that will carry Teslas autonomous vision forward. Every Model 3 and Y sold is another node in Teslas data collection network, another vehicle that will eventually become a robotaxi, another potential customer for Full Self-Driving subscriptions.

A Final Window for Enthusiasts

For those who have always wanted a Model S or X, the order window is closing. Production ceases entirely by the end of Q2 2026. These vehicles will likely become collectors items eventually — the original Tesla that proved the skeptics wrong and launched an industry.

As Taha Abbasi sees it: if you want to own a piece of automotive history, now is the time to act.

Conclusion: Evolution, Not Extinction

The discontinuation of the Model S and X isnt a sign of Teslas weakness — its a sign of its evolution. The company has moved beyond proving that EVs can be great. Now its focused on proving that autonomy can be ubiquitous and that robots can be practical.

The Model S proved EVs could be desirable. The Model 3 proved they could be affordable. What comes next will prove they can think for themselves.