Tesla officially ended production of the Model S and Model X electric vehicles. The company will sell the final manufactured units to a select group of its most dedicated customers.
This strategic pivot reallocates resources toward newer, higher-volume models and future projects. The move shifts Tesla's primary focus to mass-market segments currently served by the Model 3 and Model Y.
The Model S established the global viability of premium electric cars, while the Model X expanded the brand into the SUV segment. Both vehicles served as flagship products for over a decade.
Analysts expect the production halt to streamline manufacturing operations. This change frees up capital for innovation in battery technology and autonomous driving systems.