The crisis has been looming for weeks, but now the end is near. There are only a few hundred Tesla Model S and Model X vehicles left unsold. Tesla CEO Elon Musk confirmed in a post on X this week that custom orders for the Model S sedan and Model X SUV have ended. “Only a portion of the inventory remains,” he wrote.
Musk first announced Tesla’s plans to end production of the Model S and Model X back in January. And data helps explain why.
Sales of Tesla’s Model X and Model S have steadily declined over the years as they have been succeeded by the company’s higher-volume, cheaper models, the Model 3 and Model Y. Tesla does not separate S and X sales, instead combining them under “Other Models,” a category that now also includes the Cybertruck. Combined, these numbers show that S and
In other words, their death was inevitable. What we do next is a little more complicated.
Musk isn’t looking to fill the void left by the Model X and Model S with traditional EVs. He abandoned plans to produce a low-cost EV, which was expected to cost around $25,000. Instead, Musk is betting on Optimus, a robot that has yet to be mass-produced, and CyberCab, an all-electric, two-seater self-driving car that was first unveiled as a concept in 2024.
Tesla plans to build Optimus robots at its Fremont, Calif., factory once Model S and Model X production ends, but it’s unclear when that will happen once final orders are completed. Musk said Tesla will begin production of the CyberCab this month at its Austin, Texas, factory.
look back
The Model S and X EVs have retreated to the more affordable Model 3 and Model Y. But their debut and first sales marked two key moments in Tesla’s colorful and often volatile history. Model S was released in 2012 as the first mass-produced EV. Their popularity has not only changed the way consumers view EVs, but also brought attention to traditional automakers who have long downplayed the value of electric vehicles.
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The Model X followed in fall 2015 and was famously described by Musk as the Faberge egg of EVs.
“I think we were more into the X,” Musk said at a September 2015 press conference, which this reporter was also present, just an hour before Tesla’s Model X delivery event began. “I don’t know if anyone should build this car.”
Model X was often delayed and initially criticized for its complexity. But it ultimately introduced the company to a new market: women.
The Model X raised Tesla’s profile and set the stage for the company’s next big move: affordable, mass-produced EVs. The Model 3 had a rocky start, but ultimately propelled Tesla into the mainstream. The Model Y solidified its position and helped Tesla widen its lead as the world’s top-selling EV manufacturer until China’s BYD delivered 2.26 million EVs in 2025, taking over the top spot in global EV sales.
Tesla continues to sell thousands of Model 3s and Model Ys, but its growth has stalled and even reversed. In January, the company reported that car sales in 2025 will decline for the second consecutive year to 1.69 million units. According to first-quarter 2026 numbers reported on April 2, efforts to increase sales of the cheaper versions of the Model 3 and Model Y launched in October and the Model Y have had some success.
Tesla delivered 358,023 EVs globally in the first three months of this year, about 6% more than the same period in 2025 and the company’s worst quarter in years. This number was lower than the approximately 368,000 expected by analysts.
But don’t worry about that. In Musk’s view, he is well compensated, but as he has previously stated, Tesla is neither a car manufacturer nor a sustainable energy company. Tesla is an AI company, and his new strategy is fully committed to that mission.
Cyber cab risks
The Optimus robot is part of the Tesla AI effort. But perhaps the company that best embodies the company’s AI-first campaign and exposes its risks is Cybercab.
The Cybercab is designed to be used as a self-driving car without traditional controls such as a steering wheel or pedals. This means that once launched, no initial backup by a human safety operator is required.
The first CyberCabs rolled off the Tesla factory assembly line in February and are expected to go into mass production this month. However, as with much of Tesla’s history, that date can shift.
Unlike Tesla’s previous vehicles, its production isn’t without its challenges (who can forget the Model 3’s production hell?). Instead, they face significant regulatory hurdles before they can be put to practical use. Federal motor vehicle safety standards set requirements for vehicles, such as having a steering wheel and pedals. There is no evidence that Tesla has applied for an exemption, according to the Federal Register and National Highway Traffic Safety Administration public files.
The vehicles will also utilize Tesla’s fully self-driving software to navigate public roads and safely transport passengers to and from their destinations. Despite FSD improvements and limited driverless robotaxis testing in Austin, Tesla has yet to demonstrate that its software can work reliably at scale.
And the work requires more than technical mastery. Robotaxis are also difficult to operate. Additionally, states like California require permits to deploy self-driving cars and charge for rides.
Zoox, the self-driving car company owned by Jeff Bezos’ Amazon, may end up paving the way for Tesla and its CyberCab. Zoox received a waiver from the National Highway Traffic Safety Administration that allows it to demonstrate its custom robotaxis, which have no pedals or steering wheel, on public roads. Zoox is currently undergoing a public process to extend its exemption to commercial operations.
At an earnings call in January, Musk tried to convince shareholders why the risk was worth taking.
“In the future, the majority of miles driven will be autonomous,” Musk said at the time, later saying the CyberCab is highly optimized to minimize cost per mile and achieve higher duty cycles. “I think it’s probably less than that. This is just a guess, but someone will actually be driving the car in the future probably less than 5% of the miles, and probably less than 1%.”
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