Tesla Finally Reveals the Real Reasons Behind the Model S and Model X Cancellation

Added: 2026-05-28

[00:00:00]Tesla finally released the real reason of the Tesla Model S and Model X cancellation. Welcome back everyone.

[00:00:06]This is Armen Haram from torque news.com. I'm so glad to see you back here. Today we're looking at the massive announcement coming straight out of Tesla that makes the absolute end of an era for the electric vehicle world.

[00:00:18]Tesla has officially announced that they are completely winding down and cancelling production of their two original flagship vehicles, the Model S sedan and the Model X SUV. Many of you have heard that. Now, a lot of folks in the financial world were caught completely offguard by this. But if you look at the actual automotive engineering and the cold hard data, the real reasons make perfect business sense. Stay comfortably. I'm going to talk about that. During the recent episode of the Ride the Lightning podcast, Tesla's chief designer France von Hullhausen and vice president of engineering Lars Moravi set the record straight. The executives revealed that the decision to sunset the flagship vehicles, the Model S and Model X, was actually made over a year and a half ago. year and a half ago. The choice was driven not by popularity but by a combination of aging safety architecture and desperate need for new manufacturing space. I'll speak about those two in this report. First of all, let's talk architecture. The Model S launched all the way back in 2012 and the Model X followed in 2015. Tesla recently admitted that these older platforms represent their pre-autopilot thinking.

[00:01:41]Pre-autopilot thinking because they were engineered over a decade ago.

[00:01:45]Retrofitting them to fully comply with the latest vehicle safety standards and upcoming autonomous hardware requirements would take an incredible amount of complex engineering work. So Tesla faced a clear choice. Sink hundreds of millions of dollars into redesigning two aging structural platforms or redirect those resources somewhere else. They decided to walk away. The second big reason comes down to basic math. While early adopters of electric vehicles or early adopters of Tesla loved these cars, the Model S and Model X, the market has shifted heavily toward high volume, lowc cost vehicles like the Model 3 and Model Y. In fact, by the end of last year, the Model S and Model X combined accounted for only a tiny fraction of Tesla's total sales volume, essentially a rounding error on their balance sheet. It simply does not make financial sense to occupy massive amount of factory floor space for premium vehicles that very few few people are actually buying anymore. So what is happening to that valuable factory space at the Fremont factory in California? This is where the story takes a major turn. Instead of spending a fortune, a lot of money to overhaul a pair of slowselling luxury cars, Tesla is converting that exact production line into a manufacturing facility for their Optimus humanoid robots. Now, I'm not very I'm not at all in favor of humanoid robots, friends. But it's not about that. This what tesla Tesla is doing.

[00:03:27]CEO Alan M stated that the company is shifting heavily toward an autonomous future, meaning the era of the highriced human-driven luxury Tesla is officially over. They are clearing out the old machinery to build generalpurpose robotics and dedicated autonomous platforms like the Cyber Cap. So, the verdict, you have to give credit to the Tesla Model S and Model X for what they accomplished.

[00:03:56]They proved to the entire global auto industry that electric cars could be fast, desirable, and highly capable.

[00:04:06]They paved the way for every mass market EV on the road today. But in the manufacturing world, when a platform gets too old, too expensive, too update, uh too expensive to update and drops in sales, it gets retired. Tesla will continue to service the existing fleet of Model S and Model X vehicles out on the road. But as far as new ones rolling off the assembly line go when the current inventory is liquidated, they're gone for good. Friends, now I want to hear from you. What do you think about these things? Do you think Tesla is making the right move by cancelling their flagship luxury cars to focus on robotics or are they abandoning the core drivers who built the brand? I mean at some point they have to abandon it. I just showed you the math I just explained but I would still like to hear from you. Maybe you have something I missed. If you and also if you were in the market for a premium electric vehicle would this announcement by Tesla make you look at competitors like Lucid Air or Ravan vehicles. Let me know your thoughts in the comments section below.

[00:05:12]I'd like to hear from you. This is Armen Haram from torquenews.com. Please visit us also at torquenews.com for really interesting automotive stories and I look forward to reading your comments in the comment section below. And if you like this story, please give us thumbs up, share in social media. God bless you. I really uh like appreciate that.

[00:05:30]See you soon in our next report.