An extraordinary chapter in automotive history has officially drawn to a close. Tesla has ceased production of its pioneering Model S sedan and Model X SUV at its Fremont, California factory, bringing an end to a spectacular 14-year run that fundamentally forced the global auto industry to embrace electrification.
The decision marks a massive strategic pivot for the company. While the Model S (introduced in 2012) and the Model X (introduced in 2015) successfully established Tesla as a premium powerhouse, their sales had recently dropped to a mere fraction of the company's output. In 2025, Tesla sold just 50,850 units of these flagship models combined with the Cybertruck—paling in comparison to the 1.6 million vehicles sold across the mass-market Model 3 and Model Y lines. Instead of maintaining low-volume premium car lines, Tesla plans to completely retool the vacated factory space to mass-produce its third-generation Optimus humanoid robot, News.Az reports, citing Modern Digital.
To honor the legacy of its original trailblazers, Tesla is bowing out with a highly exclusive Signature Series limited to just 350 units (250 Model S Plaids and 100 Model X Plaids). Priced at $159,420, these invite-only collector's pieces feature a unique Garnet Red paint finish, gold accents, and a white Alcantara interior. The very last standard Model S to roll off the assembly line—a sleek black unit signed by the entire factory crew—will be preserved as a historic museum piece.
The departure leaves Tesla’s high-end lineup temporarily empty as fans await the heavily delayed next-generation Roadster. Meanwhile, rumors surrounding a highly anticipated, affordable $25,000 "Model 2" continue to fluctuate between cancellation and delay, leaving the Model 3 and Model Y to carry the brand securely into its next era.
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