The final days of the Tesla Model X and S are here. All bets are on the Cybercab.

Tesla is poised to end production of its Model S and Model X vehicles due to a significant decline in sales, which have shifted towards more affordable options like the Model 3 and Model Y. CEO Elon Musk confirmed that only a few hundred units remain unsold, marking the decline of these once-popular models that helped reshape consumer perceptions of electric vehicles since their launches in 2012 and 2015. Sales peaked in 2017 but have since dropped to just 50,850 units in 2025. As Tesla pivots away from these traditional electric vehicles, it is focusing on the development of the Cybercab, an autonomous two-seater vehicle designed without traditional controls. This shift towards AI-centric operations raises safety and regulatory concerns, particularly as the Cybercab is intended to operate without a human safety operator. Complications arise from federal safety standards requiring steering wheels and pedals, which Tesla has not sought exemptions for. While Musk promotes the Cybercab as a revolutionary advancement in autonomous travel, the lack of proven safety and regulatory compliance highlights the risks of rapidly advancing AI technology without adequate safeguards.

Why This Matters

This article highlights the decline of Tesla's flagship models, which raises concerns about the company's future direction and the impact on the electric vehicle market. Understanding these shifts is crucial as they reflect broader trends in consumer preferences and technological advancements in the automotive industry. The transition to new products like the Cybercab and Optimus robot may also affect employment and innovation in the sector.