Tesla Model X & S End? Cybercab Takes All!
For weeks, the rumors have swirled, and now the shift is undeniably happening: only a few hundred Tesla Model S and Model X vehicles remain unsold. Tesla CEO Elon Musk confirmed this week via a post on X (formerly Twitter) that custom orders for the Model S sedan and Model X SUV are officially closed. “All that’s left are some in inventory,” he stated. This marks a significant turning point for Tesla, signaling a strategic pivot away from its original luxury models and towards a future dominated by AI and autonomous technology.
The Decline of the Flagships
Musk initially announced Tesla’s plan to discontinue Model S and Model X production back in January. The sales data clearly illustrates the reasoning behind this decision. Over the years, sales of the Model X and Model S have steadily declined as the more affordable and high-volume Model 3 and Model Y took center stage. Tesla now combines S and X sales under an “other models” category, which also includes the Cybertruck.
Combined sales of the Model S and Model X peaked in 2017 at 101,312 vehicles. However, by 2025, those numbers had plummeted to 50,850 vehicles (including Cybertruck) – a small fraction of the 1.63 million vehicles Tesla delivered globally last year. This dramatic decrease highlights the shifting consumer preferences and the success of Tesla’s more accessible offerings.
From Luxury EVs to AI-Driven Future
The end of the Model S and Model X wasn’t entirely unexpected. However, the direction Musk is taking Tesla in their place is somewhat unconventional. He abandoned plans for a lower-cost EV, initially projected to be priced around $25,000. Instead, Musk is doubling down on two ambitious projects: the Optimus robot and the Cybercab, an all-electric, two-seater autonomous vehicle first unveiled as a concept in 2024.
Tesla intends to manufacture Optimus robots at its Fremont, California factory once Model S and Model X production ceases. Musk has announced that Cybercab production will begin this month at the company’s Austin, Texas facility. This represents a bold bet on the future of robotics and autonomous transportation.
A Look Back: The Legacy of the Model S and X
While the Model X and Model S have taken a backseat to the Model 3 and Model Y, their initial launch and sales were pivotal moments in Tesla’s history. The Model S, launched in 2012, was Tesla’s first volume EV. Its popularity fundamentally changed consumer perceptions of electric vehicles and prompted established automakers to seriously consider the potential of EV technology.
The Model X followed in the fall of 2015, famously described by Musk as the “Fabergé egg of EVs.” Musk himself expressed doubts about the Model X’s complexity during a press interview just hours before the delivery event, stating, “I’m not sure anyone should make this car.”
Despite initial delays and criticisms regarding its complexity, the Model X proved successful, attracting a new demographic to the Tesla brand – particularly women. The Model X significantly raised Tesla’s profile and paved the way for the development of a more affordable, mass-produced EV.
The Rise of the Model 3 and Y, and the BYD Challenge
The Model 3, despite a challenging start to production, ultimately propelled Tesla into the mainstream. The Model Y further solidified Tesla’s position, helping the company become the top-selling EV producer globally. However, in 2025, China’s BYD surpassed Tesla, delivering 2.26 million EVs.
Tesla continues to sell thousands of Model 3 and Model Y vehicles, but its growth has stalled and even reversed. The company reported 1.69 million vehicle deliveries in 2025, a decrease for the second consecutive year. Efforts to stimulate sales with cheaper, stripped-down versions of the Model 3 and Model Y, introduced in October, have seen limited success.
First-quarter 2026 figures, reported on April 2nd, show Tesla delivered 358,023 EVs globally, a roughly 6% increase compared to the same period in 2025, which was the company’s worst quarter in years. This figure fell short of analysts’ expectations of around 368,000 units.
Tesla: An AI Company First
Despite these challenges, Musk maintains a clear vision for Tesla’s future. He views Tesla not as a traditional automaker or sustainable energy company, but as an AI company. This new direction is fully embodied in the company’s focus on the Optimus robot and, most notably, the Cybercab.
Cybercab: Risks and Regulatory Hurdles
The Optimus robot represents one facet of Tesla’s AI ambitions. However, the Cybercab arguably best exemplifies – and exposes – the risks associated with the company’s AI-first strategy. Designed as a fully autonomous vehicle without traditional controls like a steering wheel or pedals, the Cybercab aims to revolutionize personal transportation.
The first Cybercab rolled off the Tesla assembly line in February, with mass production slated to begin this month, although delays are always a possibility given Tesla’s history. However, the Cybercab faces significant regulatory obstacles before it can operate on public roads.
Current federal motor vehicle safety standards require vehicles to have steering wheels and pedals. There is currently no public record of Tesla applying for an exemption to these standards with the Federal Register or the National Highway Traffic Safety Administration (NHTSA).
Navigating the Regulatory Landscape
The Cybercab’s reliance on Tesla’s Full Self-Driving (FSD) software also presents a challenge. While FSD has improved and limited driverless robotaxi tests are underway in Austin, Tesla has yet to demonstrate the software’s reliability at scale.
Furthermore, operating robotaxi services requires permits in states like California, adding another layer of complexity.
Zoox, the autonomous vehicle company owned by Amazon, may pave the way for Tesla. Zoox has received an exemption from NHTSA allowing it to test its custom-built, pedal- and steering-wheel-less robotaxis on public roads and is currently seeking an extension for commercial operations.
Musk’s Vision for Autonomous Future
During Tesla’s earnings call in January, Musk attempted to convince shareholders of the Cybercab’s potential. “The vast majority of miles traveled will be autonomous in the future,” he stated, adding that the Cybercab is “super optimized for minimum cost per mile and also for a much higher-duty cycle.”
He further estimated that less than 5% of miles driven will involve a human driver, potentially dropping to as low as 1%. This ambitious prediction underscores Musk’s unwavering belief in the transformative power of autonomous technology.
The Future of Tesla: A Bold Gamble
The discontinuation of the Model S and Model X represents a significant shift in Tesla’s strategy. The company is betting heavily on AI, robotics, and autonomous driving with the Optimus robot and the Cybercab. While the risks are substantial, the potential rewards – a future dominated by autonomous transportation and advanced robotics – are equally immense. Whether Tesla can successfully navigate the regulatory hurdles, technological challenges, and market uncertainties remains to be seen, but one thing is certain: the future of Tesla is no longer about building luxury EVs; it’s about building the future of AI.