Tesla is preparing to discontinue its Model S and Model X vehicles by the second quarter of 2026. CEO Elon Musk confirmed the decision, stating that the move is closely tied to Tesla's long-term vision of shifting to robotics. The production space will be converted into an Optimus factory, highlighting the increasing importance of Tesla's humanoid robot program.
The Model S and Model X, while once technological flagships for Tesla, have seen declining sales volumes compared to the Model 3 and Model Y. In 2025, combined deliveries of the Model S and Model X totaled just over 50,000 units, while the Model 3 and Model Y exceeded 1.58 million. This shift reflects Tesla's evolving priorities as it focuses on its Optimus project.
For Canadian consumers, this means the eventual end of new Model S and Model X availability. However, existing owners will likely continue to receive software updates and support. The move also aligns with Canada's recent trade agreement allowing increased imports of Chinese-made EVs, potentially impacting Tesla's Canadian market strategy. While Tesla has been discontinuing Autopilot in the US and Canada, all new car purchases now come standard with Traffic-Aware Cruise Control.
