Tesla May Discontinue the Model S and Model X

Tesla is starting to get more into the mass market for vehicles and in the future, they may discontinue the Model S and Model X.

Tesla In the Mass Market for Vehicles

If you pay attention to Tesla on their quarterly earnings calls and their investor day presentation for 2023, you should understand that Tesla is moving toward more mass market and affordable electric vehicles.

This means making more Model Y and Model 3 vehicles now and, in a couple of years time, compact versions of each of these vehicles. By the time Giga Mexico is fully ramped, I expect Tesla to be at around 9 million vehicles per year in 2027. These vehicles will cost between $20,000 and $25,000.

At that time, in 2027, Tesla will be working on sub compact vehicles. These vehicles will cost around $15,000 to $18,000 and be even more affordable and simpler, but still with all the great things that make a Tesla vehicle awesome - cameras, safety features, and a center screen.

Tesla will then produce a robotaxi vehicle with no pedals or a steering wheel. All in all, with these mass market vehicles, Tesla will get to 20 million vehicles per year as is their stated goal, but I don't believe Tesla will stop there.

If you are paying attention, you know that Tesla has a great shot at getting here, as electric vehicles are mostly superior to gas cars. The only disadvantage is batteries lose range over time and EVs don't perform as well in the cold - especially LFP batteries.

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Discontinuing the Model S and Model X

This brings up a great question I saw today on X.com. Someone was saying that if Tesla is making so many affordable versions of vehicles, why would they take up the space to make the Model S and Model X. It's a great question.

Of course, I can't predict the future here, but I know that Tesla could make much more efficient use of its Fremont, CA factory space making smaller vehicles that are simpler to assemble, that can be autonomous and earn tens of thousands of dollars per year for Tesla. This makes a lot more sense than making the Model S and Model X.

Tesla did discontinue the original Roadster, though there has been an announcement that a new Roadster will be built some time and pre-orders have even taken place for it.

If I had to make a prediction, I would say that Tesla will discontinue the Model S and Model X - or they will make them in very limited supply as collector items - like the new Tesla Roadster will be. Even this seems like a stretch, though. If Tesla is going to transition the world to sustainable energy as fast as possible, then the Model S and Model X will become a bottleneck.

Even so, Tesla may just keep making them in Fremont and make another U.S. factory to produce the new versions of the compact and sub compact vehicles. Tesla would still make quite a bit of money doing this.

Look for something to be announced, in my opinion, about the Model S and Model X in a few years time. For now, I don't see Tesla discontinuing these vehicles.

What do you think - will Tesla eventually discontinue the Model S and Model X?

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News. Image Credit, Tesla, Screenshot