It’s been on the horizon for weeks, but the conclusion is approaching: Only a few hundred Tesla Model S and Model X cars are left available for sale. Tesla’s CEO Elon Musk confirmed in a post on X this week that custom orders for the Model S sedan and Model X SUV have concluded. “All that remains are a few in inventory,” he stated.

Musk initially revealed Tesla’s intention to halt Model S and Model X production back in January. The data clarifies the reasoning behind this.

Sales of the Tesla Model X and Model S have consistently decreased over the years as the company’s higher volume and more affordable models — the Model 3 and Model Y — have risen in popularity. Tesla aggregates S and X sales under “other models,” which now includes the Cybertruck. The combined data shows S and X sales peaked in 2017 at 101,312 units before dropping to 50,850 units (Cybertruck inclusive) in 2025 — a minute fraction of the 1.63 million vehicles it shipped worldwide last year.

In simple terms, their demise was unavoidable. The subsequent developments are slightly more complex.

Musk is not replacing the void created by the Model X and Model S with a conventional EV; he abandoned plans to manufacture a more affordable EV that was anticipated to cost around $25,000. Instead, Musk is betting on the Optimus robot, which has yet to commence production, and the Cybercab, an entirely electric two-seater autonomous vehicle that was first introduced as a concept in 2024.

Tesla aims to manufacture Optimus robots at its Fremont, California, facility once production of the Model S and Model X concludes, potentially any day now as final orders have been placed. Musk has indicated that Tesla will start producing the Cybercab this month at its factory in Austin, Texas.

A retrospective

The Model S and X EVs have taken a backseat to the more budget-friendly Model 3 and Model Y vehicles. However, their launches and initial sales represented two pivotal moments in Tesla’s vibrant and often tumultuous history. The Model S debuted in 2012 as the company’s first mass-market EV. Its acclaim not only transformed consumer perceptions of EVs but also compelled traditional automakers — long skeptical of the significance of electric vehicles — to pay attention.

The Model X followed in autumn 2015 and was famously dubbed by Musk as the Fabergé egg of EVs.

“I think we got a bit overenthusiastic with the X,” Musk remarked in a September 2015 press interview attended by this reporter just an hour prior to Tesla’s Model X delivery event. “I’m not certain anyone should manufacture this car.”

The Model X was frequently delayed and initially critiqued for its complexity. Nevertheless, it ultimately opened doors for the company to a new demographic: women.

The Model X elevated Tesla’s visibility, positioning the company for its next significant venture: an affordable mass-market EV. The Model 3 experienced a rocky beginning, but ultimately propelled Tesla into the spotlight. The Model Y solidified its status, helping Tesla to extend its lead as the top-selling EV manufacturer worldwide until China’s BYD claimed that leading global EV sales position in 2025, delivering 2.26 million EVs.

Tesla continues to sell thousands of Model 3 and Model Y units, but its growth has stagnated and even reversed. The company announced in January that it sold 1.69 million vehicles in 2025, a decline for the second consecutive year. Its attempts to boost sales with more economical, stripped-down versions of the Model 3 and Model Y launched in October have shown some degree of success, based on first-quarter 2026 numbers reported on April 2.

In the first three months of the year, Tesla delivered 358,023 EVs globally, approximately 6% more than during the same timeframe in 2025, which was the company’s worst quarter in years. This figure fell short of analysts’ projections of around 368,000.

But that is of little concern. In Musk’s perspective — one for which he is well rewarded — Tesla is not merely an automaker or a sustainable energy entity, as he has previously stated. Tesla is fundamentally an AI company, and his new strategy fully embraces that vision.

Cybercab challenges

The Optimus robot is one component of Tesla’s AI initiative. However, it is the Cybercab that most clearly captures and unveils the risks associated with the company’s AI-centric approach.

The Cybercab is engineered to operate as an autonomous vehicle without conventional controls such as a steering wheel or pedals, meaning it will launch without the support of a human safety operator.

The inaugural Cybercab exited the Tesla factory assembly line in February and is scheduled to begin mass production this month. However, that timeline may be pushed back, as many have in Tesla’s past.

Unlike Tesla’s earlier vehicles, the challenges here do not lie in the production (who can forget the production struggles of the Model 3?). Instead, it faces significant regulatory impediments before it can hit the streets. Federal motor vehicle safety standards require vehicles to include a steering wheel and pedals. There is no indication that Tesla has sought an exemption, based on publicly available records from the Federal Register and the National Highway Traffic Safety Administration.

The vehicles will also depend on Tesla’s Full Self-Driving software to navigate public thoroughfares and securely transport passengers to their destinations. Despite advancements in FSD and limited trials with driverless robotaxis in Austin, Tesla has yet to prove that its software can function reliably at scale.

And that aspect demands more than just technical expertise. Robotaxi operations are also complex. In places like California, they require permits to deploy and charge for rides in driverless vehicles.

Zoox, the autonomous vehicle firm owned by Jeff Bezos’ Amazon, could pave the way for Tesla and its Cybercab. Zoox received an exemption from the National Highway Traffic Safety Administration permitting it to showcase its custom-designed robotaxis, which do not feature pedals or a steering wheel, on public streets. Zoox is currently undergoing a public process to have that exemption expanded to commercial activities.

Musk attempted to convince shareholders about the merits of the risk during the company’s earnings call in January.

“The vast majority of miles traveled will be autonomous in the future,” Musk stated at the time, adding that the Cybercab is highly optimized for the lowest cost per mile and also for a significantly higher usage rate. “I would estimate probably less than, I’m just hypothesizing, but probably less than 5% of miles driven will see someone actually driving the car themselves in the future, perhaps as low as 1%.”