Marquee models sacrificed as Tesla EV sales plummet

Tesla EV sales

In a clear sign of trouble at the company, CEO Elon Musk says that production of the Model X and Model S will be discontinued “next quarter” as Tesla EV sales continue to skid.

According to the Guardian, in the latest investor call, Musk said “It’s time to basically bring the Model S and X programs to an end. Further, Fremont, CA factory where the models are built is to be converted to produce the Optimus robot, and additional emphasis will be placed on the company’s Robotaxi.

The demise of the Model S in particular is troubling, as it was the car that put electric vehicles (EVs) on the map, and remains the class of Tesla‘s product line.

Analysts across the industry see the moves as a pivot to AI and robotics, but its clear that the company is suffering from both the loss of Federal subsidies and Musk’s own vastly unpopular political inroads.

And if his continued unpopularity are any sign, in our opinion, it seems unlikely that new products in any market will save the company. An overly optimistic or simply delusional Musk has stated that Optimus would be the “biggest product of all time” and said that the robots, along with autonomous vehicles, would usher in “a world where there is no poverty”.

Just how are those two connected to erasing poverty?

This from the man who has called Cybertruck “the best vehicle Tesla has ever made.” Sales of the truck are down 48% for the year, even as SpaceX has purchased over 1,000 of the truly polarizing vehicles.

Although earnings in the fourth quarter exceeded expectations, Tesla’s total automotive revenues dropped 11% in 2025. Fourth-quarter vehicle deliveries declined 16% year-over-year.

Yes, EV sales are in trouble, but hardly dead. China’s BYD overtook Tesla last year as the world’s largest electric carmaker and saw sales rise 28% in 2025.

The company features a broad line of less expensive models and, while China is its primary market, BYD is making inroads into Europe and North America through Canada.

The two companies compete directly in China where BYD is the clear winner.

It’s easy to see a company in near freefall. There is stiff competition in both robotics and AI and those companies are not saddled with a polarizing CEO. We wish him luck reaching his pay package’s promised trillion dollar compensation.

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