Experts have questioned the decision for Tesla to axe two of its electric vehicles from its lineup amid plans for Elon Musk to turn the automaker into an AI-focused robotics company.
Tesla CEO Elon Musk confirmed earlier this week that the Model S and Model X would be axed from its lineup as it looks to wind down production towards the end of the current quarter.
He also unveiled plans to more than double Tesla’s spending to around $20billion (£14.5billion) to focus on production of its Cybercab autonomous vehicles.
Other funding will go towards the rollout of Optimus humanoid robots, batteries and the manufacturing of its Semi, which is expected to begin volume production in the coming months.
The official X account of Tesla and Elon Musk called on drivers to buy a Model S or X sooner rather than later, before production ceases towards the end of this quarter.
Many on social media were surprised that Mr Musk was making the decision to end production of the Model S and X, although sales have largely stalled in recent years.
Data from the company showed that the Model 3 and Model Y remained the dominant selling force from the brand, while the S, X, Semi and Cybertruck were on the fringes of sales.
Ginny Buckley, the chief executive of Electrifying.com, the electric car buying and advice site, highlighted that the decision could impact nationwide EV sales.
READ MORE: Tesla confirms plans to axe Model S and Model X as Elon Musk backs rollout of humanoid robots
Experts have questioned Elon Musk’s decision to axe production of the Tesla Model S and Model X in favour of funding for the Cybercab and the Optimus humanoid robot
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TESLA/REUTERS
Speaking to GB News, she said: “This decision underlines how far Tesla is drifting from being a pure car company.
“But while its focus shifts to robots and autonomy, most car buyers are still looking for affordable, practical family cars – and they now have more choice than ever, with more than 50 new electric cars due to arrive in 2026 alone.”
The Cybercab now seems to be the main focus of Tesla, with Elon Musk, as well as the brand’s investors, pinning hopes on the autonomous vehicles to increase sales and interest in its technology.
In recent years, Tesla has made bold statements about the Cybercab, with the first public display of the vehicle being exhibited at a glitzy event in Los Angeles in October 2024.
The Tesla Cybercab has been testing in Alaska in recent months
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TESLA
Elon Musk was driven to the event in an autonomous Cybercab robotaxi, which does not include a steering wheel or pedals, with the billionaire gushing over the impressive technology.
Speaking at the time, Mr Musk said the autonomous electric vehicle would retail for less than $30,000 (£21,743), although it is unclear whether Tesla will stick with this price tag when volume production begins soon.
He added that the operating cost of the Cybercab would be just 20 cents (14p) per mile, while also revealing that charging would be inductive, removing the need for a plug and cable.
The Cybercab, which is expected to begin mass production in April, has been spotted testing in Alaska to ensure the vehicle is prepared for adverse winter conditions.
The Tesla Cybercab robotaxi will enter production in April this year
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TESLAGinny Buckley continued, saying: “It’s also telling that Tesla’s software-led approach to cars isn’t now delivering the numbers proving that well-designed and engineered hardware still matters just as much as clever tech.
“That shift leaves Tesla facing tougher questions than ever about where it fits in an EV market that’s rapidly maturing.”
Tesla has seen its share of the electric vehicle market dwindle in recent months as other manufacturers, especially those from China.
