Tesla Vice President of Vehicle Engineering Lars Moravy stated in a podcast interview released Sunday, May 24, 2026, that the company may eventually revive the Model S and Model X. The luxury sedan and SUV were recently retired from Tesla's lineup to prioritize new business objectives. While Moravy did not confirm active development on new versions, he noted that the models might not be gone forever, stating, "Never say never."
The discontinuation of these vehicles follows statements made by Tesla CEO Elon Musk during a January earnings call. Musk described the move as an "honorable discharge" for the models as the company shifted its focus toward robotics and autonomous vehicles. The final units of the Model S and Model X were produced at Tesla's Fremont, California, factory in mid-May 2026. That facility is currently being converted into an assembly line for the company’s Optimus robot.
Moravy provided technical context for the retirement, citing global crash-test requirements as a factor. He explained that Euro NCAP, an organization that evaluates vehicle safety, updates its protocols approximately every five years. Moravy stated the existing vehicle platforms were not originally designed for newer small-overlap and offset crash tests. He noted that while Tesla had applied "band-aids" to maintain compliance, keeping the vehicles up to date would have required a "massive overhaul" of their structures.
According to Moravy, Tesla sold approximately 750,000 units of the Model S and Model X over their production lifetime. In the same podcast, Tesla Chief Designer Franz von Holzhausen provided an update on the second-generation Roadster. Von Holzhausen stated that Tesla plans to manufacture the sports car at its Texas facility and expects further details to emerge in the coming months.
The shift in production at the Fremont plant directly impacts the workforce and operations at that site. By replacing vehicle assembly lines with production for the Optimus robot, Tesla is fundamentally changing the nature of the work performed at one of its major American hubs. This transition reflects a strategic pivot that moves the company's focus toward the robotics and autonomous technology sectors.
For the automotive industry, Tesla’s decision to discontinue models rather than overhaul them for new safety standards highlights the costs associated with evolving global regulations. The requirement for a "massive overhaul" to meet new crash-test protocols serves as a benchmark for the engineering challenges faced by manufacturers as safety standards become more stringent. The next steps for the company involve the continued conversion of the Fremont facility and the expected release of further details regarding the Texas-based Roadster production in the coming months.