Gary Zhou 
Key Takeaways
- Tesla has decided to retain the Model S and Model X in its lineup, despite them having no direct alignment with future growth goals.
- The Model S and Model X accounted for only 23,000 deliveries in Q4, raising questions about their continued viability.
- Tesla’s VP of Vehicle Engineering, Lars Moravy, confirmed on the Ride the Lightning podcast that there are no plans to phase out the Model S and Model X.
- Upcoming improvements are planned for the Model S and Model X, borrowing technology and enhancements from the Model 3 and Y.
- The Model S and Model X are appreciated for potential autonomy and robotaxi usage, offering quality and space.
Tesla’s flagship vehicles, the Model S and Model X, remain symbols of innovation and status in the electric vehicle market. Despite shifts in strategy towards more affordable mass-market vehicles, Tesla has decided to retain these models in its lineup. This blog post explores Tesla’s strategic choices, the updates to the models, and their promising role in autonomy and robotaxi services.
Understanding Tesla’s Decision
Historical Significance
The Model S and Model X are not just cars; they have been pivotal in cementing Tesla’s reputation as a luxury brand. Introduced as trailblazers in electric mobility, they set the stage for the wider adoption of electric vehicles (EVs) worldwide. However, with Tesla’s recent focus on the mass-market Model 3 and Y, the decision to continue producing the S and X could be seen as sentimental, keeping Tesla’s history alive while banking on their premium appeal.
Current Sales Performance
- In Q4, the combined sales of the Model S and X stood at 23,000 units.
- This figure represents a small fraction of Tesla’s overall sales, spearheaded by the more accessible Model 3 and Y.
- The low sales raise questions: Are the S and X still viable? Tesla believes so, but they plan to adapt.
Updates and Upgrades: What’s in Store?
Borrowing from Success
Tesla’s VP of Vehicle Engineering, Lars Moravy, assures that the S and X won’t be phased out soon. Instead, these models will benefit from technological updates inspired by the advancements in Model 3 and Y, such as:
- Enhanced Technology: Expect improvements in software and hardware that enhance the driving experience.
- Performance Boosts: Upgrades are likely to include better energy efficiency and power performance.
Autonomy and Robotaxi Potential
One of the prime reasons for Tesla’s commitment to the S and X is their potential role in future autonomy and robotaxi fleets. The quality of Model S and its lush features make it ideal for a high-end autonomous driving experience. Meanwhile, the spacious Model X offers practical benefits for ride sharing due to its larger interior and door design.
Why Tesla’s Strategy Makes Sense
Balancing Innovation with Tradition
Tesla’s choice to maintain these legacy models indicates a strategic balance between pioneering affordable EVs and respecting its groundbreaking origins. By upgrading these models, Tesla addresses a niche market, appealing to luxury buyers and tech enthusiasts who value exclusivity.
Future Gazing: The Robotaxi Revolution
Model S and X’s envisioned role in a robotaxi service capitalizes on their autonomous potential. Tesla is banking on a fully autonomous future, with these models providing premium options in the autonomous mobility space, integrating seamlessly with Tesla’s ambitious goals.
- Tesla’s decision to preserve the Model S and X emphasizes their continuing importance to the brand identity.
- Despite low sales figures compared to newer models, their enhancement with cutting-edge technology keeps them relevant.
- Autonomy and shared mobility represent promising future avenues where these models might excel.
