Tesla Model S Surprise Price Slash and Range Upgrade Sparks Buying Frenzy

Tesla’s flagship electric sedan is officially driving into the sunset. During the company’s fourth-quarter earnings call, CEO Elon Musk confirmed that production of the Tesla Model S—and its SUV sibling, the Model X—will cease in the second quarter of 2026. The surprise move frees up the Fremont, California, assembly lines for a new priority: mass-production of the Optimus humanoid robot, which Musk claims will become Tesla’s “most important product” over the next decade. Engineers are already retooling stamping, paint and final-assembly areas to meet an aggressive target of 250,000 robots a year once ramp-up is complete. Launched in 2012, the Model S rewrote the rules for luxury performance sedans, pairing blistering acceleration with more than 400 miles of EPA-rated range in its current Long Range trim. Yet sales have slipped as mainstream EVs undercut its six-figure price and fresh rivals—Lucid Air, Porsche Taycan, Mercedes EQE—crowded the premium segment. According to Tesla’s latest delivery report, Model S and Model X combined accounted for just 3 % of the company’s 2025 volume, down from 29 % at their peak. Existing owners won’t be left stranded. Musk promised at least eight years of guaranteed service, over-the-air software support, and continued access to the Supercharger network. Battery and power-train warranties remain unchanged, and Tesla is stockpiling critical spare parts before the last sedans roll off the line. Analysts expect a short-term dip in used-car values followed by a rebound as enthusiasts scoop up the final Plaid-edition cars. The discontinuation also signals a broader strategic pivot. Tesla is channeling R&D money toward full self-driving software, a $25,000 “next-gen” compact, and the long-delayed second-generation Roadster. By trimming low-volume models and doubling down on automation, the company hopes to lift operating margins after five straight quarters of compression. For potential buyers eyeing a new electric sedan, the clock is ticking. Inventory discounts on remaining Model S units have already appeared on Tesla’s website, with some configurations showing price cuts of up to $12,000. Industry watchers say those incentives could swell as Q2 approaches, making the swan-song Model S one of 2026’s sleeper deals. Bottom line: the Tesla Model S is bowing out, but its legacy—long-range battery tech, over-the-air updates, and the notion that an electric car can out-drag a supercar—will echo through every future EV. And if Musk’s robot ambitions pan out, the assembly line that birthed the world’s most recognizable electric sedan may soon be cranking out the machines that build the next generation of Teslas.