Tag: Model S

Key Takeaways

1. Tesla is discontinuing the Model X and Model S due to tough competition and declining sales.
2. New competitors, like the Volvo EX60, offer similar or better features at lower prices.
3. The Model S is priced higher than rivals such as the Lucid Air, despite lacking some comfort features.
4. Tesla is pivoting towards more affordable electric cars, focusing on mid-range models like the Model Y and Model 3.
5. The future of the Cybertruck is uncertain, with plans to potentially market it as a fully autonomous work vehicle.

Tesla is currently encountering tough rivals in the high-end electric vehicle market, leading the company to pivot towards offering more affordable electric cars. This shift involves discontinuing its well-known Model X and Model S models just months after their recent updates.

New Competition on the Block

Take the new Volvo EX60 as an example; it’s a 2-ton SUV capable of traveling 400 miles on a single charge, which is comparable to Tesla’s longest-range Model S sedan. However, it comes at 30% less cost than the Model X, while boasting a modern 800V powertrain and a more upscale interior.

Challenges for the Model S

The Model S itself faces a similar issue, being priced 20% higher than competitors like the Lucid Air Touring, even though its specifications are quite alike and it lacks some comfort features. As it becomes clearer that Tesla struggles to compete on price in the premium EV market, the decision to phase out both the Model X and Model S has been made.

Tesla plans to halt production of the Model S and Model X by June 2026, but it will continue to provide support to their owners. Elon Musk mentioned some vague “shift to an autonomous future” as the reason for discontinuing these models, but the truth is, their sales simply aren’t strong. Over the past year, sales of the Model S and Model X have dropped by 50%, and Tesla’s “other” vehicle category in sales has always been quite small.

Concerns with Current Offerings

Similar to the Cybertruck, these vehicles are priced over $100,000 but feature an outdated powertrain, slow charging times, and an interior that doesn’t meet expectations for this price range. Features like falcon wing doors or a 1,000 HP tri-motor setup haven’t been enough to save them from poor sales.

Tesla is also considering the future of the Cybertruck, which is performing even worse than the Model X or Model S. After trying to introduce it in markets like the UAE, Tesla is now contemplating whether to promote it as a fully autonomous work vehicle. Musk commented, “We will transition the Cybertruck line to just a fully autonomous line. There’s a lot of cargo that needs to move locally within a city, and an autonomous Cybertruck could be very useful for that.”

The Future of Tesla’s Offerings

In essence, Tesla seems uncertain about the role of the Cybertruck as well, leading to the decision to cut all premium vehicles from its retail offerings. Initially, Tesla focused on luxury electric cars, but it appears there’s no longer a market for them, at least not for Tesla’s versions. The company seems to be shifting towards selling only mid-range models like the Model Y and Model 3. As for the Fremont factory, where the Model S and Model X were produced, it will likely transition to producing Optimus and solar assemblies instead.

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Key Takeaways

1. Elon Musk warns that Tesla will face repercussions from new US tariffs despite ties with the president.
2. Tesla has halted orders for the Model S and Model X in China, affecting customers who must import these vehicles.
3. The shipping process for Model S and Model X can take up to eight months for Chinese buyers.
4. American goods face an 84 percent import duty due to China’s retaliatory tariffs, raising prices for Tesla’s high-end models.
5. Model S and Model X accounted for less than 4 percent of Tesla’s sales last quarter, suggesting limited short-term impact from halted orders.

Tesla CEO Elon Musk has expressed concerns that his company, despite its close ties to the president, will still face the repercussions of the new tariffs set by the current US government. This warning seems to be coming true, as Tesla’s operations in China have halted orders for the Model S and Model X.

Impact on Chinese Customers

Customers in China wishing to buy Tesla’s two most expensive electric vehicles must import them from the United States, making them susceptible to the ongoing trade tensions between the two countries. The shipping process for the Model S and Model X can take as long as eight months for buyers in China. Unfortunately, even those willing to endure the long wait can no longer place orders, as Tesla has replaced the “Order Now” buttons on these models’ websites with “View Now.” In contrast, the Model 3 and Model Y are still available for purchase, as they are produced in Shanghai.

Tariffs and Sales

As a result of China’s retaliatory tariffs, American goods now face a staggering 84 percent import duty. Adding these extra costs to the already high prices of the Model S and Model X could render them unaffordable for a lot of Chinese consumers. Nevertheless, it’s worth noting that these two models accounted for less than 4 percent of Tesla’s sales in the previous quarter, suggesting that the automaker may not experience significant short-term effects from this halt in orders from China.

Tesla’s operations in China are currently navigating a complex landscape, balancing tariffs and supply issues while trying to maintain a foothold in one of the world’s largest electric vehicle markets.

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When Tesla launched free lifetime Supercharging for the Model S, it quickly became a hit, even though its charging network was just starting out.

Years later, those Model S vehicles that include free lifetime Supercharging still fetch higher prices in the resale market. This is true despite the fact that early models, particularly those made before 2016, had a known design flaw in the battery housing that caused failures.

Battery Replacement Boosts Value

If the battery was swapped out under warranty, or by the previous owner, and the valve issue was fixed, the Model S with free charging became even more desirable. The same applies to the Model X, which was sold with transferable free Supercharging until March 2017.

Fresh Incentives for Sales

Tesla is currently looking to attract buyers in America and Europe for its pricier high-performance models, the Model S and Model X, by offering the same free Supercharging incentive to boost sales. Given that the Model S and Model X make up a small portion of Tesla’s total sales, they’re not losing a lot with this offer. Additionally, the price of the Model X has been raised, putting it above the federal tax credit limit. Elon Musk likely understands that the Trump administration might eliminate the EV tax credit program, similar to what happened with the national EV charging network, so Tesla could be adjusting its incentives accordingly.

Changes to the Offer

However, the free lifetime Supercharging deal for the Model S and Model X isn’t exactly the same as the initial offer. The original deal was transferable, while the current offer has specific terms:

Customers who buy or lease a new Model S can enjoy free Supercharging as long as they own the vehicle. This offer is linked to the Tesla account and can’t be transferred to a different vehicle, person, or order, even if ownership changes. Used cars, business orders, and vehicles used for commercial purposes (like rideshares or deliveries) are not eligible. Owners are still responsible for Supercharger fees, including idle and congestion charges, if they apply. This promotion can be combined with other offers, but Tesla has the right to revoke free Supercharging if there are excessive charges or unpaid fees. The promotion may change or end at any time.

In essence, while the free lifetime Supercharging for the Model S or Model X lasts as long as the buyer owns the vehicle—potentially up to 20 years—it is linked to the buyer’s Tesla account and cannot be passed on to the next owner. This keeps the resale value of the car elevated for a longer time.

Recent Trends in Offers

Tesla has applied this new approach to all its free lifetime Supercharging offers recently, including the one for the Cybertruck, as well as limited-time promotions used to clear out inventory in the last two quarters.

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