Tesla posts first ever sales drop in 2025, Models S and X are first casualties






Sam Burnett

29 Jan 2026

Tesla is set to drop the Model S and Model X from its lineup so that it can make a shift to AI and robotics, according to company announcement today. 

The Texan carmaker posted a sales drop for the first time ever in 2025 amid controversy around owner Elon Musk and his flirtations with right-wing politics. The company’s full year income dropped from $98bn in 2024 to $95bn last year due to a combination of lower sales and cuts in government EV subsidies in key markets. 

The S and X ranges are the first casualties, though they’re due a decent retirement – the S has been in production since 2012 and the X since 2015. The news won’t affect the UK market as both S and X have been off sale in right-hand drive format since 2023, though left-hand drive models were available if you wanted. It does put an end to any speculation that new versions of either car might end up on sale in the UK. 

It all means that Tesla has just two cars in its UK lineup, the Model 3 and Model Y – the firm’s Cybertruck is not allowed on sale in Europe because it doesn’t meet the region’s safety standards. Both cars remain compelling purchases thanks to their combination of value and range, plus the peace of mind of having Tesla’s Supercharger network of charge points across the country. 

The California factory that currently builds the Models S and X will be shifted to production of Tesla’s ‘Optimus’ humanoid robot, which the company says will be ideally suited to “unsafe, repetitive or boring tasks”. 

Tesla's long-promised new models like the Roadster have yet to arrive, but the 3 and Y are still going strong
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