Tesla Kills the Car That Started the EV Revolution

The car that proved electric vehicles could be desirable is about to disappear. During Tesla's earnings call this week, Elon Musk announced the company will stop manufacturing the Model S — the vehicle that single-handedly transformed EVs from environmental penance into objects of desire.

"That is slightly sad," Musk acknowledged, but the decision reflects Tesla's dramatic pivot away from carmaking toward artificial intelligence and robotics. The factory space once dedicated to the Model S will now produce Optimus, Tesla's humanoid robot prototype.

The Car That Changed Everything

Before the Model S launched in 2012, electric vehicles were slow, impractical machines that appealed mainly to the environmentally guilt-ridden. The Model S shattered that perception with supercar acceleration, luxury appointments, and a 400-mile range that could compete with traditional premium sedans from BMW and Mercedes-Benz.

The impact was immediate and lasting. Jake Fisher from Consumer Reports captured the transformation perfectly: "EVs went from 'eating your vegetables' to getting you super-car performance in a vehicle that's luxurious and quiet." Within a year of launch, Musk personally drove a Model S coast-to-coast to demonstrate its capability — a publicity stunt that became legend.

But the Model S did more than just prove EVs could work. It fundamentally redefined what a car could be. Tesla pioneered over-the-air software updates, turning vehicles into smartphones on wheels that improved after purchase. Features like Autopilot arrived via download, establishing a new paradigm where cars evolved throughout their ownership lifecycle.

The Business Reality Behind the Decision

Despite its revolutionary impact, the Model S never achieved mass-market success. With an initial price tag around $100,000, it remained a niche product. Today, nearly all of Tesla's global sales come from the more affordable Model Y and Model 3, relegating the Model S to the "Other Models" category in financial reports — a unceremonious fate for such an influential vehicle.

Tesla will also discontinue the Model X SUV, another low-volume model, as part of this factory reallocation. The move reflects harsh economic reality: Tesla's car sales are slumping while investors have offered Musk a $1 trillion pay package based largely on promises of autonomous vehicles and humanoid robots.

The Autonomous Gamble

Tesla's retreat from traditional carmaking represents an enormous bet on unproven technology. The company is essentially walking away from a business it helped create — the modern EV industry — to pursue robotaxis and humanoid robots that remain largely theoretical.

The irony runs deep. While Tesla abandons car development, competitors it inspired are thriving. Chinese automaker BYD recently surpassed Tesla as the world's largest EV seller, while companies like Geely and Xiaomi produce electric vehicles that often outperform Tesla's offerings. The student has become the master, perhaps explaining Tesla's strategic pivot.

The Model S's Autopilot feature, which debuted as a software upgrade, evolved into Tesla's "Full Self-Driving" technology. This progression forms the foundation for Musk's AI ambitions — the theory being that technology capable of navigating roads can also power humanoid robots navigating the physical world.

The Uncertain Road Ahead

Tesla faces a fundamental challenge: proving that consumers want autonomous vehicles and humanoid robots as much as they wanted better electric cars. The Model S succeeded because it solved obvious problems — range anxiety, performance limitations, and the perception that EVs were inferior. The value proposition for home robots and steering wheel-free cars remains far less clear.

The technology itself remains nascent. Fully autonomous vehicles haven't achieved safe, large-scale deployment despite years of development and billions in investment. Humanoid robots, while advancing rapidly, are still largely confined to controlled environments and specific tasks.