Tesla to end Model S and Model X production, betting on its next challenge
Tesla has ended production of the Model S and Model X. The company announced that it would focus on Full Self-Driving (FSD), robotaxis (Cybercab), energy storage, and the Optimus humanoid robot, while analysts are divided, citing a price-to-earnings ratio of about 370 times and execution risks.
Tesla has ended production of the Model S and Model X. The Model S was produced for 14 years, and the Model X for 11 years. The company formalized its decision to end production.
Tesla named Full Self-Driving (FSD), Cybercab robotaxis, energy storage, and the Optimus humanoid robot as its next growth pillars. The company said it would reallocate resources to these areas. The announcement made clear its intention to shift its product lineup.
The company said there was tangible progress in its new businesses. Public materials said that the number of subscribers was growing and related revenue was being generated. It said early revenue streams were evident in some businesses.
Market analysts are divided over valuation and risk. Some analysts point out that Tesla’s price-to-earnings ratio is approximately 370times. Other analysts emphasize the execution risks of its new businesses.
There is speculation that SpaceX’s upcoming initial public offering (IPO) could affect the flow of investment funds. It has been noted that some investment funds flowed into Tesla in the past. Some expect the IPO could change how funds are allocated.
The end of production of the Model S and Model X has reshaped Tesla’s product portfolio. The company has officially said it will deliver results in new areas. It said it would present performance indicators for those segments in future announcements.
Sources: Investing.com
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