Will the Tesla Model X and Model S Soon Be Stripped from the Catalog?

The collapse of sales of the Tesla Model X and Model S makes their presence more costly than profitable for the American manufacturer.

The revelation of Tesla’s Q2 2024 sales confirms a slight commercial downturn related to increased competition that is eating into market share. The manufacturer has never been accustomed to detailing the precise mix of its sales by model.

Tesla prefers to group them by families: Model Y / Model 3… and the others. By this, we mean Cybertruck now, Model S, and Model X, two aging vehicles that have been marketed for over 10 years. Certainly, they have benefited from numerous updates, both electronic and stylistic, but the effects of age are impossible to ignore. And the customer, willing to spend several tens of thousands of euros or dollars, prefers novelty. That’s just how it is.

A third of sales down in 12 months

In its quarterly sales report, Tesla admits to 21,551 sales of “other models.” Notably, the Cybertruck is currently running at a monthly rate of over 3,000 units. Over a quarter, this approaches 9,000 to 10,000 deliveries. It thus absorbs half of this commercial balance sheet line.

Consequently, together, the Model X and Model S represent about 1,600 sales each globally. Compared to the same date in 2023, this represents a drop of nearly 37% over one year. There is a red alert at Tesla because nothing can now reverse the dynamics, not even huge discounts on sales prices. Furthermore, the stinginess of equipping a Model S, sold for over 90,000 euros, with plastic wheel covers costing 25 euros each, certainly doesn’t help…

Once again, Tesla finds itself trapped in a marketing positioning. It’s difficult to stretch between an ultra-popular Model Y and the desire to integrate the premium market against Porsche, Mercedes, or Audi. Tesla will have to choose between volumes and profitability. Unless financial markets decide for him.

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