Tesla's Worst Quarterly Earnings in Years Signal the End of an Era The latest quarterly earnings call from Tesla has left many in the automotive industry scratching their heads. The company's fourth-quarter profits plummeted by 61% year-over-year, and annual profit took a massive 46% hit in 2025. This decline in profits has sent shockwaves throughout the electric vehicle (EV) market, with many experts speculating that this could be the beginning of the end for some of Tesla's oldest models. At the forefront of this decline are the Model S sedan and Model X SUV. As reported by various sources, including TechCrunch, CEO Elon Musk announced on the call that Tesla will be discontinuing production of these two models. This decision comes as no surprise, given that the Model S has been on the market since 2012 and the Model X has been around since 2015. Both models have struggled to ...
Tesla’s Worst Quarterly Earnings in Years Signal the End of an Era
The latest quarterly earnings call from Tesla has left many in the automotive industry scratching their heads. The company’s fourth-quarter profits plummeted by 61% year-over-year, and annual profit took a massive 46% hit in 2025. This decline in profits has sent shockwaves throughout the electric vehicle (EV) market, with many experts speculating that this could be the beginning of the end for some of Tesla’s oldest models.
At the forefront of this decline are the Model S sedan and Model X SUV. As reported by various sources, including TechCrunch, CEO Elon Musk announced on the call that Tesla will be discontinuing production of these two models. This decision comes as no surprise, given that the Model S has been on the market since 2012 and the Model X has been around since 2015. Both models have struggled to keep up with the competition in terms of sales, with the Model S and Model X combined delivering a mere 50,850 units in 2025 – a 40.2% decrease compared to the previous year.
While the discontinuation of the Model S and Model X may seem like a significant blow to Tesla’s lineup, it’s essential to consider the bigger picture. The EV market is rapidly evolving, and consumers are increasingly opting for newer, more efficient models. Tesla’s decision to focus on its newer models, such as the Cybertruck and the Model 3, is a reflection of this shift.
However, the question remains: what’s next for Tesla? While the company has hinted at the development of next-generation versions of the Model S and Model X, it’s unclear whether these models will ever see the light of day. One thing is certain, though – Tesla’s commitment to innovation and sustainability will continue to drive the company forward, even in the face of declining sales.
In the meantime, Tesla’s focus on its core models will likely remain a key aspect of its strategy. As the EV market continues to grow and evolve, it’s essential for Tesla to stay agile and adapt to changing consumer demands. With its commitment to sustainability and innovation, Tesla is well-positioned to continue its dominance in the EV market – even if it means saying goodbye to some of its oldest models.
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