Tesla is in the process of sunsetting two of its oldest cars, the Model X and Model S. Will the discontinuation lead to higher resale values?
While the long-discontinued, Lotus-based Tesla Roadster first put the Tesla brand on the map back in the late 2000s, it was the subsequent Model S sedan and Model X SUV that truly transformed the electric car maker from a niche startup into the major player that it is today.
And now, nearly 14 years after the first Model S was delivered, Tesla CEO Elon Musk has announced that the company will soon be ending production of both the Model S and Model X to reallocate production capacity toward the company’s new Optimus robots. This decision probably doesn’t come as a surprise to anyone who has been following Tesla’s by-model sales figures, which have been dominated by the Model 3 and Model Y in recent years. But it nonetheless marks a big shift, as the company says goodbye to these two groundbreaking models.
But what will this mean for the values of the Model S and Model X on the used market? Will the market treat them as unwanted, obsolete EVs as demand and prices fall further than normal? Or will their discontinuation boost demand and, at some point, even elevate the Model S and Model X into desirable modern classics for a new generation of enthusiasts? While it’s impossible to predict exactly what will happen in the coming years, the actual outcome will probably lie somewhere in the middle.
