Tesla Discontinues Model S and X: Industry Impact
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Should l Buy TSLA?
Source: Fool
- Discontinuation Announcement: Tesla's decision to discontinue the Model S and Model X marks a significant turning point in the electric vehicle history, potentially diminishing its competitiveness in the premium market and impacting future sales and brand perception.
- Factory Repurposing: The factory producing the Model S and X will be repurposed, reflecting Tesla's adaptability to market demand changes and potentially providing space for new model production, which could affect overall production efficiency.
- Market Reaction: Following the discontinuation announcement, Tesla's stock price experienced volatility during morning trading on January 29, 2026, as investor concerns about the future product lineup may lead to short-term stock pressure, impacting market confidence.
- Strategic Shift: This decision may indicate Tesla's shift in focus towards new models and technological innovations, which, while facing short-term challenges, could open up new growth opportunities for the company in the long run.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 401.93 USD with a low forecast of 25.28 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 397.210
Low
25.28
Averages
401.93
High
600.00
Current: 397.210
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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