Tesla Plans to Discontinue Premium Models
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: stocktwits
- Premium Model Discontinuation: Musk announced that Tesla plans to discontinue the production of Model S and Model X in the coming quarter to free up factory space, marking a shift towards an autonomous future, although this move may impact its share in the premium market.
- Significant Capital Expenditure Increase: Tesla's CFO indicated that capital expenditures are expected to exceed $20 billion in 2026, a substantial rise from $8.5 billion in 2025, aimed at scaling production of Cybercab and Tesla Semi while preparing for Optimus humanoid robot production.
- Cybertruck Production Continues: Despite pulling back on premium models, Tesla will continue producing the Cybertruck, with Musk noting it remains the best-selling vehicle in the EV pickup category, and plans to transition it to a fully autonomous vehicle line to enhance market competitiveness.
- Robotaxi Launch: Tesla launched robotaxis without safety monitors in Austin, with around 500 Model Y vehicles currently operating in the Bay Area and Austin, although the company is cautious in scaling the service to ensure safety and compliance.
Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall 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: 430.900
Low
25.28
Averages
401.93
High
600.00
Current: 430.900
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.








