The company will stop making the pioneering EVs in the second quarter of 2026, CEO Elon Musk announced Wednesday.

Instead, the company focused on its best-selling SUV and sedan, the Model Y, and Model 3, while sales of the Model S and X dwindled. When reporting sales, Tesla lumps all of its premium models together in the "other models" category, and in the last quarter of 2025, it sold only 11,642 of these, a 51 percent year-over-year decrease.

Tesla, once the fastest growing and most profitable automaker in the world, posted tumbling profits in the fourth quarter, capping a year of controversy in the US and growing competition abroad.

Earnings season is in full swing, with 102 companies in the S&P 500 index reporting earnings this week, according to LSEG. ↗️ Tesla (TSLA): The automaker [canceled two EV models](

Electric vehicles are slowly becoming an accepted part of the world. While demand may have slowed over the past few years, people are now generally willing to consider them as their primary form of transportation.

Tesla’s annual profit plunged to its lowest level since the pandemic five years ago as it lost the title of the world’s biggest electric vehicle maker to a Chinese rival and boycotts hammered sales. The EV company run by Elon Musk reported Wednesday that net income last year dropped 46% to $3.