Tesla Ends Model S and X Era, Bets Everything on What's Next

Summary

Last week, it was reported that Tesla Inc NASDAQ: TSLA had produced its final Model S and Model X vehicles at its Fremont, California factory, drawing the curtain on 14 years of Model S production and 11 years of Model X production. Tesla Today$409.29 +5.18 (+1.28%) As of 10:40 AM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$273.21▼$498.83P/E Ratio375.29Price Target$395.20 It won’t have come as a big surprise, given CEO Elon Musk had guided that this would happen back in January, describing the two models as being due for an "honorable discharge," but seeing it actually happen is something else. For a company built on the back of those vehicles, it's the kind of milestone that gives pause for thought. And yet, the more you look at what Tesla is pivoting toward, the harder it becomes to frame this as anything other than a deliberate and confident bet on the future. The Fremont factory, for example, isn't just going dark. Tesla plans to convert it into an assembly plant for Optimus, its much-lauded humanoid robot project, with Musk suggesting recently that production could begin before the end of the year. That’s a pretty clear message to send, and it effectively says that Tesla is going all-in on its next growth chapter. However, with the stock currently trading back below $410 as it fights to hold onto its gains over the past six weeks, investors are right to wonder what all this means for Tesla’s prospects. This pivot isn’t exactly new news either—so has it already been priced in, or is there still real upside ahead? Let's jump in and take a closer look below. The Pivot Is Real, and the Numbers Are Starting to Reflect ItWhat's easy to miss in the noise around Tesla's transformation is how much of it is already generating tangible momentum rather than simply forward-looking hype. For example, its Full Self-Driving (FSD) subscriber count is growing more than 50% year over year, a pace that matters not just for the revenue it...