Tesla (NASDAQ: TSLA) is set to discontinue production of its Model S and X vehicles in the second quarter, ending June 30, 2023. This decision comes as the company shifts focus towards the development of autonomous vehicles and robotics, particularly aiming to produce its Optimus robots at the Fremont factory. Despite these changes, Tesla has faced declining global sales for the past two years, and analysts predict this trend could continue into 2026.
The company’s high-volume models, the Model 3 and Y, are also aging, raising concerns about future sales without timely refreshes. Tesla’s plans to double capital expenditures to over $20 billion may lead to a cash flow reversal, shifting from seven years of positive cash flow to potential cash outflows. Investors are encouraged to reconsider their strategies as Tesla’s direction evolves.
