The End of an Era: Model S and X Production Ceases

Tesla has officially pulled the plug on the vehicles that built its brand. Production of the Model S and Model X ended this past weekend at the Fremont factory Road & Track. The move, first signaled by Elon Musk during the 2025 Q4 earnings call, clears floor space for the production of the Optimus humanoid robots Road & Track. While the Model S revolutionized EVs in 2012, both flagship models have faced years of declining sales compared to the high-volume Model 3 and Model Y Road & Track.

To mark the exit, Tesla produced a limited run of "Signature Edition" models—250 for the S and 100 for the X—priced at a cheeky $159,420 Road & Track. However, the send-off hasn't been entirely smooth; Musk abruptly postponed the scheduled May 12 delivery event for these final units Electrek via Road & Track. For now, Tesla’s lineup is streamlined to the Model 3, Model Y, and Cybertruck, with the second-generation Roadster still hovering in the "eventually" category Road & Track.

Beijing Bound: Musk Joins Trump’s Power Delegation

Elon Musk is heading back to China, but this time he’s flying with the U.S. government. The White House confirmed Musk is part of a 17-member executive delegation joining President Trump for a summit with Xi Jinping in Beijing this week BBC. The group includes heavy hitters like Apple’s Tim Cook, BlackRock’s Larry Fink, and JPMorgan’s Jamie Dimon New York Post. The mission is clear: lobby for increased Chinese investment in the U.S. and secure massive orders for American goods New York Post.

This trip marks a definitive repair in the Musk-Trump relationship after a public falling out in early 2025 New York Times. For Tesla, the stakes are high as the company navigates its massive Giga Shanghai footprint amidst a backdrop of trade imbalances and evolving AI regulations Bloomberg. Notably, Nvidia CEO Jensen Huang is missing from the list, highlighting the sensitive nature of high-end semiconductor trade with Beijing New York Post.

Double Trouble: Recalls Hit Cybertruck and Autonomy

Tesla’s engineering team is facing a busy week with two distinct recalls. The company is recalling 173 Cybertrucks equipped with 18-inch steel wheels due to concerns that rotor cracking could lead to wheel stud separation Los Angeles Times. Simultaneously, a much larger recall of 200,000 vehicles across the Model Y, S, X, and 3 lines has been initiated to address camera failures Los Angeles Times.

In the broader autonomy space, Alphabet’s Waymo is also in the hot seat. The company recalled its entire 3,800-unit robotaxi fleet after a vehicle drove into a flooded road in San Antonio on April 20 Insurance Journal. The software failed to recognize the depth of the water, highlighting a critical edge case for driverless tech Autoweek. Despite the recall, Waymo simultaneously announced it is opening its fully autonomous service to all users in San Antonio, Dallas, and Houston KENS5.

Market Watch

TSLA is currently trading in a volatile environment following a 4.53% drop to $424.85 at the last close. While the stock got a brief sentiment boost from the China delegation news, broader tech pressure and the discontinuation of high-margin models are weighing on the valuation.

Meanwhile, the AI trade continues to accelerate elsewhere. Nvidia hit a record intraday high of $219.44, bringing its market cap to a staggering $5.33 trillion TipRanks. Investors are also bracing for the blockbuster IPO of AI chipmaker Cerebras, which is looking to raise $4.8 billion in what could be the largest public debut of 2026 Yahoo Finance.