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Tesla’s Q1 delivery results highlight the need for a Model S and Model X update
One of the most notable takeaways from Tesla’s Q1 2019 vehicle production and deliveries report was the steep decline in Model S and Model X sales. Over the course of the quarter, Tesla produced 14,150 Model S and X, a drastic drop from the 25,000 units that were manufactured last quarter. Deliveries of the flagship sedan and SUV also fell to 12,100 units. Under these circumstances, it appears that the time is now right for Tesla to start preparing for the release of an updated Model S and Model X.
A steep decline
Tesla did not provide a commentary behind the decline in Model S and X sales. This does not mean that the lower production and delivery figures of the vehicles were a complete surprise, as Tesla did shift a lot of its efforts in producing the Model S in favor of the Model 3 in Q1. The vehicles’ entry-level trim, the 75D variant, was also discontinued. Thus, the signs of a decline were already there. What was really surprising was the scope and gravity of the decline.
A possible explanation behind the Model S and Model X’s numbers in the first quarter may lie in the simple fact that the vehicles, particularly the full-size premium sedan, are getting long in the tooth. Tesla started producing the Model S in 2012, and the vehicle has pretty much stayed the same since then, save for a facelift when the Model X was released. Granted, improvements were rolled out to the Model S as soon as they were available, as noted by Elon Musk in a tweet, but design-wise, Tesla’s flagship sedan is still practically competing in the market with a nearly 7-year-old interior and exterior.
The Model 3’s immense success did not help the Model S’ case either. It should be noted that Tesla anti-sold the Model 3 after it was unveiled, with the company and Elon Musk asserting that the Model S was a superior vehicle. Now that the Model 3 is making a mark in several markets across the globe, it is becoming evident that the electric sedan is simply Tesla’s best bang-for-your-buck car. With Tesla’s latest hardware and batteries, the Model 3 is a solid choice. Other Model 3-specific features, such as Track Mode for the Performance variant, add to the vehicle’s attractiveness to car buyers.
The Model 3 is such a solid vehicle that it is starting to make the Model S a harder sell, at least in its present iteration. Granted, the Model S is larger, and it has more bells and whistles such as Smart Air Suspension and a second display, but these are luxuries that a significant number of car buyers will likely be willing to forego in exchange for savings associated with a Model 3 purchase. The Tesla Model Y appears set to do the same to the Model X as well, as the vehicle presents much of the premium SUV’s advantages in a smaller package, at a far more affordable price.
A better Model S and X in the Model 3 era
If Tesla wishes to rekindle the interest and justify the higher prices of its flagship sedan and SUV, it would be a good idea to introduce updated versions of the vehicles as soon as the company is able. These improvements can come in various forms, such as better range, significantly better performance, and a far more exquisite exterior and interior design. With these improvements in place, the Model S and X will not only have the advantage of larger cabin space and a handful of unique features over their more affordable stablemates. They will be vehicles that are truly, without a doubt, a class above the Model 3 (and the Model Y for that matter).
It’s not like Tesla does not seem to be preparing for a potential Model S and Model X update either. Last year, a patent application emerged depicting a Model S/X dashboard equipped with the Model 3’s clever and acclaimed HVAC system. Panasonic, Tesla’s battery partner, also announced last November that it is doubling down on its partnership with the electric car maker by bringing some of its Japan-based battery cell production activities to the United States.
In a statement to the Nikkei Asian Review, Panasonic stated that it will be bringing its operations that build the Model S and Model X’s 18650 cells over to a “US-based unit starting (next) April (2019).” Elon Musk noted during the Q4 earnings call that there are no plans to change the Model S and Model X’s batteries to 2170 cells. Perhaps improved 18650 cells are in order with Panasonic’s move to the US? One can hope.
At this point in Tesla’s history, it would probably be wise to temper expectations with regards to the Model S and Model X’s quarterly sales. Tesla is now at a point where it is pursuing the mass market, and the company is accomplishing this with the Model 3 (and later, the Model Y). The Model S and Model X will definitely still be the company’s flagships, but they will likely just see a sustained demand of perhaps 25,000 per quarter, and that’s completely fine. Both vehicles were brought to market to prove that electric cars can be better than their gasoline-powered counterparts. Both vehicles already accomplished their mission. The Model 3 and Model Y is proof of that.
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Elon Musk is, in many respects, one of the biggest and most influential figures in modern-day artificial intelligence.
Given that Tesla, SpaceX, and xAI are all looked at in their respective fields as leaders to an extent, each of them has a heavy influence on the future of AI, even though two of them are not thought of, at face value, as AI companies.
Musk has grand expectations for what is to come with AI, not only as a form of assistance to make human lives easier, but to make humans multiplanetary and solve some of the biggest issues that face us today. But even he is astounded by AI’s pace of progress.
He believes that in two years, AI will be so mind-blowing it might be unrecognizable.
Given that AI from 2 years ago feels so old that it should be in a museum, then obviously AI 2 years from now will be mind-blowing https://t.co/TcsKZ8o8OE
— Elon Musk (@elonmusk) July 30, 2026
This progress can be seen in a variety of ways, but perhaps the most popular way people have shown AI’s progress, especially on social media, is through an incredibly arbitrary way of watching Will Smith eat spaghetti:
The progression in AI of Will Smith eating spaghetti (2023 – 2026) pic.twitter.com/VDv82mB5gs
— internet hall of fame (@InternetH0F) February 10, 2026
This is a great way to show people how AI is improving, especially from a perspective that examines how it can manufacture images and video from prompts. AI is an incredibly complex concept, however, and it goes much deeper than Will Smith eating Italian food.
Musk’s most widely adopted method of AI is likely Tesla Full Self-Driving, which impacts millions of people as they utilize it to increase safety with their travel. Musk has routinely pushed incredibly aggressive timelines for self-driving, especially unsupervised.
Perhaps this perspective is why he feels that things will be solved in a timeframe that is much more aggressive than most of us would think. Regardless, the progress of AI is moving fast, and it seems that Musk’s expectations for it could be high.
But if it can actually achieve full-length motion pictures and even more realistic production value, it will be hard to distinguish between reality and AI very soon.
Tesla just officially confirmed it has built its 10 millionth car, a major milestone for the company that started producing sustainable electric powertrains less than two decades ago.
In that time, Tesla has truly revolutionized the automotive industry, disrupting the idea of what a car should be, how it should be fueled, and how it truly impacts day-to-day life.
10 million vehicles produced globally.
Congrats to all Tesla teams! pic.twitter.com/JkcraR63bs— Tesla Manufacturing (@gigafactories) July 30, 2026
Tesla achieved this feat across four production facilities: the Fremont Factory in Fremont, California, Gigafactory Shanghai in China, Gigafactory Berlin in Germany, and Gigafactory Texas in Austin, Texas.
The 10 millionth vehicle was a Diamond Black Model Y.
Over the course of the past roughly 18 years, Tesla has evolved its lineup from a sporty sedan built on a Lotus body to a lineup of various body styles, performance metrics, and other characteristics that make each one unique.
This is an incredible achievement for a company that is young compared to what it goes up against. When Tesla entered the automotive market, Ford, GM, and Stellantis widely dominated the playing field. Since then, Tesla has caused such a disruption that these three massive brands had to scramble to create EV projects of their own.
Despite their best efforts, they have not been able to match the prowess or the effectiveness of Tesla. They are all reliant on Tesla’s charging infrastructure, their software is inferior, and their self-driving projects are elementary in comparison.
Tesla felt its fair share of growing pains over the years as well. As recent at 2019, there were complaints about build quality, paint quality, and overall luxuriousness. These things have all been improved upon through the company’s maturity, and these strides in quality have led to this 10 million vehicle production achievement, something that other small-and-scrappy EV makers will hope to accomplish one day.
SpaceX just picked up another $1.6 billion from the Pentagon, with the U.S. Space Force awarding two task orders worth $1.6 billion to fly 18 Falcon 9 missions from Vandenberg Space Force Base in California through the end of 2027. The launches will carry satellites for the Space Based Sensing and Targeting portfolio, a set of programs meant to help the military detect and track airborne threats and relay that information across forces in near real time.
The award falls under National Security Space Launch Phase 3 Lane 1, the Space Force’s faster, commercial style procurement track for missions that do not require the military’s most demanding certification process. It is also the largest single order publicly disclosed under that program so far, and the first task order issued since the Space Force nearly tripled Lane 1’s contract ceiling from $5.6 billion to $17 billion on July 17.
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
Eric Zarybnisky, the Space Force’s acting portfolio acquisition executive for space access, said the entire process, from identifying the requirement to signing the contract, took about two months, including a month set aside for companies to prepare proposals.
SpaceX is not just launching these satellites. It already holds the contracts to build two of the programs within the same portfolio, $4.16 billion for the Space Based Airborne Moving Target Indicator system and $2.29 billion for the Space Data Network Backbone, which Teslarati covered in May. That means SpaceX is now responsible for both building key pieces of the military’s next generation sensing network and getting them into orbit.
With this latest award, SpaceX’s Pentagon contract total for 2026 alone tops $8 billion, adding to a defense portfolio that already includes the Golden Dome missile defense software group SpaceX joined in April and a string of GPS launches it inherited after ULA’s Vulcan rocket ran into a booster anomaly, which we detailed in March.
Lane 1’s vendor pool technically includes seven companies: SpaceX, ULA, Blue Origin, Rocket Lab, Stoke Space, Impulse Space, and Relativity Space. In practice, SpaceX remains the only provider with the combination of launch cadence, flight proven Falcon 9 hardware, and West Coast infrastructure to support a campaign requiring roughly one Vandenberg launch a month for the next year and a half.
Some lawmakers have flagged the growing concentration of national security launches with one company as a risk worth watching. For now, the Space Force keeps backing SpaceX, with it being the company that shows up ready to launch.
Elon Musk has a crazy prediction about AI in two years
Tesla just built it 10 millionth car
