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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.
Tesla CEO Elon Musk announced that the company will extend Cybertruck production slightly to handle its extensive order backlog.
On Wednesday, Musk announced that “In order to work through more of the Cybertruck order backlog, production will be extended through the end of summer 2027.”
In order to work through more of the Cybertruck order backlog, production will be extended through the end of summer 2027
— Elon Musk (@elonmusk) November 11, 2026
Tesla has already attempted to simplify its last months of production for the Cybertruck by eliminating several trim levels and only offering the Cyberbeast, the most expensive trim that starts at $109,990. The other two trim levels, the Cybertruck All-Wheel-Drive and Premium All-Wheel-Drive have both been discontinued.
There has been plenty of backlash against Tesla’s decision to ax the Cybertruck, but the company’s forecast prioritizes Cybercab and autonomy. Factory space at Gigafactory Texas that is not necessary is now being set aside for the Cybercab as the company truly embraces its “transportation-as-a-service” model.
There is still a slim chance the Cybertruck survives. Last evening, Tesla upfitter Unplugged Performance offered to take the Cybertruck line off of Tesla’s hands and continue building it, along with a CyberSUV.
Nevertheless, Tesla seems to be ending the Cybertruck on its terms after what will be a three-and-a-half-year run. It still does not really feel quite real; I think many of us thought the Cybertruck would be around for years to come.
Musk added more detail, stating that while it was not the smartest move, “there must be some room in this world for sentimentality or what’s the point?”
This is not the smartest move from a profit-maximizing standpoint btw, but there must be some room in this world for sentimentality or what’s the point?
— Elon Musk (@elonmusk) November 11, 2026
Other EV pickups on the market have experienced a similar fate.
The Ford F-150 Lightning was axed by the Detroit company due to the continued losses the company took from sales. That truck was never profitable, and Ford is still taking a quarterly loss in its EV side. However, things are moving along as it has plans for a mass market EV pickup, which will likely gather some substantial demand if Ford can get it just right.
Perhaps another extension or even a total change of heart might come. Only Musk knows.
In a sudden and closely watched milestone, Tesla Robotaxi has edged past Waymo on the Texas Department of Motor Vehicles automated vehicle registry. As of November 10, Tesla lists 1,302 registered vehicles under Tesla Robotaxi, LLC, compared with Waymo’s 1,297.
The flip is narrow, but real, according to the State’s books. Tesla’s Texas fleet, following an expansion on November 10, now consists of 729 Model Ys and 573 purpose-built Cybercab vehicles. Waymo’s roster is dominated by the Jaguar I-PACE and a growing number of Zeekr-based Ojai minivans.
NEW: Tesla Robotaxi just added 20 Tesla Model Ys to its fleet. The Texas fleet now stands at 1302 vehicles.
Live tracker: https://t.co/ri0WMLRhCQ
Tracker powered by @EVject
— Texas Autonomous Vehicle Tracker (@texasavtracker) November 10, 2026
Those figures come from the same public TxDMV automated vehicle listings that independent trackers have monitored since a Texas law required operators to disclose fleet sizes.
The scale of Tesla’s climb is pretty interesting and shows how much the company has grown its autonomous ride-hailing fleet over the past months. When the registry first became public in late May 2026, Tesla listed just 42 vehicles on it. Meanwhile, Waymo had several hundred vehicles registered to it.
Tesla CEO Elon Musk shades Waymo: ‘Never really had a chance’
Since then, Tesla has multiplied its authorized Texas fleet more than thirty times, driven by repeated Model Y additions and a steady build of Cybercabs. Waymo has also expanded, but at a slower pace than Tesla.
It is also important to note that registrations are not necessarily equal to operational fleet. The TxDMV list shows the number of vehicles each company is permitted to run, but it does not report how many are actively carrying riders, which cities they serve, or trip volume. Both companies stage vehicles and run mixed fleets that can include units in testing or temporarily offline.
A lead on the registry therefore signals capacity and regulatory positioning more than immediate ride volume.
Tesla has use the growing authorized fleet to expand its unsupervised service beyond the original Austin geofence area, as now it is flowing into cities like San Antonio and Dallas. The company has highlighted plans for a broader Cybercab deployment, eventually into new states and territories.
Waymo is operating across multiple Texas markets and in other areas of the United States.
Right now, the five-vehicle margin is thin and could reverse with the next large registration from either side. For the moment, however, the public Texas record shows Tesla holding the larger authorized Robotaxi fleet in the state.
Elon Musk
SpaceX just cleared a key FCC hurdle in its fight with Verizon and AT&T
The FCC accepted SpaceX’s bid for Grain’s 800 MHz spectrum, opening review for Starlink Mobile.
The Federal Communications Commission has formally opened its review of SpaceX’s plan to buy a nationwide block of 800 MHz spectrum from Grain Management, moving Starlink Mobile one step closer to operating as a full U.S. wireless carrier.
In a public notice issued Tuesday, the FCC’s Wireless Telecommunications Bureau said it accepted for filing the applications to transfer control of two Grain license companies, Prism License Co. 1 and Prism License Co. 2, to Starlink Spectrum Holdings, a wholly owned SpaceX subsidiary. The deal covers 546 paired licenses across 3,224 counties, reaching roughly 100% of the U.S. population in all 50 states, Washington, D.C., Puerto Rico and the U.S. Virgin Islands. The proceeding sits under WT Docket No. 26-313.
Acceptance is not approval. It means the applications cleared an initial review and the public comment window is now open. Comments and petitions to deny are due December 1, and oppositions are due December 8. The bureau also said the conditions attached to Grain’s July purchase of the licenses from T-Mobile, which require rapid buildout for terrestrial and direct to device service, would carry over to SpaceX if the transfer is approved.
SpaceX announced the agreement on October 8, saying the new airwaves would let Starlink Mobile’s signal reach phones inside buildings, something its 2 GHz spectrum from EchoStar cannot do as well. The portfolio includes up to 14 MHz of paired spectrum in the 817 to 824 MHz and 862 to 869 MHz bands, which most existing phones already support. Elon Musk called it “the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America.”
According to the filing, SpaceX would hold up to 89 MHz of total spectrum in any given market after the deal closes, including up to 14 MHz below 1 GHz. That is far under the 385 MHz threshold the FCC uses to flag a transaction for closer competitive scrutiny, and well short of the roughly 300 MHz each of AT&T, Verizon and T-Mobile holds.
Tuesday’s notice does not decide how SpaceX can use the spectrum from orbit. A separate application SpaceX filed on October 27 seeking authority to provide supplemental coverage from space on the same frequencies, along with related waiver requests, is still pending before the commission.
The ground network is already taking shape. Last week, SpaceX picked Qualcomm to supply radios, baseband units and software for a nationwide 5G build, with deployment across tens of thousands of U.S. cell sites starting in 2027. The FCC also voted on October 29 to advance a proposal opening another 482 MHz to direct to device service, though AT&T, Verizon and T-Mobile hacritive pushed to strip nearly 300 MHz from it. SpaceX President Gwynne Shotwell has said service on SpaceX’s own airwaves is targeted for early 2028.
Tesla extends Cybertruck production as Musk concedes ‘sentimentality’
Tesla overtakes Waymo in Texas as Robotaxi fleet performs shock flip
