Jan. 31, 2026 | Weekend Drive: Tesla ditches Model S/X; 2026 NADA preview
About this episode
Elon Musk's announcement to end production of the Tesla Model S and Model X to make way for a humanoid robot assembly line has sparked a lively discussion among automotive experts. The team reflects on the significance of these models in Tesla's history and the implications of shifting focus towards AI and robotics. Additionally, they analyze Hyundai's decision to discontinue the Santa Cruz pickup after disappointing sales and preview the upcoming NADA show, highlighting dealer concerns about economic uncertainty and vehicle affordability.
Automotive News' Larry P. Vellequette and Michael Martinez discuss Tesla ending Model S and Model X production for Optimus robots, Hyundai axing the Santa Cruz after one generation, and what to expect at next week's NADA Show in Las Vegas—from dealer sentiment trends to the biggest issues facing retailers in 2026.
energy storage system batteries
"It's all part of their pivot away from EV batteries to energy storage system batteries. They built a bunch of battery plants and now the EV demand isn't there."
Energy storage system batteries are like big batteries that hold energy for later use. They can be used in electric cars and to store energy from sources like solar panels.
Energy storage system batteries are designed to store energy for later use, often used in renewable energy applications and electric vehicles. This pivot indicates a shift in Ford's strategy to adapt to changing market demands.
EV batteries
"It's all part of their pivot away from EV batteries to energy storage system batteries. They built a bunch of battery plants and now the EV demand isn't there."
EV batteries are special batteries used in electric cars to make them run. They store electricity that powers the car instead of using gasoline.
EV batteries are specifically designed to power electric vehicles, providing the necessary energy for propulsion. The demand for these batteries is closely tied to the popularity of electric vehicles in the market.
Volkswagen
"Number two, Volkswagen, that Delta grew a little bit, and then with Hyundai is number three..."
Volkswagen is a car company from Germany that makes popular cars like the Beetle and Golf. They are one of the biggest car makers in the world.
Volkswagen is a German automotive manufacturer famous for its iconic models like the Beetle and Golf. It is one of the largest car manufacturers in the world, competing closely with Toyota.
Tesla Model S
"... this week that Tesla is ending production of the Model S and Model X next quarter to convert the Fremont ..."
Tesla Model X
"...hat Tesla is ending production of the Model S and Model X next quarter to convert the Fremont factory spac..."
The Tesla Model X is a big electric car that can carry a lot of people and has cool doors that open upwards. It's important because it shows how electric cars can be both fun to drive and practical, but now Tesla is stopping its production to make room for new cars.
The Tesla Model X is an all-electric SUV known for its distinctive falcon-wing doors and impressive performance. It has been significant in popularizing electric vehicles and showcasing Tesla's innovative technology. The discussion around its production ending highlights the company's shift in focus towards newer models and production efficiency.
electric vehicles (EVs)
"But on the other hand, it doesn't really make a lot of sense to me because I get that Tesla is trying to pivot to become an AI company and a robotics company. But I just don't know that you can bank on the Optimus robot being so successful that you'll need millions and millions of units per year and all that factory space in Fremont. So I understand getting rid of the S and X. They're selling horribly, their time has sort of passed. And we can talk a bit, they were landmark products that will be remembered in automotive history, particularly the S for getting everybody else to think seriously about"
Electric vehicles, or EVs, are cars that run on electricity instead of gas. They are better for the environment and are becoming more common as technology improves.
Electric vehicles (EVs) are cars that are powered entirely or partially by electricity instead of traditional gasoline or diesel. They are becoming increasingly popular due to their lower environmental impact and advancements in battery technology.
Tesla Model 3
"The three was even more of a smash hit than the S when it first came out."
The Tesla Model 3 is a less expensive electric car compared to the Model S and Model X. It's popular because it offers good performance and features at a lower price.
The Tesla Model 3 is a more affordable electric sedan aimed at the mass market. It has quickly become one of the best-selling electric vehicles due to its combination of price, performance, and technology.
Tesla Cybertruck
"... standpoint, I would have given the Ziggy to the Cybertruck before I would have given it to the S. But I get ..."
The Tesla Cybertruck is a new electric truck that looks very different from regular trucks, with a sharp, futuristic design. It's exciting because it shows that electric vehicles can also be tough and useful, and it's trying to change how people think about trucks.
The Tesla Cybertruck is an all-electric pickup truck that features a unique angular design and is built for durability and utility. Its introduction has generated significant buzz due to its unconventional look and Tesla's promise of high performance and advanced technology. The Cybertruck represents a bold step into the truck market for Tesla, aiming to compete with traditional gas-powered trucks.
Hyundai Santa Cruz
"Let's talk about Hyundai. So the company is getting rid of the Santa Cruz compact pickup just after one generation, sales plunged 20% last year to 25,500 units, outsold 61 by Ford's Maverick."
The Santa Cruz is a small pickup truck made by Hyundai. It is designed to be useful like a truck but also comfortable like an SUV, making it a good option for people who want both features.
The Hyundai Santa Cruz is a compact pickup truck that combines the utility of a truck with the comfort of an SUV. It was designed to appeal to a younger audience looking for versatility in their vehicle.
Ford Maverick
"...outsold 61 by Ford's Maverick."
The Maverick is a small pickup truck made by Ford. It's designed to be affordable and fuel-efficient, making it a good choice for people who want a truck without spending too much money.
The Ford Maverick is a compact pickup truck that was introduced as a more affordable and fuel-efficient option in the truck market. It aims to attract buyers looking for practicality without the larger size of traditional pickups.
DIYers
"...tap into the young hip city dwelling DIYers, people that liked to mess with their vehicles when they needed to go to Home Depot..."
DIYers are people who like to do things themselves instead of paying someone else. In cars, this means they might want to customize or fix their vehicles on their own.
DIYers, or 'do-it-yourselfers', are individuals who prefer to build, modify, or repair things on their own rather than hiring professionals. This concept is particularly relevant in automotive contexts where customization and personal projects are common.
Subaru Brat
"okay, North America is a pickup market. We need a pickup. Let's redo the Subaru brat, right? Because that's what the Santa Cruz is, right?"
The Subaru Brat is a small pickup truck made by Subaru. It was popular for its unusual design, which included seats in the back of the truck bed.
The Subaru Brat is a compact pickup truck produced by Subaru from 1978 to 1994. It is known for its unique design, featuring rear-facing jump seats in the bed, which made it stand out in the market.
Ford Ranger
"... probably going to be more like Maverick size and Ranger. So maybe that wouldn't be a good comparison. Bu..."
The Ford Ranger is a medium-sized truck that can be used for work or fun, like carrying stuff or going off-road. It's popular because it's strong and can handle different jobs, and people often compare its size to other trucks.
The Ford Ranger is a midsize pickup truck known for its versatility and capability, making it a popular choice for both work and recreational use. It has a reputation for being durable and efficient, appealing to those who need a reliable vehicle for various tasks. The mention of its size in comparison to other models highlights the ongoing evolution of the truck market.
midsize truck
"...we have a new midsize EV coming that's probably going to be more like Maverick size and Ranger."
A midsize truck is a type of pickup truck that is not too big or too small, making it easier to drive and park while still being useful for carrying things.
A midsize truck is a vehicle that is larger than a compact truck but smaller than a full-size truck, offering a balance of size, capability, and fuel efficiency.
Toyota Tacoma
"...he midsize truck market. And that, with, I mean, Tacomas and Ranger, I'm imminently familiar with, they ha..."
The Toyota Tacoma is a popular medium-sized truck that many people love for its ability to go off-road and its long-lasting quality. It's a good choice for those who want a truck that can handle tough conditions and still be reliable over time.
The Toyota Tacoma is a well-regarded midsize pickup truck known for its off-road capabilities and reliability. It has a strong following among truck enthusiasts and is often praised for its durability and resale value. The Tacoma's significance in the midsize truck market makes it a frequent topic of discussion among automotive enthusiasts.
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