Tesla shares rose 1% in premarket trading on Wednesday, but the bigger story is what the company is leaving behind. After 14 years, Tesla has ended production of its flagship Model S and Model X and now uses its Fremont, California, plant to build humanoid robots. The last Signature editions are being delivered this month. Here’s what this means for the high-end EV market and why Mercedes-Benz is stepping in.
The Model S was more than just another car; it proved that electric vehicles could be desirable. The Plaid version, launched in 2021, could hit 60 mph in about two seconds and set new EV performance standards. Ending production marks a shift in Tesla’s strategy, from premium cars to AI and robotics.
Mercedes-Benz moved quickly. Tuesday evening, it closed part of a Los Angeles highway to reveal the Mercedes AMG GT four-door coupe, a 2027 model on sale in late 2026. With three axial flux motors delivering 1,153 horsepower, it matches the Model S Plaid’s zero-to-60 time of about two seconds. Charging can take just 10 minutes. Software can also mimic a V-8 engine feel for drivers who want it.
The axial flux motor design places the electromagnetic field parallel to the motor’s axis, unlike traditional motors, where it is perpendicular. This enables more power and torque in a compact motor.
Mercedes-Benz has not announced pricing, but buyers can expect to pay over $100,000. The market for EVs in this range is small, and ending the $7,500 federal tax credit in September removed a key incentive. U.S. EV sales fell 27% year over year in the first quarter.
Tesla investors likely won’t focus on new competition. The stock is down 10% this year but up 18% over the past 12 months. Most no longer see Tesla as just a car company; they watch its robotics and AI progress.
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