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The Model S and Model X have recently come under scrutiny as their sales figures dwindle. Herbert pointed out that the time may have come for Tesla to reconsider its commitment to producing these models. The high-price luxury segment in which these vehicles operate is becoming increasingly crowded, especially with Rivian shifting focus towards alternatives in their specific price range.
Herbert speculated about potentially discontinuing the Model S and X in favor of investing resources into the more profitable Model 3 and Model Y lines, which are experiencing much stronger demand. Despite their impressive performance attributes—like the Model S's long-range capability—the overall sales figures suggest diminishing returns on investment for these older models.