Tesla’s official X account in Japan has announced that the Japanese market’s Model S and Model X production will cease on March 31, 2025. Starting April 1, Tesla will only sell existing stock and used cars, and new car customization orders will no longer be accepted.
Tesla Model S and Model X: No Global Discontinuation Yet
Despite this move, Tesla’s vice president of automotive engineering, Lars Moravy, reassured earlier this year that the Model S and Model X are not being removed from Tesla’s global lineup. He hinted at upcoming technology upgrades for both models, stating:
“Hold on, we’ll be moving soon. That upgrade a few years ago was much bigger than most people thought regarding vehicle architecture and structure. But later this year, we’ll keep an eye on them again to ensure they also get some of the technology upgrades we’ve invested in Model 3 and Model Y.”
This confirms that Tesla is not discontinuing Model S and Model X worldwide but is making strategic market adjustments in Japan.
Why is Tesla Struggling in Japan?
Elon Musk has previously expressed frustration over Tesla’s weak performance in Japan. During an earnings call last year, he openly admitted:
“In some regions, our market share is very low, such as Japan. We should at least have a market share commensurate with other non-Japanese automakers, such as Mercedes-Benz or BMW, which is not the case at the moment.”
Musk believes Tesla’s low adoption rate in Japan is due to a “lack of awareness” rather than a lack of demand. He even predicted that Japan could become Tesla’s largest market outside the U.S., provided the brand gains more substantial local recognition.
What’s Next for Tesla in Japan?
With Tesla discontinuing Model S and Model X production for Japan, the company might focus more on:
✔ Expanding Model 3 and Model Y sales that have seen more tremendous success in Asian markets.
✔ Improving charging infrastructure to boost EV adoption.
✔ Enhancing Tesla’s brand awareness through marketing campaigns and partnerships.
This strategic shift aligns with Tesla’s broader vision of pushing mass-market EVs, such as the Model 3 and Model Y, over premium offerings in price-sensitive markets.
