Tesla just gave away the plans for its recently canceled Model S and X vehicles.

It feels like a strange decision. Is CEO Elon Musk pulling a power move, daring the industry to build his products? Probably not.

"Just as Tesla made the original Roadster design and software open source, we plan to do the same with Model S & X," tweeted Musk on Friday afternoon. Tesla didn't respond to a request to comment about the decision.

Tesla recently stopped producing the Model S and X high-end luxury EVs, ripping out the automotive production capacity in Fremont, Calif., to put in capacity to make humanoid robots, which Musk believes will "be the biggest product ever." (Everyone wants their own C-3PO and R2-D2.)

It's sad to see the S go. The luxury sedan was introduced in 2012, and its importance cannot be overstated. It was the first EV that was a great car, not just a great electric car.

But now, anyone can build an S or X. Open source comes from the software business and generally means the software is public and free to use, modify, or redistribute.

Will they build it? Of course not. Plans and software are one thing. Billions of dollars in tooling and manufacturing equipment are another, not to mention the expertise Tesla has built over years in materials science. And don't forget that to build a car profitably, companies need relationships with suppliers to ensure part cost and quality.

Car companies need volume, too. The Model S and X are lower-volume vehicles. Tesla sold roughly 30,00o in 2025 compared with 1.6 million Model 3 and Y vehicles. The market for cars that can cost $100,000 or more is simply small.

So no knockoff version of a Model X from Tezla is coming soon.

Going open source does have potential automotive benefits -- for Tesla and the industry. For starters, it can ensure that Model S and X can get parts and service long after Tesla stops making them. And competitors might be able to glean some design tidbits from the designs. (But they also get those by tearing down competitor vehicles.)

Coming into Monday trading, Tesla stock was down about 30% year to date. The decision to stop making the S and X didn't do it. Investors are happy Tesla is pivoting into AI applications such as robots and robotics.

What investors want is more progress on the AI front. Tesla launched an AI-trained robo-taxi service in Austin, Texas, in June 2025. Scaling the service has been slow. And investors are still waiting to see the latest version of Tesla's humanoid robot, Optimus.

Robo-taxi and robot developments, even more than EV news, will drive Tesla stock in the coming months.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

July 26, 2026 12:01 ET (16:01 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.