Tesla and the lesson for the industry: why cutting "winning" models might make sense

settembre 03, 2025

Why did Tesla decide to cut “winning” models like the Model S and Model X?
The answer can teach you a lot if you work in the production of gears and transmissions.

In July 2025, Tesla stopped taking orders for the Model S and X in Europe, after doing the same in China in April. Two technological icons, with high margins, set aside. Madness? Perhaps the opposite. It is the sign of a paradigm shift: less variety, more platforms, more software.

The old logic: the hero product

For years, the automotive industry followed a consolidated scheme: low-volume/high-margin flagships, a supporting mid-range, and limited economies of scale.
The Model S was the perfect example: a “hero” product around which dedicated processes were built.

Today, however, this logic shows its limits. Excessive variety generates complexity, long lead times, high scrap rates. An obstacle for anyone wanting to grow in a global market increasingly oriented toward efficiency.

The new logic: platform and services

Tesla is changing the scheme and simplifying. In Europe, Model S and X are only available from stock; in China, new orders have stopped. The focus shifts to common platforms like Model 3 and Y, optimized for volume.

The value moves from hardware to software and services: ADAS, FSD, connectivity, aftersales packages. In the USA, S and X remain on the list, but integrated with premium services. The goal is no longer to sell a single product, but to build a system of value.

If you produce gears and transmissions, this strategy carries a clear message.
Fewer variants mean more production capacity, standardized platforms, and reduced lead times. Replicable designs, common specifications, and faster setups ensure more stable margins.

Value does not stop at the component: services such as digital traceability, vibro-acoustic testing, and predictive maintenance strengthen customer loyalty. In addition, adopting a design-to-manufacture approach from the start reduces errors and improves quality.

A real case: from 120 almost identical codes to 25 platform variants. Same blanks, same base teeth, shared tooling.
The result? Modular BOM, shared heat treatment cycles, family control plans. Less rework, shorter times, more predictable margins.

Tesla does not archive the S and X because they are worthless, but because a new logic is needed. The priority becomes: less variety, more volume, more software.

What services can you build around your production to create more value?

👉 Discover it at Agritechnica 2025, where GSI Ingranaggi will present its solutions for next-generation gears and transmissions. Contact us to schedule a meeting at the fair.

BLOG CATEGORIES

Blog

MECHANICS IN PILLS

LAST NEWS FROM MECHANICS

Tesla and the lesson for the industry: why cutting "winning" models might make sense

The old logic: the hero product

The new logic: platform and services

ARCHIVES PAGE

BLOG CATEGORIES