Tesla Shifts Focus from Model S/X to Optimus Robot Production
Tesla Inc. is discontinuing production of its Model S sedan and Model X SUV, the company's oldest vehicles after the Roadster, to repurpose its Fremont factory for manufacturing Optimus humanoid robots. The MOVE comes as these legacy models accounted for just 3% of Tesla's 1.59 million vehicle deliveries in 2025.
The California production lines will be converted to support an annual capacity of 1 million Optimus units, with a third-generation model slated for unveiling in Q1 2026. Elon Musk framed the decision as necessary for Tesla's autonomous future during Wednesday's earnings call, which revealed the company's first annual revenue decline on record.