Tesla Shifts Production from Model S and X to Humanoid Robots
Tesla CEO Elon Musk made a groundbreaking announcement on Wednesday. The electric vehicle giant will halt production of its Model S sedan and Model X SUV in the second quarter of 2026. Instead, the Fremont, California factory will be repurposed to manufacture Optimus humanoid robots.
Musk revealed this strategic move during Tesla’s fourth-quarter earnings call. The decision is a significant part of the company’s shift towards an “autonomous future” that extends beyond traditional vehicles. Tesla aims to churn out up to 1 million Optimus robots annually at the facility. The third-generation Optimus, set to debut this quarter, is Tesla’s first design intended for mass production.
The Model S and Model X have been Tesla’s flagship luxury vehicles for over a decade. However, they account for only about 3% of the company’s total sales. The Fremont factory will continue producing Model 3 and Model Y vehicles, which represented a whopping 97% of Tesla’s deliveries in 2025. Tesla plans to maintain the current vehicle throughput at the plant while significantly increasing headcount for robot production.
The announcement coincided with Tesla’s report of a net income of $3.79 billion for 2025, a 46% drop from 2024. Musk emphasized that the Optimus robots, along with robotaxis and Full Self-Driving technology, will be Tesla’s key value drivers moving forward. Current Model S and X owners can still expect support, but Musk advised those interested in purchasing to “order now”.
Source: CNBC