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Elon Musk says Tesla ending Models S and X production, converting Fremont factory lines to make Optimus robots

Tesla will cease Model S and X production by Q2 2026 to repurpose Fremont factory capacity for Optimus robot manufacturing amid declining sales below 50,000 units.

  • Elon Musk, Tesla CEO, announced the company will end Model S and Model X production and convert Fremont factory lines to build Optimus, Tesla's planned humanoid robot.
  • Deliveries fell over 30% year‑over‑year, with Tesla grouping Model S and Model X into an "other models" category and global sales dropping below 50,000 by late 2024.
  • Just seven months ago, Tesla launched a mild update to the Model S and Model X, and the June refresh added a $5,000 price increase to $84,990 and $89,990 respectively.
  • Fremont's 100,000-unit capacity had been operating at a fraction, so Tesla decided low-volume S/X production added complexity and repurposed capacity for other products.
  • As rivals closed the gap, the Model S and Model X helped establish Tesla and funded mass-market models, but Lucid Air and Rivian R1S have overtaken these segments.
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Tesla Kills Models S and X

Outta here, cars! Tesla has to make room for promises of an automated, robotic future.

·United States
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The Business Journals broke the news in United States on Wednesday, January 28, 2026.
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