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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49 Articles
Tesla discontinues Model X and S vehicles as Elon Musk pivots to robotics
In the clearest sign yet that Tesla is pivoting away from its electric car business, CEO Elon Musk announced on Wednesday’s investor call that the company would discontinue production of its Model X SUV and Model S full-size sedan. “It’s time to basically bring the Model S and X programs ...
Tesla CEO Elon Musk to stop production of models S and X; convert Fremont factory to produce robots
Tesla's annual profit plunged to its lowest level since the pandemic five years ago. Now, Elon Musk said Tesla would be closing down production of two car models and convert the Fremont, California, factory to produce its Optimus robots.
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