Tesla has ended production of its Model S and Model X vehicles at the Fremont, California factory, closing a 14-year chapter for the electric-car maker. The company is now shifting its assembly lines toward building the Optimus humanoid robot, marking a strategic pivot that executives say is necessary for long-term innovation — but one that could reshape near-term revenue.
End of an era at Fremont
The Model S first rolled off the Fremont line in 2012, and the Model X followed in 2015. Together, they established Tesla as a luxury EV player and helped fund the mass-market Model 3 and Model Y. But both models had seen declining sales in recent years as buyers gravitated toward the cheaper, newer vehicles. The Fremont factory, which also builds the Model 3 and Model Y, will now dedicate floor space to the Optimus robot program — a project Tesla first teased in 2021.
No official production numbers for the final batch of Model S or Model X units have been released, and Tesla has not confirmed whether it will sell remaining inventory from its lots.
The Optimus robot shift
Optimus, also called the Tesla Bot, is a general-purpose humanoid robot designed to handle repetitive tasks. Tesla has shown prototypes walking, carrying boxes, and performing simple factory work. CEO Elon Musk has said the robot could eventually be sold to other companies and even to households. By moving production resources from cars to robots, Tesla is betting that automation hardware will become a major revenue stream — potentially larger than vehicles.
The company has not disclosed how many Optimus units it plans to build in the coming months, nor whether the Fremont line will run at full capacity from day one. What is clear is that the shift ends the longest continuous production run of any Tesla model.
Revenue impact ahead
The Model S and Model X carry higher price tags — often above $80,000 — meaning their absence will leave a gap in Tesla's profit mix. The Optimus robot's price hasn't been announced, but Musk has suggested it could cost less than a car. Analysts following the company expect the transition to weigh on earnings at least until robot production scales up. Tesla itself has described the pivot as a “strategic reallocation toward innovation,” acknowledging that near-term revenue streams will change.
The company’s next quarterly report will be the first to show results without Model S or X sales. Investors will look for clues on how fast Optimus can fill that hole — and whether the Fremont factory's retooling delivers the robots on schedule.
