Summary
Tesla plans to end production of the Model S and Model X in the second quarter and convert their Fremont, California, factory space to build Optimus humanoid robots, according to Car and Driver’s account of Tesla’s fourth-quarter earnings call. The move retires Tesla’s two longest-running flagships and signals a strategic shift toward autonomous systems and artificial intelligence.
Key details
- End of Model S/X in Q2: Production wind-down is slated to conclude in the second quarter, after which the Fremont line will be retooled for Optimus.
- Fremont to Optimus robots: Repurposing the Model S/X footprint suggests Tesla will leverage existing assembly expertise and supply chain relationships for robotics.
- Scale ambitions: The article reports Elon Musk is targeting production of one million Optimus robots per year once the program scales (the article characterizes this as an ambitious goal).
- Model lineage: Model S debuted in 2012; Model X followed in 2016. Both were refreshed last year but reportedly saw steady sales declines as prices rose.
- Strategic pivot: Car and Driver frames the plan as part of Tesla’s evolution from a traditional automaker to a company centered on autonomy, AI, and humanoid robots.
Implications
- Product mix simplification as two premium, lower-volume flagships exit.
- Resource reallocation concentrates engineering and assembly on autonomy, AI training, and robotics.
- Potential transfer of EV manufacturing competencies—high-volume assembly, electronics integration, software—to robotics production.
Timeline and unknowns
- No detailed schedule beyond the second-quarter stop date was included in the article.
- The article did not specify when robot production would begin or at what initial volume.
- Operational details—service and parts support for S/X owners, inventory levels, or short final batches—were not addressed.
Context on Model S and Model X
Car and Driver describes the Model S as pivotal in making EVs more desirable and establishing expectations for range and performance, while the Model X added a second premium entry with distinctive gullwing-style rear doors. Ending both in the same window underscores the scale and speed of Tesla’s stated pivot.
What to watch next
- Official confirmation of the production halt timing and final S/X inventory strategy.
- Fremont retooling milestones and early Optimus manufacturing setup.
- Further guidance on Optimus ramp plans, including initial volumes and workforce changes.
