Tesla To Retire Model S and Model X To Prioritize Optimus Robot Production
The automotive pioneer is shifting its Fremont facility toward a robotics-first future.
Summary
- Tesla will officially end production of its flagship Model S and Model X vehicles by the second quarter of 2026
- The manufacturing lines at the Fremont factory are set to be repurposed for the mass production of Optimus humanoid robots
- Elon Musk confirmed the decision during the Q4 2025 earnings call as part of a strategic pivot toward an autonomous future
Tesla is officially retiring its longest-running vehicle programs, the Tesla Model S and Tesla Model X, to make room for the next generation of humanoid robotics. As per The Verge, CEO Elon Musk announced during the company’s recent earnings report that the flagship sedan and SUV will receive an “honorable discharge” as the Fremont, California, factory transitions its assembly lines to focus on the Optimus robot. This pivot marks a significant turning point for the brand, moving away from the luxury EVs that first established its market dominance in favor of AI-driven hardware and autonomous technology.
The decision comes as sales for the aging flagship models have seen a steady decline, now accounting for less than three percent of the company’s total delivery volume. While the Model S revolutionized the electric sedan market upon its 2012 debut and the Model X brought falcon-wing doors to the luxury SUV segment in 2015, the brand’s focus has shifted toward high-volume movers like the Model 3 and Model Y.
By repurposing the Fremont facility, Tesla aims to establish a manufacturing capacity of one million Optimus units annually. The move is described by leadership not as a retreat from the market, but as a necessary reallocation of resources to support a future built on autonomy. While the production of these legacy vehicles is winding down, the company has committed to providing long-term service and parts support for existing owners. This transition signals Tesla’s evolution from a traditional automaker into a dedicated robotics and AI enterprise.
The final production units of the Model S and Model X are expected to roll off the line by the end of June 2026.
