Tesla Converting Model S/X Factory Space for Optimus Robot Production

Tesla is shutting down its Model S and Model X production lines this year—and robots are taking over the factory floor.

The company confirmed that the Fremont, California facility where the Model S and Model X have been built for over a decade will be converted to manufacture Optimus humanoid robots. Production of Tesla’s flagship sedan and SUV ends in Q2 2026.

From National Today:

Tesla is planning to shutter its Model S and Model X electric vehicle lines this year and use the factory space in its Fremont, California facility for production of the Optimus humanoid robot.

CEO Elon Musk addressed the decision directly during Tesla’s Q4 2025 earnings call: “We are going to convert that production space to an Optimus factory. It’s part of our overall shift to an autonomous future.”

This bot got hands https://t.co/0zDxXJ8DsN

— Elon Musk (@elonmusk) February 14, 2026

The math behind the decision is straightforward. Over 97% of Tesla’s vehicle deliveries in Q4 2025 were Model 3 and Model Y. The flagship vehicles have become a small fraction of Tesla’s business while requiring dedicated factory space.

Musk has ambitious visions for Optimus. He sees the robots handling everything from household chores to caring for the elderly and children. More immediately, Tesla plans to deploy them in its own factories.

From The Motley Fool:

Tesla is so invested in making the Optimus a reality that the company is planning to shutter its Model S and Model X electric vehicle lines this year and use the factory space in Tesla’s Fremont, California, facility for Optimus production.

The timeline for consumer Optimus robots is further out. Musk doesn’t expect them to be available for purchase by the general public until the second half of 2027. Early production will focus on internal use.

Analysts are paying attention. Wedbush Securities’ Dan Ives said Tesla’s focus on real-world AI development “makes it the best physical AI company in the world and will change how investors value the company.”

Some projections suggest Optimus could help push Tesla to a $2 trillion market cap by end of 2026 and $3 trillion by 2027—if the robotics bet pays off.

The Model S and Model X deserve credit for what they accomplished. They made electric vehicles aspirational, proved EVs could outperform gas cars, and built Tesla’s reputation as a serious automaker. Their legacy will continue in the technology they pioneered.

But Tesla is betting its future on robots now, not sedans.