Tesla to End Model S and Model X Production as Fremont Plant Shifts to Optimus Robot Lines
Tesla will end production of the Model S and Model X by the end of Q2 2026 as its Fremont factory is repurposed to build Optimus humanoid robots, marking a strategic pivot toward autonomy and robotics amid declining legacy-model sales.
- End of production: Elon Musk said the Model S and Model X programs will be wound down next quarter and end by the close of Q2 2026 — Fox Business.
- Factory repurpose: Fremont lines that supported about 100,000 units of annual S/X capacity will be redirected to Optimus robot production — reporting by Electrek and Fox Business.
- Financials & sales: Q4 revenue was $24.9 billion (down 3% YoY) and full-year 2025 revenue was $94.8 billion (down 3%) as Tesla faces slipping deliveries and weaker demand for legacy models — Fox Business.
Announcement and timeline
On the company’s Q4 2025 earnings call on Jan. 28, 2026, CEO Elon Musk confirmed plans to end the Model S and Model X programs. He said:
“It’s time to basically bring the Model S and X programs to an end with an honorable discharge. If you’re interested in buying a Model S and X, now would be the time to order it.”
The announcement indicated production will begin winding down in Q1 2026 and stop by the end of Q2 2026 (March–June). Musk added there are no planned direct replacements for these legacy models as Tesla pivots toward autonomy and robotics (Fox Business; Edmunds).
Financial and sales context
Tesla reported Q4 revenue of $24.9 billion, down 3% year-over-year, and full-year 2025 revenue of $94.8 billion, also down 3% (Fox Business).
EV sales for Q4 fell about 16% year-over-year, with full-year deliveries near 1.64 million vehicles (down roughly 9%). The Model S and Model X accounted for a small share of 2025 deliveries: the “Other Models” category — including S, X, Cybertruck and Semi — totaled about 50,850 units in 2025, with the S and X believed to be roughly 30,000 of that total. Quarterly “Other Models” deliveries fell from 23,640 in Q4 2024 to 11,642 in Q4 2025 (Electrek).
Tesla had earlier reduced prices and introduced a modest mid-2025 refresh for the S and X, but sales continued to slump, prompting a re-evaluation of factory usage and product strategy (Electrek).
Fremont factory repurpose and Optimus Robot Production
Tesla plans to repurpose lines at the Fremont, California, plant that supported Model S and Model X production — roughly a capacity of 100,000 units annually for those models — to support Optimus humanoid robot manufacturing. Reporting indicates the company will ramp multiple new production lines, with plans to “ramp six new production lines” and invest in the infrastructure needed for autonomous robots and clean energy (Electrek; Fox Business).
Tesla has publicly discussed ambitious long-term targets for Optimus — in some company materials and commentary, scenarios reach up to 1 million units annually — though achieving that would require dramatic scale-up in manufacturing, supply chains and market demand (Electrek; Fox Business).
Tesla said it expects to introduce a third-generation Optimus design aimed at mass production and will develop a new supply chain and production approach tailored to robotics rather than simply transplanting vehicle manufacturing methods (Fox Business).
Historical significance
The Model S (launched 2012) and Model X (launched 2015) were Tesla’s early flagships. They helped establish performance, range expectations, and Tesla’s consumer profile in the EV market. Ending production has been widely described as an “end of an era” for the company’s original luxury models (Fox Business; Electrek).
Coverage and market reaction
Business and automotive outlets quickly reported the earnings call and Musk’s comments, including Fox Business, Electrek, Edmunds, Autoblog, and CarBuzz. Community forums such as Tesla Motors Club and video analysis (e.g., a Jan. 29 discussion on YouTube) circulated commentary and implications.
Investigative questions and risks
- Job impact and transitions: Repurposing Fremont lines raises workforce questions: will Tesla offer retraining for assembly workers as roles shift from vehicle assembly to robotics production? The staffing and skill set needs may differ significantly (Fox Business).
- Demand uncertainty: Automobiles are an established market; Optimus humanoid robots remain largely unproven at scale. Can Tesla convert factory capacity into a profitable robotics business without undermining shareholder value? (Electrek).
- Capital allocation & returns: With revenue and deliveries under pressure, investors will watch whether investments in robot production deliver long-term returns and disciplined execution (Fox Business).
- Supply chain scaling: Meeting large Optimus targets would require new suppliers and electronics beyond today’s automotive supply chain; Tesla acknowledges plans for a new supply chain for third-generation Optimus hardware.
Implications for the United States
Economic impact: Fremont’s repurpose could create technical robotics roles in assembly, software and maintenance, but timing and scale are uncertain. If robotics lines are more capital-intensive and less labor-heavy, net employment could decline (Fox Business).
Regional supply chains: Northern California suppliers for S/X may need to adapt or risk losing business, while new suppliers for robotics components and sensors could benefit (Electrek).
Consumer choice and competition: Fewer Tesla S and X models may narrow high-end EV options, potentially boosting opportunities for traditional automakers and luxury brands (Edmunds).
Fiscal oversight and national implications: Lawmakers, investors and regulators will likely press for clear metrics and timelines on Fremont’s repurpose. Success could strengthen U.S. advanced manufacturing; failure would underscore risks of pivoting from proven products without clear demand for the new ones (Electrek; Fox Business).
Sources
- Fox Business — Tesla ends production of Model S and Model X to focus on robots, 2026
- Electrek — Elon Musk kills Model S and X as Tesla pivots to autonomy/Optimus, Jan. 28, 2026
- Edmunds — Tesla Model S and Model X dead, coverage
- Autoblog — Reporting on Tesla discontinuation
- CarBuzz — Tesla Model S and X production ending
- Tesla Motors Club forum thread — Community reporting and discussion
- YouTube — Matt Maran Motoring discussion on phase-out (Jan. 29, 2026)
Reporting compiled from the sources above and Tesla’s Q4 2025 earnings call on Jan. 28, 2026.
