Tesla announced it will end production of the Model S and Model X at its Fremont factory in California, with CEO Elon Musk revealing plans to repurpose the facility for manufacturing Optimus humanoid robots.
The Model S launched in 2012 as Tesla’s first in-house developed EV. Its predecessor, the 2008 Tesla Roadster, used a Lotus Elise platform.
Tesla introduced the Model X in 2015 as the company’s first SUV. Both vehicles helped establish Tesla in the mainstream market and paved the way for the Model 3 and Model Y.
Production Timeline and Optimus Plans
During Tesla’s fourth-quarter earnings call on January 28, Musk explained the decision.
“It’s time to basically bring the Model S and X programmes to an end with an honourable discharge, because we’re really moving into a future that is based on autonomy. If you’re interested in buying a Model S and X, now would be the time to order it.”
The freed-up manufacturing space will enable large-scale Optimus robot production by the end of 2026.
Musk described this shift as ushering in “a world where there is no poverty.” Optimus sales are expected to begin in 2027.
Financial Performance
Tesla reported its first annual revenue decline during the earnings announcement, according to The Guardian. Revenue dropped 3% year-over-year.
Vehicle delivery numbers fell 16% during the same period.
The Model 3 and Model Y will continue production despite the cuts to premium vehicles. Tesla announced that entry-level ‘Standard’ editions of both cars will arrive in the UK next month, priced from £37,995 and £41,990 respectively.
Previous European Market Challenges
Tesla briefly discontinued the Model S and X in Europe last summer. The decision stemmed from weak consumer interest following high purchase costs and Musk’s involvement in controversial political endorsements.
This included backing Reform UK and the Alternative for Germany (AfD) party.
The Fremont factory transition represents Tesla’s largest strategic shift toward autonomous technology and robotics manufacturing since the company’s founding.
