Tesla to End Model S and Model X Production as Fremont Factory Shifts Toward Optimus Robot Output
Tesla will stop producing the Model S and Model X by the end of Q2 2026, CEO Elon Musk said, as the Fremont plant is refitted to make Optimus humanoid robots—part of a strategic shift amid falling sales and revenue.
- Production end: Model S and Model X lines will wind down next quarter and cease by end of Q2 2026, CEO Elon Musk announced on the Q4 2025 earnings call (Jan. 28, 2026).
- Factory pivot: Fremont space will be repurposed to support mass production plans for the Optimus humanoid robot and other initiatives (Electrek, Fox Business).
- Scale shift: Model S and X deliveries were about 50,850 units in 2025 (under 3% of Tesla’s 1.64 million deliveries), while Fremont capacity for those lines is roughly 100,000 annually (Electrek, Edmunds).
- Financial context: Q4 2025 revenue was $24.9 billion and full-year 2025 revenue was $94.8 billion, both down 3% year over year (Fox Business).
Key information from Tesla’s announcement
Timeline and statement: During the Q4 2025 earnings call (Jan. 28, 2026), Elon Musk said the company will “bring the Model S and X programs to an end with an honorable discharge,” urging interested buyers to order now. Media outlets including Electrek and Edmunds corroborated the timeline.
“It’s time to basically bring the Model S and X programs to an end with an honorable discharge,” Musk said on the call, adding that those interested should order now. (Fox Business)
Why Tesla is ending Model S and Model X production
The move reflects weak demand for Tesla’s premium offerings and a strategic reallocation of manufacturing capacity toward autonomy and robotics. The Model S (launched 2012) and Model X (launched 2015) were once flagship products but have seen sharply declining sales; combined deliveries categorized as “Other Models” (which include Cybertruck and Semi) totaled about 50,850 units in 2025, with Q4 deliveries at 11,642 (Electrek).
Financial context and market pressure
Revenue and sales pressure: Tesla’s Q4 2025 revenue slipped to $24.9 billion and full-year revenue was $94.8 billion, both down 3% from the prior year. EV sales dropped 16% in Q4, driven by intensified global competition and Tesla’s own price adjustments on the S and X (Fox Business).
A June 2025 refresh added features (front bumper camera, ambient lighting) and raised prices, but it failed to revive demand and may have signaled a final iteration for the lines (Electrek).
Fremont factory repurposed: Optimus robot plans and production timeline
Tesla plans to free Fremont capacity by winding down S and X production next quarter and stopping manufacturing in 2026, then repurpose the space for Optimus humanoid robots and other projects (Electrek, Fox Business).
Tesla has outlined aggressive targets: a third-generation Optimus design aimed at mass production this quarter and plans to add six new production lines in 2026 across vehicles, robots, energy, and batteries. Some reports suggest a future supply chain could allow Optimus output to scale toward as many as 1 million units annually, though those projections are speculative and dependent on execution (Electrek).
No direct replacements planned
Tesla has not announced successor models to replace the Model S and Model X. Coverage from CarBuzz and Autoblog indicates Tesla will prioritize scaling Model 3 and Model Y, rolling out Cybertruck and Semi, and expanding robotics and energy systems instead.
What this means for buyers, owners and the secondary market
Buyers: Musk’s call to “order now” signals limited new inventory after Q2 2026; prospective buyers may face shrinking availability and upward pressure on used prices (Edmunds).
Owners: Tesla has not announced an end to support, service, or software updates. Nevertheless, legacy status could raise long-term concerns about parts availability and service investment. Owner forums and communities are actively discussing implications (Tesla Motors Club).
Implications for Los Angeles and Southern California
Economic impact: Fremont’s shift could ripple through Southern California’s supplier, logistics, and used-car ecosystems. LA-area dealers and auction houses may see inventory and price shifts for late-model S and X vehicles (Electrek, Fox Business).
Jobs and industry: A pivot toward robotics could create opportunities for LA-area firms in automation and advanced manufacturing, though decreased demand for S/X-specific parts could hurt suppliers tied to those components.
Transportation and charging: A long-term decline in new S/X deliveries may shift local EV mix toward smaller models like Model 3 and Model Y, altering public charging demand patterns across the region.
Political and cultural: The decision adds fuel to policy debates over California’s role in EV and robotics manufacturing; it also marks an emotional turning point for EV enthusiasts who view the S and X as cultural icons (Edmunds).
Reporting notes and sources
This article draws on Tesla’s Q4 2025 earnings call reporting and coverage by business and auto outlets. Sources include:
