Tesla to End Model S and X Production, Refit Fremont for Optimus Robots
CEO Elon Musk said on Jan. 28, 2026 that Tesla will end Model S and Model X production to retool its Fremont plant for Optimus humanoid robots and pledged $20 billion in capex.
Overview
CEO Elon Musk said on Jan. 28, 2026 during Tesla's fourth-quarter earnings call that the company will end production of the Model S and Model X, expected in the second quarter, and retool its Fremont, California, factory to build Optimus humanoid robots.
The decision follows a 46% drop in Tesla's 2025 net income to $3.8 billion and accompanies a $20 billion capital-spending pledge, company filings and executives said.
Elon Musk wrote on Sept. 1, 2025 on X that he estimates '80% of Tesla's value will be Optimus,' and he told the World Economic Forum on Jan. 22, 2026 that he projects Optimus will be offered for sale by the end of 2027, according to his public statements.
Industry shipment records show China's leading humanoid firm shipped about 5,500 robots last year while Tesla shipped 150, highlighting a substantial production gap for Optimus.
Tesla said it will make heavy investments in 2026 to scale Optimus production and that consumer availability by the end of 2027 will depend on engineering milestones and regulatory approvals, company officials said.
Analysis
Center-leaning sources frame Tesla's pivot as ambitious yet perilous, using evaluative terms ('futuristic vision', 'risky'), privileging Musk-linked developments (SpaceX/xAI merger, IPO) over worker or market perspectives, and emphasizing comparative shipment figures to underscore skepticism. Quotations are presented as source content, but editorial choices steer readers toward doubt about feasibility.