Tesla to Cease Model S and X Production, Shift Fremont Lines to Optimus Gen 3
Tesla will wind down its Model S and Model X production and retool Fremont factory lines to start Optimus Gen 3 robot production later this year. Optimus is slated for 2027 release with initial use in Model 3 and Y assembly, targeting up to one million units annually at $20,000–$30,000.
1. Model S and X Production Wind-Down
Tesla has confirmed it will discontinue its Model S and Model X programs without successor vehicles, reflecting their status as lower-volume offerings that represent a small fraction of global deliveries compared to the Model 3 and Y.
2. Fremont Factory Retooling for Optimus
Sections of the Fremont factory are being converted this year to support early production of the Optimus Gen 3 robot, adapting existing vehicle assembly lines into dedicated robotic manufacturing cells.
3. Optimus Development Timeline and Market Potential
Optimus leverages Tesla’s AI and computer vision software from its Full Self-Driving stack, with full production targeted for 2027 and initial deployment in Model 3 and Y assembly. The company aims to scale to one million units annually at $20,000–$30,000 each, while analysts forecast a multi-trillion-dollar humanoid robot market by 2050.