Tesla ended production of the Model S and Model X at its Fremont facility and is converting the manufacturing line to support production of its Optimus humanoid robots. The move reflects Tesla’s growing focus on robotics and artificial intelligence as demand for its flagship EV models continues to decline.
The company is reportedly targeting annual Optimus production capacity of up to one million units over the long term, positioning humanoid robotics as a major future revenue driver. Tesla executives have increasingly emphasized AI, automation, and robotics during recent investor presentations as the company expands beyond electric vehicles.
Analysts said the transition signals a strategic shift toward high-growth AI-driven manufacturing businesses while Tesla restructures operations around lower-volume premium vehicle production.
