Tesla Axes Model S/X Line for Optimus Production

Electric vehicle giant Tesla has finished dismantling its original assembly line for the flagship Model S sedan and Model X SUV at its Fremont factory. The decommissioning process wrapped up in just 46 days, which is a remarkably short time frame considering the complexity of the operation.

The Model S, introduced in 2012, and the Model X, launched in 2015, played key roles in establishing Tesla as a serious contender in the automotive industry. Over their lifetimes, these two nameplates sold around 750,000 units together. Their success paved the way for Tesla’s growth and helped to solidify its position in the market.

In January 2026, during Tesla’s fourth-quarter earnings call for 2025, CEO Elon Musk announced that it was time ‘to basically bring the Model S and X programs to an end with an honorable discharge.’ He cited the company’s pivot towards an autonomous future as the reason behind this decision. The final vehicles rolled off the line in early May 2026.

The freed space at Fremont is being converted into Tesla’s first dedicated Optimus humanoid robot production line. This facility will have a long-term capacity for up to 1 million robots per year, but initial output will be ‘quite slow’ due to the complexity of a new manufacturing process involving roughly 10,000 unique parts and the absence of an established humanoid robot supply chain.

Tesla plans to start limited Optimus production at the converted Fremont facility in late July or August 2026. The third-generation (Gen 3) Optimus robot is scheduled for unveiling around mid-2026. Early units will primarily serve internal Tesla factory use before being deployed externally, with Musk envisioning applications in manufacturing, domestic assistance, and other sectors.

The CEO has repeatedly described Optimus as potentially ‘the biggest product of all time.’ He recently posted a photo from the Optimus production line on social media, giving fans a glimpse into the development process. On Stocktwits, retail sentiment around TSLA stock remained within the ‘bullish’ territory over the past 24 hours, while message volume stayed at normal levels.

Despite TSLA stock falling 9% year-to-date, investors remain optimistic about Tesla’s future prospects with its focus on humanoid robotics and autonomous technology. As the company continues to push boundaries in innovation, it is poised to make significant strides in these areas.