Tesla to end Model S and Model X production by mid-2026 as Fremont plant pivots to Optimus robots
Elon Musk said Tesla will halt production of the Model S and Model X by mid‑2026 to repurpose Fremont factory capacity toward mass production of Optimus humanoid robots, a strategic pivot that urges buyers to order remaining units now.
- Timeline: Production of the Model S and Model X will wind down next quarter and end between March and June 2026 — an “honorable discharge,” Musk said; see CarBuzz and Fox Business.
- Factory pivot: Fremont space will be repurposed for Optimus robot lines and other new production, according to reporting by Fox Business and Electrek.
- Sales context: Q4 2025 revenue fell 3% to $24.9 billion; EV sales declined and S/X volumes were a small share of total deliveries, per Fox Business and Electrek.
- Buyers: Customers seeking new Model S or X cars are urged to order now as dealer inventory is expected to dwindle; see CarBuzz and Edmunds.
What Musk announced and the timeline
Announcement: On Tesla’s Q4 2025 earnings call on Jan. 28, 2026, Elon Musk said the company will wind down production of the Model S and Model X next quarter and stop manufacturing sometime between March and June 2026. He described ending the programs as giving them an “honorable discharge.”
“An honorable discharge” — Elon Musk, Tesla Q4 2025 earnings call
Musk tied the decision to Tesla’s strategic shift toward autonomy and robotics, saying Fremont factory space will be repurposed to support new initiatives, including scaled production of the Optimus humanoid robot. (Reporting: Fox Business; Electrek.)
Financial and sales context behind the move
Tesla reported Q4 2025 revenue of $24.9 billion, a 3% decline, and full-year revenue of $94.8 billion, also down 3% year-over-year. EV sales fell ~16% in Q4 and ~9% for the full year, with total deliveries near 1.64 million for 2025. (See Fox Business.)
Deliveries of “Other Models” — the bucket that groups the Model S and Model X with lower-volume models such as the Cybertruck and Semi — fell sharply: quarterly “Other Models” deliveries dropped from 23,640 in Q4 2024 to 11,642 in Q4 2025, with ~50,850 for the full year. Industry estimates place S/X actual volumes at roughly 30,000 units in 2025, under 3% of Tesla’s total deliveries. (Source: Electrek; Edmunds.)
Corporate moves and production capacity claims
Tesla announced plans for major 2026 investments to expand production lines across vehicles, robots, energy storage and batteries, including six new lines. Musk has suggested that Fremont’s former S/X capacity — historically able to produce ~100,000 units/year but currently underused — could be transformed into an Optimus production line with theoretical capacity up to 1 million units annually, a projection that would require a new supply chain and significant manufacturing changes. (Reporting: Fox Business; Electrek.)
Tesla indicated it will unveil a third‑generation Optimus this quarter as it moves toward mass production planning. Scaling robotics to consumer or commercial volumes presents substantial technical and sourcing hurdles, according to industry analysts. (See Electrek.)
Historical perspective: end of an era
The Model S (introduced 2012) and Model X (introduced 2015) helped establish Tesla as an EV leader and moved the company beyond niche status. Over time they were eclipsed by higher-volume models — the Model 3 and Model Y — and their declining volumes, rising development costs and limited share of total deliveries made continued production less tenable, industry observers say. (Sources: CarBuzz; Electrek.)
What this means for customers and the used market
Musk urged buyers to order now, warning that dealer inventory will be limited after production ends. Owners and collectors may see shifts in demand and pricing for used Model S and X cars as new supply dries up. Tesla has not announced a direct replacement for either model. (Reporting: CarBuzz; Edmunds.)
In 2025 Tesla adjusted pricing and implemented modest refreshes to the S and X — minor design and range updates and price moves that briefly put some trims into the mid‑$80,000 range — reflecting the models’ changing market position before the phase‑out. (Electrek.)
Manufacturing, supply chain and workforce implications
Shifting an auto assembly line to produce humanoid robots is complex. Musk’s 1 million‑unit Optimus projection would demand entirely new suppliers, components not typical in car production, and deep changes to manufacturing processes. Industry analysts caution that scaling robotics to mass volumes faces substantial technical and sourcing hurdles. (Reporting: Electrek; Fox Business.)
For Fremont workers and Tesla’s supplier network, the pivot creates uncertainty. Tesla said it will invest in infrastructure across vehicles, robots, energy storage and batteries but offered limited detail on workforce transitions. The skills needed for robot assembly and new suppliers may differ significantly from traditional auto assembly roles.
Implications for the Inland Empire
Economic impact: The Inland Empire — a major logistics, warehousing and distribution hub for Southern California — could feel ripple effects if Tesla reallocates suppliers or changes distribution patterns tied to Fremont production. Local freight carriers, parts suppliers and aftermarket businesses that support ports, rail and trucking networks may see demand shifts. (See Fox Business; Electrek.)
Jobs and workforce
Direct factory impacts concentrate in Fremont, but Inland Empire residents who commute or work for logistics and supplier firms could be affected. If Tesla’s pivot drives demand for robotics components, local manufacturers and tech firms might gain opportunities — yet reduced car production could lower demand for certain parts and services. Workforce retraining and community‑college partnerships may become more important.
Auto retail and service sector
Local Tesla service centers and stores could see changes in parts demand and service work for S and X vehicles. The used‑car market may respond to scarcity of new S/X models, and independent shops should prepare for evolving inventory and maintenance needs. (See CarBuzz; Edmunds.)
Community, innovation and education
A national shift toward robotics manufacturing could create potential partnerships or supplier opportunities for Inland Empire colleges, vocational programs and small manufacturers. Local policymakers might pursue strategies to attract robotics suppliers or testing facilities, though gains depend on supplier choices and Tesla’s logistics plans. (Reporting: Fox Business; Electrek.)
Practical effects for residents and reporting note
Inland Empire residents who drive Model S or X vehicles should note that new production ends in mid‑2026 and dealer inventory is likely to be limited; buyers seeking final new units should act promptly. Local service shops and logistics firms should review inventory and routing plans in case Tesla changes distribution tied to Fremont production. (Sources: CarBuzz; Edmunds.)
Reporting note: This article draws on Tesla’s Q4 2025 earnings call and industry reporting from multiple outlets and community sources including CarBuzz, Fox Business, Electrek, Edmunds, a Tesla Motors Club thread and video of the earnings call (YouTube).
