Business22 April, 20261 min read
Tesla Ends Model S and X Production, Shifts Fremont to Optimize Robots
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Model S and Model X production ends in 2026. Tesla prioritizes Optimus robotics over automotive production.
Tesla Phases Out Model S, Model X
Tesla will end production of the Model S and Model X in Q2 2026. The two models accounted for only a small fraction of sales compared to Model 3 and Model Y.
Production volumes across the high-end models fell 9 percent globally in 2025. Fremont will be repurposed as a robotics and AI hub.
Fremont Factory to Produce Up to One Million Optimus Robots
Fremont will be repurposed to assemble the Optimus humanoid robot. The production target is up to one million units per year.
Robots leverage AI from Tesla's Full Self-Driving system. More than $20 billion will be spent across Tesla's large projects in 2026.
Sales and Production Diverge, Energy Business Declines
Tesla built 408,386 EVs in Q1 2026, a 12.6 percent increase year-over-year. It sold only 358,023, a 6.3 percent increase, adding 50,000 more cars to inventory. The energy storage business declined 15 percent year-over-year.
Legacy and Sentiment
The Model S had a 14-year run, the longest among Tesla models. Tesla is repositioning from a car company to an AI and robotics group. The divergence between production and sales underlines risks in the transition.