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Tesla to End Model S and X Production Next Quarter, Shifting Fremont to Robots and Robotaxis

The shift channels roughly $20 billion in 2026 spending plus a $2 billion xAI stake to AI and autonomy after a year of lower revenue and profit.

Overview

  • Tesla will repurpose the Fremont lines for an Optimus humanoid‑robot factory, with Musk citing a long‑term capacity goal of up to 1 million robots per year.
  • Production of the steering‑wheel‑less Cybercab is planned to start in 2026, which Musk predicts could eventually surpass all other Tesla models in volume.
  • Service and technical support for existing Model S and Model X vehicles will continue for the lifetime of the cars despite the production wind‑down.
  • Model S/X, grouped with Cybertruck as “other models,” accounted for about 50,850 deliveries in 2025 versus roughly 1.6 million Model 3 and Model Y.
  • Musk said Optimus remains in R&D with only simple factory tasks so far and warned of possible memory‑chip shortages, adding Tesla may consider building an in‑house chip fab.