Tesla ends Model S, Model X production as Musk shifts Fremont to Optimus robot production
Tesla CEO Elon Musk announced January 28, 2026, that production of the Model S and Model X will end by the end of Q2 2026 as Fremont is repurposed for Optimus humanoid robot production, shifting strategy toward robotics and autonomy.
- Production wind-down: Musk said on Tesla’s Q4 2025 earnings call that Model S/X production will stop by end of Q2 2026.
- Factory pivot: Fremont will be repurposed to support Optimus humanoid robot production with ambitions of large-scale output, per reporting by Electrek and Fox Business.
- Small current volumes: S/X deliveries were a fraction of Tesla’s volume in 2025 (under ~30,000), enabling the company to reallocate space and investment.
Key information
Announcement and timeline: On the January 28, 2026 earnings call Musk said Model S and Model X production will begin winding down next quarter and cease by the end of Q2 2026. Reporting and company commentary are documented by Fox Business and Electrek.
Why Tesla is ending Model S and Model X now
The Model S (2012) and Model X (2015) were early leaders for Tesla but saw steadily declining sales as the Model 3 and Model Y dominated 2025 deliveries. Company reporting grouped S/X with low-volume vehicles; Electrek and Edmunds estimate combined S/X deliveries were roughly 11,642 in Q4 2025 and around 50,850 for the full year, with actual S/X units likely under 30,000—less than 3% of Tesla’s 1.64 million deliveries in 2025 (Electrek; Edmunds).
“An honorable discharge.” Musk described winding down S/X production as giving the programs an “honorable discharge,” and encouraged buyers to order now because no direct replacements are planned.
Production, capacity and numbers
Fremont’s tooling for S/X could historically support roughly 100,000 units annually, but Tesla has not run those lines at that capacity for years amid price cuts, competition and modest product updates. Pricing adjustments in 2025 briefly placed the Model S around $84,990 and Model X near $89,990 at one point (Fox Business; Electrek).
Optimus robot production and Fremont repurposing
Tesla plans to repurpose Fremont space to support mass production of the Optimus humanoid robot. Company materials and reporting suggest future lines could support up to 1 million Optimus units annually for a third-generation robot Tesla aims to unveil this quarter. Tesla also told investors it plans to invest in six new production lines in 2026 covering vehicles, robots, energy storage and batteries, leveraging existing factory space (Electrek; Fox Business).
Financial context and what the numbers show
Revenue trends: Tesla reported Q4 2025 revenue of $24.9 billion, down 3%, and full-year 2025 revenue of $94.8 billion, down 3% year over year. EV sales declined quarter-over-quarter and Tesla’s stock closed the day at $430.46 on the announcement day (Fox Business).
Musk framed the shift as strategic—reallocating resources from low-volume luxury cars to higher-volume models, autonomy and robotics. For conservative-minded readers, the pivot raises questions about capital allocation: will robotics investments yield durable profits and jobs, or become costly experiments? Analysts will be watching execution closely (Electrek; Edmunds).
Market reaction and industry perspectives
Industry reporters generally called the move unsurprising given the age and falling sales of the S and X. Coverage notes the decision aligns with Musk’s long-standing focus on scaling robotics and autonomy; community forums and analysts debated timing and implications (CarBuzz; Edmunds; Tesla Motors Club forum).
Implications for Hesperia, California
Economic impact
Although Hesperia does not host Fremont, changes at Tesla can ripple through Southern California suppliers, logistics firms and local businesses. Parts orders, subcontracting and dealer inventories could shift, potentially making late-model Model S and Model X used cars scarcer—and pricier—over time (Electrek; Edmunds).
Job market and labor considerations
Fremont repurposing could create new roles tied to Optimus, but those jobs will be Bay Area–centric. Hesperia residents who commute or seek automotive manufacturing work should monitor supplier hiring and Tesla’s subcontractor announcements. Conservative readers may seek clarity on job quality, longevity and local sourcing of hires (Fox Business).
Local consumers and used-car market
Fewer new S/X models could push Hesperia buyers toward competitors or into a tighter used-car market. Dealers and private sellers may see increased demand and prices for well-maintained Model S and Model X vehicles with long-range capability (Edmunds).
Infrastructure and daily life
Service and parts availability will be important for local owners. Tesla’s service network is expected to continue support, but fewer new S/X models could lengthen parts lead times for specialty repairs. Supercharger access remains available for owners, yet independent shops may see demand shifts (Electrek).
Political and community perspective
Conservative community leaders in Hesperia will likely evaluate the story through economic stewardship and job security lenses. Key local concerns include whether new investments produce durable jobs, and how state and local policymakers respond with workforce supports or incentives (Fox Business).
Where to watch next
Local officials, job centers and community leaders should monitor Tesla’s follow-up on Fremont timelines, supplier contracts and hiring plans. The earnings call sets direction, but details on subcontractors, production schedules and capital allocation will determine the real impact.
