According to him, production of the Model S and Model X in California will stop in the next quarter. The freed-up production capacity at the Fremont factory will be retooled to create humanoid robots called Optimus.
“We have decided to respectfully end the production of the Model S and Model X as we move towards a future dominated by autonomy,” Musk noted in a conversation with investors.
“We will continue to support Model S and Model X owners for as long as they use these vehicles, but we will transform the production facilities in Fremont into an Optimus factory with the long-term goal of producing 1 million units per year.”
The Model S, introduced in 2012, radically changed the perception of electric vehicles: it was not just a city car, but a luxury sedan that competed in dynamics with supercars and outpaced the BMW M5, as well as some hypercars. Together with the Nissan Leaf, it helped popularize electric vehicles.
The Model X, released later, was remembered for its "falcon wing" doors and spacious interior, although it did not have the same cultural impact as the Model S.
However, over time, sales of both models began to decline against the backdrop of the rapid rise in popularity of the Model 3 and Model Y. Tesla regularly updated its flagship vehicles but did not introduce entirely new generations, despite growing competition from Western and Chinese manufacturers.
Instead of updating the existing lineup, Tesla decided to radically change its direction: from producing passenger cars to developing humanoid robots, which Musk hopes will bring the company significantly greater revenue and have a more substantial impact on the world.
The Fremont factory will become a key production center for the Optimus robots — a project that Musk has identified as one of the main priorities for the company in the coming years.
