Tesla has completed the teardown of its original Model S and Model X assembly line at the Fremont Factory in just 46 days. This move marks the end of an era for Tesla’s flagship vehicles and signals a major shift toward robotics, with the factory floor being repurposed for the production of the Optimus humanoid robot.
End of Model S and Model X Production at Fremont
Tesla shared a video on July 10, 2026, showing the rapid decommissioning of the Model S and Model X assembly line at its Fremont Factory in Northern California. The process, completed in only 46 days, involved dismantling concrete pits, removing robotic arms, and clearing conveyors.
The decision to retire these lines was announced during Tesla’s Q4 2025 Earnings Call in late January 2026. CEO Elon Musk described the move as giving the Model S and Model X programs an ‘honorable discharge.’ Custom orders ended in early April 2026, with the final vehicles rolling off the line in early May. A signature delivery ceremony on May 20, 2026, marked the close of this chapter for Tesla’s luxury EVs, which have been central to the brand since the Model S launched in 2012.
Transition to Optimus Robot Manufacturing
The primary reason for dismantling the Model S and X lines is to repurpose the space for high-volume production of Tesla’s Optimus humanoid robot. The new Optimus manufacturing line at Fremont is targeting a capacity of one million units per year.
Optimus is a general-purpose humanoid robot powered by Tesla’s AI and Neural Networks, designed to handle repetitive or hazardous tasks in factories, warehouses, and homes. Production of Optimus Gen 3 has already begun in limited form at Fremont, with full-scale output on the converted line expected to start in late July or August 2026. Tesla aims to produce tens or even hundreds of thousands of units annually by the end of 2026.
Long-Term Plans for Optimus
Beyond Fremont, Tesla is building a second-generation Optimus facility at Giga Texas, which could eventually reach a capacity of millions of units per year. The company sees Optimus as a transformative product, leveraging its expertise in autonomy, AI, and large-scale manufacturing.
Competitor Comparison
The Model S has long competed with other high-end electric sedans such as the Lucid Air and the Mercedes EQS. Both rivals offer luxury features and advanced technology, with the Lucid Air positioned as a direct price competitor and the Mercedes EQS representing the flagship electric offering from Mercedes-Benz. As Tesla shifts its focus away from these models, the competitive landscape for luxury EV sedans will continue to evolve.
Historical Context
Tesla’s global sales reached 1,654,667 vehicles in 2025, representing an 8.6% decline year-over-year from 1,789,226 units in 2024. The Model S and Model X have played a significant role in establishing Tesla’s reputation in the luxury EV market, but the company’s recent moves reflect a broader strategic pivot toward robotics and artificial intelligence.
Why this matters
The rapid teardown and repurposing of Tesla’s Fremont lines highlight the company’s shift from traditional vehicle manufacturing to robotics and AI-driven products. By reallocating resources to Optimus, Tesla is betting on a future where robotics could become as important as, or even surpass, its automotive business.
This transition also marks a significant moment for the EV industry, as one of the original leaders in luxury electric vehicles moves to redefine its core business.
What this means for buyers
With the end of Model S and Model X production, buyers interested in Tesla’s flagship vehicles will need to act quickly to secure remaining inventory or consider alternatives such as the Lucid Air or Mercedes EQS. The shift also suggests that Tesla’s future offerings may focus more on robotics and AI, potentially changing the company’s product mix and priorities in the coming years.
Key Specs
- Teardown Duration: 46 days
- Final Model S/X Delivery Ceremony: May 20, 2026
- Optimus Fremont Line Target Capacity: 1,000,000 units per year
- Optimus Gen 3 Production Start: Limited production underway; full-scale output expected late July or August 2026
- Second-Generation Optimus Facility: Under construction at Giga Texas (multi-million unit potential)
Source
Images sourced from: globalchinaev.com, interestingengineering.com, gearpatrol.com
