Tesla to End Model S and Model X Production by Q2 2026 as Fremont Plant Is Retooled for Optimus Robots
Tesla confirmed the end of Model S and Model X production by Q2 2026, announced on its Q4 2025 earnings call; Fremont’s factory will be retooled to manufacture Optimus humanoid robots, marking a major strategic shift.
Key takeaways
- Production end: Model S and Model X will wind down in Q1 2026 and stop by end of Q2 2026, per Elon Musk on the Q4 2025 call (Fox Business; Electrek).
- Factory pivot: Fremont will be partly repurposed for mass production of the Optimus humanoid robot with long-term ambitious targets.
- Business context: Tesla’s Q4 2025 revenue was $24.9 billion and full-year 2025 revenue $94.8 billion, both down 3% year-over-year (Fox Business).
Main story
Key information
On the Q4 2025 earnings call on Wednesday, Jan. 28, 2026, CEO Elon Musk said the Model S and Model X programs will begin winding down next quarter and end by the close of Q2 2026. He described the move as giving the programs an “honorable discharge” and urged buyers to place orders now (Fox Business; Electrek).
Tesla said parts of the Fremont plant will be repurposed to support initiatives including mass production of the Optimus humanoid robot, with long-term ambitions for very large production targets (Fox Business).
Tesla reported Q4 2025 revenue of $24.9 billion (down 3% year-over-year) and full-year 2025 revenue of $94.8 billion (down 3%) on the same call (Fox Business).
Winding down the flagships: timeline and production details
Timeline: Musk said the programs will begin winding down in Q1 2026 with full manufacturing to cease by end of Q2 2026 (June) (Fox Business; Electrek).
The Model S (launched 2012) and Model X (launched 2015) served as Tesla’s premium lineup for more than a decade and were central to the company’s early EV leadership (Fox Business).
Fremont’s production line for these vehicles has an estimated annual capacity near 100,000 units but has operated well below that level in recent years (Electrek). Delivery figures for the category that includes Model S and Model X — reported as “Other Models” alongside Cybertruck and Semi — fell from 23,640 quarterly deliveries in Q4 2024 to 11,642 in Q4 2025, with about 50,850 full-year deliveries in 2025 for that group (Electrek).
Sales, pricing and market pressures
Tesla’s overall vehicle deliveries in 2025 were 1.64 million, down 9% year-over-year; EV sales in Q4 2025 dropped 16% (Fox Business).
The Model S and Model X made up less than 3% of Tesla’s total deliveries in 2025, while the Model 3 and Model Y continued to dominate volume (Edmunds).
Tesla adjusted prices across models in 2025 amid rising EV competition. A June 2025 minor refresh to the Model S and Model X added features but raised base prices to roughly $84,990 for the Model S and $89,990 for the Model X — moves that did not halt declining sales (Electrek).
Strategic pivot: autonomy and robots
Musk framed the end of the two models as part of a broad strategic pivot toward autonomy and robotics. He emphasized plans to prioritize autonomous technologies and the Optimus humanoid robot program, noting a third-generation Optimus reveal planned this quarter and work to build a supply chain for mass production (Fox Business; Electrek).
Musk argued that freeing factory capacity is necessary to scale robot production and other high-volume programs, even though driver-assistance hardware is broadly similar across Tesla’s car lineup (Electrek).
Tesla also indicated planned investments in infrastructure including clean energy, transport, autonomous robots, energy storage and batteries in 2026, along with multiple new production lines (Fox Business).
Fremont factory repurpose and production targets
Tesla intends to repurpose parts of the Fremont assembly lines to support Optimus production and other initiatives. Company commentary during the call referenced ambitious long-term targets for robot production, with media reports citing aspirations as high as up to 1 million units annually if the program scales (Fox Business; Electrek).
Retooling an auto plant for robotics raises operational questions: different assembly tooling, new equipment, worker retraining and supplier changes for actuators, sensors and battery packs will be required (Fox Business).
What this means for buyers, dealers and the used market
Musk urged buyers to order now. With production ending and no planned successors, resale dynamics could change: final-year models might see demand spikes from collectors or buyers seeking premium Tesla features, while broader weakness in high-end EV demand could keep prices subdued (CarBuzz; Autoblog).
Implications for Sonoma, California
Economic impact
Sonoma County residents who commute to the Bay Area manufacturing corridor, including Fremont, could see ripple effects: reduced commuting, shifts in demand for services tied to hourly manufacturing workers, or new opportunities if robotics production grows locally.
Job and training considerations
The transition may create different types of jobs — robotics technicians, software engineers and quality specialists — and could require workforce retraining. Local community colleges and workforce programs may need to adapt curricula for robotics, automation and battery manufacturing.
Supply chain and small businesses
Suppliers, service shops and vendors that supported Model S and Model X might see demand changes. Some local auto body shops and parts resellers could face reduced work, while openings could appear for contractors in robotics and battery manufacturing.
Used-car values and local buyers
Final-year Model S and Model X vehicles may become more sought-after in local inventories, potentially pushing prices higher — though national declines in high-end EV demand in 2025 suggest any price moves could be modest unless supplies tighten significantly (Electrek; Edmunds).
Traffic, charging and local infrastructure
Any change in the mix of Teslas on the road will be gradual and unlikely to immediately affect public charging capacity. However, increased industrial activity tied to robotics or batteries could raise local electricity demand and create opportunities for expanded clean energy projects.
Political and community response
Local leaders in politically moderate Sonoma may seek balanced approaches that protect jobs while encouraging high-tech growth, fostering partnerships between Tesla, schools and workforce agencies to manage the transition.
Next steps to watch
Residents and officials should monitor Tesla’s detailed retooling plans, hiring notices and any community impact statements. The third-generation Optimus reveal and Tesla’s 2026 capital expenditure plans will be key to understanding job and supplier shifts (Fox Business; Electrek).
Documentation and reporting
Multiple outlets covered Musk’s comments and Tesla filings; accounts of the earnings call were reflected across business and automotive media and community forums.
“Reporting by Times Media Service from the Tesla earnings call and public filings.”
Reporting sources
- Fox Business
- Electrek
- Edmunds
- CarBuzz
- Autoblog
- Tesla Motors Club forum thread
- YouTube recording of the earnings call
Reporting by Times Media Service from the Tesla earnings call and public filings.
