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Tesla Shifts Gears: Model S/X Out, Robots In!
29 Jan
Summary
- Tesla is phasing out Model S and Model X production.
- Production lines will be repurposed for Optimus robots.
- This marks a strategic shift towards robotics for Tesla.

Tesla's CEO Elon Musk revealed on Wednesday's earnings call that the company is set to retire the Model S and Model X electric vehicles. These models are slated for an "honorable discharge" as Tesla reallocates resources toward its future ambitions. The production facilities in Fremont, California, dedicated to these vehicles, will be repurposed to begin manufacturing Optimus robots.
This strategic decision highlights a significant shift in Tesla's business focus. Musk views the Optimus humanoid robots as the company's primary future endeavor. The discontinuation of the Model S and Model X, which are among Tesla's older and less volume-driving vehicles, aligns with this forward-looking strategy. The move signifies Tesla's commitment to innovation beyond its established electric car market.




