Liputan6.com, Jakarta - Tesla, the innovative automotive company led by Elon Musk, recently announced a major decision that will shift its strategic direction.
During its fourth-quarter 2025 earnings call, Musk officially announced the discontinuation of production of two of its iconic models, the Model S and Model X.
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The discontinuation of Model S and Model X production is scheduled to be completed by the end of the second quarter of 2026 after a significant decline in sales figures for both models over the past few months.
As such, Tesla is poised to make a drastic shift in priorities, abandoning part of its automotive heritage in favor of pursuing ambitions in artificial intelligence and humanoid robots.
The Fremont factory in California, which has been home to Model S and Model X production, will undergo a major transformation.
The facility will be converted into a production center for the Optimus humanoid robot.
Tesla's Shift from Automotive to Robotics
Tesla's decision to discontinue production of the Model S and Model X happened after the two luxury models have experienced a drastic decline.
By 2025, total deliveries of these premium models will reach only 50,850 units, a significant drop from the 85,133 units recorded in 2024.
These figures are a clear indicator that the market for Tesla's premium sedans and SUVs has shifted, prompting the company to re-evaluate its product portfolio.
Elon Musk explained that this move is part of Tesla's strategic shift toward a future based entirely on autonomy and artificial intelligence.
Tesla's long-term vision is to create a more integrated ecosystem between autonomous vehicles and humanoid robots, which are expected to be key pillars of the company's future growth.
The transformation of the Fremont factory into an Optimus robot production facility is a clear demonstration of this new priority.
Tesla's Future with the Optimus Robot
The Optimus robot, also known as the Tesla Bot, is a multi-purpose humanoid robot currently being developed by Tesla, Inc.
It is designed to perform a variety of tasks considered unsafe, repetitive, or tedious for humans.
With these capabilities, Optimus is expected to revolutionize various industrial sectors and everyday life, from manufacturing to services.
Elon Musk himself has stated that Optimus has the potential to become more significant than Tesla's vehicle business over time.
Tesla is targeting a long-term production capacity of 1 million Optimus robots per year. This ambition demonstrates the sheer scale of the ongoing robotics project.
Mass production of the Optimus Gen 3, specifically designed for large-scale production, is planned to begin before the end of 2026.
Preparations for the first production line are underway, with a targeted annual capacity of 1 million robots.
Optimus robots will also begin being used for training at the Austin, Texas, factory as an "internship" before their actual factory deployment.
Tesla's Major Investment in AI and Robotics
To support this strategic shift, Tesla has significantly increased its capital investment.
The company plans to invest more than $20 billion by 2026, double its previous guidance, to accelerate investments in humanoid robotics, autonomous vehicles, and artificial intelligence (AI).
In addition, Tesla is investing approximately $2 billion in xAI, a company developing large language models (Grok).
This investment aims to accelerate Tesla's Master Plan Part IV, which includes AI-based autonomy in vehicles and humanoid robots.
The collaboration with xAI will strengthen Tesla's AI capabilities, which are a key component in the development of Optimus robots and autonomous vehicle systems.