Fremont to Convert Model S/X Lines into Optimus Gen 3 Factory: Low-Volume Production in 2026

Tesla is preparing one of the most symbolic shifts in its history: the Fremont lines that have manufactured the Model S for over a decade will transition to producing the humanoid robot Optimus Gen 3, with low-volume manufacturing planned for 2026, according to TechTimes.

End of Model S and Model X

In the Q4 2025 earnings call, Musk granted an "honorable discharge" to the Model S and Model X. Production is expected to cease in Q2 2026 (June). The configurator might be closed by the end of Q1 2026 for new orders.

Tesla has not announced external customers for Optimus. In the same earnings call, Musk admitted that the robot is "not materially used in our factories".

Optimus Gen 3

• Redesigned hand intended for mass production.
• Low-volume production: target 2026 in Fremont.
• Massive scaling: 2027, with a dedicated megafactory at Giga Texas.
• Target price: ~$30,000 (goal, not confirmed price).

Pivot or Risky Bet?

Repurposing space that produced ~50,000 units/year of Model S/X to aim for millions of robots is an enormous scale jump. The ~50 actuators per arm make achieving the target price difficult. 2026 would be the year to test the manufacturing process, not to flood the market.

The move aligns with Tesla's narrative as a physical AI company (FSD, Robotaxi, Optimus) versus an automotive business under pressure in Europe and China.

Source: TechTimes, June 9, 2026. Teslarios is not affiliated with Tesla, Inc.