Tesla is quietly redrawing the map of humanoid robotics, shifting the center of gravity from California to Texas. The company is preparing Gigafactory Texas to build its Optimus robots at volumes that dwarf anything planned on the West Coast,

Tesla will discontinue the Model S and X this spring, converting Fremont production to its Optimus robot program.

East Bay officials are reacting to the news Tesla will stop producing its Model S and X vehicles at its Fremont factory, and switch to building Optimus humanoid robots, by year’s end.

Tesla will end production of its Model S sedan and Model X SUV and convert assembly lines at its California factory to manufacture Optimus humanoid robots, CEO Elon Musk said.

Musk said on Wednesday evening that Tesla’s humanoid robot, Optimus, was still in the R&D phase. Still, the company plans to unveil the third generation of its robot in the first quarter. Tesla also plans to convert its Model S and X assembly capacity in California to a robot assembly line.

Elon Musk is accelerating the development of Optimus humanoid robots, aiming for mass production to begin by late 2026. To facilitate this, Tesla will halt production of Model S and Model X SUVs, reallocating resources for robot assembly.

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