Recently, during an earnings call, Tesla's CEO Elon Musk made an announcement that starting in the second quarter of 2026, Tesla will progressively halt the production of its two pioneering models, the Model S and Model X. The objective behind this strategic move is to clear up production lines, making way for the manufacturing of its in - house humanoid robot, Optimus.

Musk pointed out that the Model S and Model X have arrived at the conclusion of their product life cycles. In contrast, Optimus is anticipated to emerge as a major growth catalyst for Tesla in the foreseeable future. According to reports, Tesla's Fremont factory is set to undergo a transformation into an Optimus production hub, with an ambitious plan to reach an annual production goal of one million robots. This decision signifies Tesla's foray from being solely an automobile manufacturer into the realms of artificial intelligence and robotics technology.