Tesla's Fremont factory drops Model S/X to build Optimus Gen 3 robots
Tesla has shut down Model S and Model X production at its Fremont, California plant and replaced those lines with assembly for the Optimus Gen 3 humanoid robot. The last Model S and X vehicles rolled off the line in early May 2026, ending runs of 14 and 11 years respectively. Elon Musk confirmed the conversion with photos posted alongside the engineering team, framing it as Tesla's biggest strategic pivot yet.
The factory switch
Fremont is no ordinary plant. Originally a Toyota-GM joint venture called NUMMI, Tesla bought it in 2010 and used it to launch the Model S in 2012 — the car that turned the company from a niche startup into a serious automaker. Roughly 610,000 Model S and X vehicles were built there. Now those lines are gone. Musk described the four-month teardown and rebuild as "incredibly fast," with new modular assembly equipment — some shipped from Germany — installed to handle the roughly 10,000 unique parts that make up each Optimus unit. Model 3 and Model Y production continues at Fremont; only the premium sedan and SUV lines were cleared.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
The competition it faces
Tesla is entering a market already shaped by Asian manufacturers. Chinese firms shipped roughly 90% of the approximately 13,000 humanoid robots sold globally in 2025, per the 2026 humanoid market snapshot. Unitree's G1 starts at $16,000; its R1 at $4,900. Against that price floor, Musk is targeting a $20,000–$30,000 consumer price by end of 2027, though current manufacturing cost is estimated at $50,000–$100,000 per unit. US-based competitors like Boston Dynamics and Figure AI are B2B-focused and nowhere near consumer price points, so Optimus would be in largely uncharted territory if it hits shelves at that range.
Fremont's stated capacity is 1 million units per year; Giga Texas is being prepared for a 10 million unit per year target starting 2027, per the Abundance Summit March 2026 announcement. Component deliveries have already begun, with full line production planned for summer 2026.
What's still unresolved
The $20K–$30K figure is a target, not a price tag. No consumer sales date is confirmed beyond "end of 2027," and Tesla has not disclosed a safety certification roadmap — which matters, since the FTC and CPSC will scrutinize any robot sold for home use. There's also no clarity on how tariffs on Chinese-sourced components will affect the final cost. Musk has added a broader pitch — that Optimus paired with Neuralink chips could help restore lost physical function — but that application remains speculative. For now, the factory conversion is real; everything else is still a projection.
