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Tesla Shifts Focus to Optimus Robots, Ending Model S and X Production
Elon Musk predicts Optimus robots will "eliminate poverty" and transform Tesla's identity by the end of 2026.
Published on Feb. 15, 2026
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Tesla is planning to shutter its Model S and Model X electric vehicle lines this year and use the factory space in its Fremont, California facility for production of the Optimus humanoid robot. CEO Elon Musk envisions the Optimus robots being used in both factories and residences, taking on tasks from household chores to caring for the elderly and children. With over 97% of Tesla's vehicle deliveries in Q4 2025 being the Model 3 and Model Y, the company sees more potential in the Optimus robot project.
Why it matters
Tesla's shift away from its traditional electric vehicle lines and toward the Optimus robot represents a major transformation for the company. Investors are anticipating big things from the Optimus, with predictions that it could help Tesla reach a $2 trillion market cap by the end of 2026 and $3 trillion by 2027 based on the growth of its full self-driving software and robotics.
The details
Tesla is pouring resources into the development of the Optimus humanoid robot and its full self-driving software. The company plans to use the factory space from shuttering the Model S and Model X lines to focus on Optimus production. Musk envisions the Optimus robots being used for a wide range of tasks, from household chores to caring for the elderly and children. Analysts believe Tesla's focus on real-world AI development makes it the best physical AI company in the world and will change how investors value the company.
- Tesla plans to shutter its Model S and Model X electric vehicle lines this year.
- Musk does not expect the Optimus robots to be for sale to the general public until the second half of 2027.
The players
Elon Musk
The CEO of Tesla who envisions the Optimus robots "eliminating poverty" and transforming Tesla's identity by the end of 2026.
Dan Ives
An analyst at Wedbush Securities who says Tesla's focus on real-world AI development makes it the best physical AI company in the world and will change how investors value the company.
What they’re saying
“Optimus robots are coming”
— Elon Musk (fool.com)
“Tesla's focus on real-world development of AI makes it the best physical AI company in the world, and will change how investors value the company.”
— Dan Ives, Analyst, Wedbush Securities (fool.com)
What’s next
Musk does not expect the Optimus robots to be for sale to the general public until the second half of 2027.
The takeaway
Tesla's shift away from its traditional electric vehicle lines and toward the Optimus robot project represents a major transformation for the company, with the potential to significantly increase its market value if the Optimus is successful.
