Tesla reallocates lines to Optimus

Elon Musk framed the move on Tesla’s Jan. 28, 2026 fourth-quarter earnings call as an “honorable discharge” for the Model S and Model X and told investors “if you’d like to own one of them, now’s a good time to place your order.” (cnbc.com)) Tesla told investors the Fremont space tied to those older programs will be reworked around its next Optimus “Gen 3” design and the company has publicly reiterated a target capacity goal of roughly 1 million Optimus units per year for the Fremont line. (assemblymag.com)) On the same call, Musk acknowledged Optimus remains in R&D and said no Optimus units are currently doing “useful work” in Tesla’s factories, calling deployment “not in usage in our factories in a material way.” (electrek.co)) Separately, Tesla has been ramping its Cybercab/robotaxi program out of Giga Texas, where the company rolled a first steering‑wheel‑less Cybercab off the line in mid‑February 2026 and reaffirmed a sub‑$30,000 price target for later mass variants. (electrek.co)) The earnings release that accompanied the announcements showed revenue down year‑over‑year (a roughly 3% drop to about $24.9 billion that quarter) even as Tesla outlined roughly $20 billion in planned capital spending tied to cars, batteries and robotics and disclosed a separate ~ $2 billion commitment tied to xAI. (cnbc.com)) Tesla’s own volume mix underscores the strategic shift: about 1.59 million Model 3/Y deliveries dominated the company’s 2025 volume while “Other Models” (the S, X and Cybertruck bucket) delivered roughly 50,850 units, leaving the S/X as only a small slice of current production. (cnbc.com)) Local and regional fallout surfaced quickly — Tesla Korea set an explicit March 31, 2026 cut‑off for new S/X orders, and Fremont’s mayor, Raj Salwan, called Tesla’s choice to expand robotics at the Fremont site a vote of confidence in the local manufacturing ecosystem. (teslarati.com))