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Tesla kills Model S sedan, Model X crossover to free factory space for Optimus humanoid robot

30 Jan, 2026
Tesla kills Model S sedan, Model X crossover to free factory space for Optimus humanoid robot

Tesla Announces Strategic Shift in Vehicle Production to Prioritize Optimus Robot Development

DETROIT – Tesla has announced plans to reduce the number of vehicle models it produces in order to dedicate more resources to the development and manufacturing of its Optimus humanoid robots. This strategic adjustment was revealed during the company's fourth-quarter earnings call, signaling a significant reorientation of its manufacturing priorities.

Focus on Optimus Robot Production

The company indicated that it intends to streamline its vehicle lineup, potentially phasing out certain car models. This decision is driven by the goal of freeing up production capacity and internal resources that will be redirected towards the scaling of Optimus robot manufacturing. While specific vehicle models were not named as being discontinued, the overarching objective is to accelerate the company's advancement in robotics.

Manufacturing Capacity and Resource Allocation

Tesla executives emphasized that the decision to reduce vehicle model complexity is a calculated move to support the ambitious goals for Optimus. By simplifying its automotive production, the company aims to enhance efficiency and leverage its manufacturing expertise for a new, high-priority product line. This reallocation of resources is intended to bolster Tesla's position in the emerging field of humanoid robotics.

In summary, Tesla is strategically scaling back its vehicle model offerings to accelerate the production and development of its Optimus humanoid robots. This shift in focus is a key component of the company's future manufacturing strategy.