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Tesla has released time-lapse footage showing the decommissioning of its original Model S and Model X assembly line at Fremont in 46 days, with limited Optimus Gen 3 production expected to begin in late July or August 2026 on the converted space targeting one million units per year at full ramp.
Tesla is converting its Fremont Model S and Model X line to produce one million Optimus robots annually, but with no consumer sales until late 2027 at the earliest and a $20,000-$30,000 retail price, the company faces a significant unresolved demand question as its automotive gross margins turn negative.
Tesla built its last Model S and Model X at Fremont on May 9, ending a combined 14-year production run as the company converts the assembly space to manufacture Optimus humanoid robots, targeting one million units per year.