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Tesla has begun producing Optimus robots at its Fremont factory, using the space previously occupied by Model S and X production, with initial output focused on internal factory deployment through an “Optimus Academy” rather than commercial sales, as Musk describes the scaling challenge as the hardest manufacturing problem Tesla has ever faced.
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…