Elon Musk, Tesla
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In a surprising turn of events, Tesla is killing off two of its car models to focus on making humanoid robots that are set to be released in 2027.
The Fremont factory will still manufacture Model 3 and Y, but the space where Model S and X are made will instead focus on mass production of Tesla's Gen 3 Optimus robots.
CEO Elon Musk says the company will close down production of two older car models, S and X, and convert the Fremont factory to produce its Optimus robots instead.
Instead of rolling out new car models, Musk is also betting that Tesla’s future is providing robotaxis as a service. It stands to reason why the company needs to find a new growth area. The US giant lost its crown as the world’s top-selling EV brand to China’s BYD in 2025,