Tesla Optimus Production Line Goes Live at Fremont Factory After Model S and X Exit
Tesla has converted the space once occupied by Model S and Model X assembly at its Fremont factory into a Tesla Optimus production line for the Gen 3 humanoid robot. CEO Elon Musk shared a photo from the factory floor earlier this week, confirming the transition alongside the Optimus team after walking the new line.
The move follows Tesla's decision to end Model S and Model X production in the second quarter of 2026, with the final units rolling off the line in early May. Since then, portions of the former assembly area have been reconfigured to support early Optimus manufacturing activities, shifting the focus at the landmark facility from vehicle production to humanoid robotics.
How the New Tesla Optimus Production Line Works
The production setup for Optimus differs from a traditional automotive assembly line. Tesla has implemented a modular approach made up of multiple sub-assembly lines instead of a single linear system. This method is meant to handle the high volume of unique components and the technical complexity of building a humanoid robot from scratch.
During Tesla's first-quarter earnings call, Musk said Optimus production would begin in late July or August. His appearance alongside the Fremont team this week is consistent with that timeline, indicating the company is still on track for an initial ramp soon.
That ramp will start slowly. Musk has described early output as extremely slow, given that Tesla is building a manufacturing system that has no direct precedent in its vehicle operations. Equipment installation and process refinement need to happen before the Tesla Optimus production line can reach higher volumes.
Long-Term Targets and Pricing
Tesla's long-term goal is to produce up to one million Optimus units per year at the Fremont facility alone. At a target price under $20,000 per unit, the humanoid robot business could eventually generate more revenue than Tesla's electric vehicle operations, a notable ambition for a product line that has not yet shipped in volume.
The Gen 3 Optimus is being designed for mass manufacturing from the outset. Tesla intends to use the robot for automating dangerous or repetitive tasks, positioning it as a labor solution for industrial environments. The company sees this market as potentially larger than its core automotive business, though it remains in the early stages of validating its production approach.
What the Fremont Conversion Means
Converting the Model S and Model X production area is a practical decision. Those vehicle lines were among Tesla's oldest, and demand had been declining for years. Rather than leaving the space idle, Tesla is repurposing it for what it believes is its next major growth driver. The modular sub-assembly layout should make it easier to scale production over time as the company refines its methods.
The near-term focus is on getting the line running and proving the manufacturing concept. The weeks ahead will show whether the late-summer production target holds, but the factory conversion itself is a concrete step toward making Optimus a real product rather than a prototype.
Photo by Brecht Corbeel on Unsplash
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