Tesla Halts Model S/X Production to Bet Big on Optimus Humanoid Robot

Tesla announced it will largely halt production of the Model S and Model X to focus resources on advancing its humanoid robot project, Optimus. During the Q4 earnings call, CEO Elon Musk stated that the Fremont factory will be retooled to produce Optimus, and he expects this business to eventually account for 80% of the company’s market value. He also noted that China’s strengths in AI and manufacturing will intensify competition in the humanoid robotics sector. Chinese automakers, including Li Auto, have already accelerated their entry into this space, planning to rapidly launch related products. Given the significant overlap—70% in technical architecture and over 60% in supply chain—between intelligent vehicles and humanoid robots, automakers can enter the robotics field at relatively low cost. Morgan Stanley forecasts the global robotics market will reach $25 trillion by 2050. Industry analysts expect competition between Tesla and Chinese automakers in this sector to reach a boiling point by 2027.