Fremont Factory Conversion Signals Full Pivot to Optimus Robotics Production

Feb 25, 2026 (20 hr ago)

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Tesla is aggressively converting its Fremont facility to manufacture Optimus robots, signaling a major strategic shift toward AI and automation.

Fremont Factory Conversion & Robotics Timeline

Tesla is winding down Model S and Model X production to convert the Fremont factory space into an Optimus robot manufacturing line3
Optimus volume production is targeted for late 2026, with an assembly line designed to produce 1 million units annually2, 3
Production of the CyberCab model, which operates without a steering wheel or pedals, is expected to begin in April3, 4

Recent Q4 results validated the strategy shift, showing the company can maintain 20%+ margins while moving away from pure volume chasing7
The company's valuation is increasingly tied to its AI and robotics ambitions, creating an 'AI or bust' scenario7
The energy segment posted its fifth consecutive record quarter of gross profit, reaching $1.1B, marking a 25% year-over-year increase3

Tesla is suing the California DMV to reverse a ruling that found the company falsely advertised its self-driving capabilities4
The DMV required revised marketing language, now referring to the system as Full Self Driving (Supervised)4
New crash data submitted to NHTSA suggests that robotaxis are less safe than human drivers based on incident statistics1
Jio is positioning its homegrown robots as a potential alternative to Optimus, with a commercial timeline estimated at four to five years2

European EV registrations fell 17% in January, continuing a 13-month streak of sales declines, linked to the lack of cheaper EV offerings1
The six-seater Model Y received official approval in Australia, fueling speculation regarding a potential U.S. market launch6