Tesla Inc. is decommissioning the production lines for its Model S and Model X vehicles at the Fremont facility to prepare for the manufacturing of the Optimus humanoid robot. The shift in production capacity marks a significant strategic pivot for the electric vehicle manufacturer as it prioritizes robotics.

Optimus Production Begins

Ashok Elluswamy, Tesla's artificial intelligence lead, highlighted the transition on social media, noting the legacy of the outgoing premium vehicles. "Big shoes to fill, but I’m confident Optimus will not disappoint!!" Elluswamy stated in a post on X. The company had previously announced that the first production line for Optimus was successfully installed at the facility.

Tesla CEO Elon Musk has projected that the humanoid robot could eventually require up to 40 production lines due to its complex design. Musk also emphasized the potential healthcare applications of the robot, suggesting it could provide greater access to excellent health needs through artificial intelligence.

Model Y Sales Performance

While the Fremont facility undergoes retooling, Tesla's Model Y SUV continues to perform strongly in international markets. The vehicle reclaimed the title of the best-selling vehicle across all powertrain and fuel options in China in June 2026.

The company recently launched the U.S.-spec Model Y L, priced at $61,990. This three-row variant, previously exclusive to the Chinese market, is also being assessed for a potential launch in Europe.

Tesla shares were down 1.33% to $402.33 during premarket trading on Monday.

Investor Ross Gerber of Gerber Kawasaki stated on Saturday that he prefers Tesla Inc.'s Cybertruck over his Rivian Automotive Inc. electric vehicle. The investor described the preference as a "controversial" opinion, noting that the Cybertruck suits his usage patterns well, particularly as a summer vehicle. The comments were made via a post on X.

Despite his preference for the hardware, Gerber criticized Tesla's autonomous driving software. He suggested that the company's Full Self-Driving (FSD) technology should be renamed to "pretty good self-driving" or "PGSD." Gerber argued that while the system performs well in most situations, it is not advanced enough to achieve Level 3, 4, or 5 autonomy. He previously classified the system as Level 2 on the Society of Automotive Engineers (SAE) scale.

Future EV Outlook

Gerber expressed optimism regarding the future of electric trucks. He stated that he is looking forward to new models from Rivian, including the R2 crossover SUV. He also mentioned anticipation for the customizable EV pickup truck from Slate Auto, which is backed by Jeff Bezos and priced at $25,000. Additionally, Ford Motor Co. was recently testing its $30,000 EV pickup truck prototype in Phoenix, Arizona.

Regulatory Scrutiny

Tesla's FSD system is currently facing regulatory scrutiny following a fatal crash in Texas involving a Model 3. The incident, which resulted in the death of a 76-year-old woman, has prompted investigations by both the National Highway Traffic Safety Administration (NHTSA) and the National Transportation Safety Board (NTSB). Tesla AI Chief Ashok Elluswamy had previously indicated that the system could receive improvements, specifically regarding natural-language voice commands for precise drop-off locations.

Tesla shares were down 0.04% at $407.59 during the trading after-hours session on Friday.