Tesla to Dismantle Model S and X Production Lines… Betting Everything on Optimus Robot in Yangsan

*This content was translated by AI.

Tesla has abruptly halted production of the Model S and Model X, which served as the brand’s foundation and pioneered the premium market. Just 46 days after delivering its 1 million wonth cumulative all-electric vehicle globally, Tesla dismantled all existing automobile production facilities and is now constructing a humanoid robot "Optimus" Yangsan line in their place. Industry analysts widely view this not merely as a vehicle replacement but as a strategic transformation—fundamentally shifting from an "electric vehicle manufacturer" to an "AI and robotics company."

Low-Utilization Line Surgery… Saving $300 Million Annually, Potential for $1.3 Billion in Revenue

The decision to dismantle was driven by a rigorous calculation of opportunity costs. The annual delivery volume of the Model S and Model X in 2025 is projected at approximately 60,000–80,000 units, representing less than 4% of Tesla’s total deliveries. This alone raised concerns about crisis. Additionally, the Fremont factory line, designed for an annual capacity of 100,000 units, has been operating at only 60–70% utilization, resulting in fixed and depreciation losses amounting to $200 million–$300 million (approximately 270 billion–410 billion won) annually.

According to North American foreign media reports on the 12th, Tesla is converting the core site of approximately 20,000–30,000 square meters previously occupied by the S and X lines into production space for Optimus. With Optimus priced at $25,000 (approximately 34 million won) per unit, achieving an initial weekly production target of just 100 units would generate over $1.3 billion (approximately 1.78 trillion won) in new annual revenue. Furthermore, the sharp decline in Tesla’s automotive margin from above 25% in 2022 to around 15%, coupled with a contraction of its market share in China to below 5%, underscores the necessity of surgical intervention on underutilized lines.

Musk: "Developing 10,000 New Parts… Hardest Project in Yangsan History"

Elon Musk, CEO of Tesla, has consistently emphasized that "Tesla is not merely an automobile company but an AI and robotics company." Regarding the line dismantling completed within just 46 days, Musk expressed confidence, stating, "Completely removing existing lines and laying down new ones to begin operations within four months is a speed no other company in the world has achieved."

However, he also acknowledged the challenges of mass-producing robots. Musk noted, "Optimus will become the largest product in history, yet scaling up mass production will be the most difficult challenge," adding, "Since we cannot use existing automotive parts, over 10,000 components must be entirely newly developed." He further warned that delays in any single slowest or problematic part among the 10,000 could stall overall production, suggesting that the initial production curve would be flat and prolonged.

Aiming for 11 Million Units Annually… Tesla and Supply Chain Cut Their Retreat Lines

Tesla is advancing mass production of Optimus centered around its Fremont plant (annual capacity: 10 thousand won units) and Texas Austin facility (annual capacity: 1 million won units). During project meetings, Musk reportedly issued a stern warning: "If we fail to achieve a weekly production target of 2,000–2,500 units by year-end, the entire responsible team will be fired."

In response to Musk’s ultimatum, the supply chain has reacted swiftly. Some Chinese partners have reportedly allocated 70% of their factory production capacity to manufacturing Tesla robot components and are also proceeding with new factory construction. The space freed up by dismantling automobile production lines is becoming the stage for realizing Tesla’s declared future as an "AI and robotics company."

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*This content was translated by AI.