The spending increase comes as Tesla winds down Model S and Model X production and reallocates manufacturing capacity toward Optimus robots, deepening its reliance on businesses that are still pre-revenue or early in deployment. The company said it will convert the Fremont, California, factory space used for Model S and Model X into a dedicated Optimus facility, targeting long-term capacity of 1 million robots per year. “It is time to bring the S and X programs to an end and shift to an autonomous future,” he said. Tesla expects to unveil Optimus Gen 3 in the coming months, which Musk described as a significant leap in capability. “We wouldn’t expect to have any kind of significant Optimus production volume until probably the end of this year,” Musk said.