Tesla is advancing Optimus toward mass production with the unveiling of its third-generation design this quarter, introducing a completely new supply chain and expecting to increase headcount at the Fremont facility to support significantly higher output in robotics. Tesla (TSLA) is pivoting its manufacturing strategy by discontinuing production of the Model S sedan and Model X SUV, reallocating resources at its Fremont, California factory to produce Optimus humanoid robots. Optimus, envisioned as a versatile bipedal robot for tasks ranging from industrial applications to household assistance, is progressing toward mass production. For consumers, the phase-out of Model S and Model X, which debuted in 2012 and 2015 respectively, signals the end of an era for Tesla’s premium lineup. As Tesla refocuses, the emphasis on Optimus could diversify its portfolio, mitigating reliance on EV sales amid fluctuating demand and regulatory landscapes in the automotive sector.