The Austin automaker picked a California plant to produce Optimus 3. But Tesla's next-gen Optimus 4 humanoid will be produced in Texas, Elon Musk says.

Tesla Inc. is facing a difficult road ahead after deliveries of its fully electric vehicles declined for a second year in a row and were overtaken by Chinese rival BYD Co. on an annual basis for the first time.

In the Q4 earnings call for Tesla, Elon Musk said the Fremont factory would stop production of Model S and X vehicles, and instead, it will pivot to producing Optimus robots.

CEO Elon Musk recently provided encouraging updates on Tesla's autonomous driving and humanoid robotics technology.

Tesla’s annual profit plunged to its lowest level since the pandemic five years ago as it lost the title of the world’s biggest electric vehicle maker to a Chinese rival and boycotts hammered sales.

Speaking at the World Economic Forum in Davos, Switzerland last week, Musk said that Tesla is “planning to make its Optimus robots available for sale to the public by the end of 2027.” That is when Tesla will be confident that the robots will be highly reliable, safe and functional. The robots will be able to perform any task, he said.

As early as three years ago, Tesla started sourcing and engaging with hundreds of Chinese component suppliers, working closely with some on research and development as well as hardware design, according to people who are not authorised to publicly discuss these collaborations.

Experts have questioned the decision for Tesla to axe two of its electric vehicles from its lineup amid plans for Elon Musk to turn the automaker into an AI-focused robotics company. Tesla CEO Elon Musk confirmed earlier this week that the Model S and Model X would be axed from its lineup as it looks to wind down production towards the end of the