Tesla AI Chief Says Optimus Has 'Big Shoes to Fill' After Model S, X Line Closure

Ashok Elluswamy, Tesla Inc.'s (NASDAQ: TSLA) artificial intelligence lead, hailed the sunset Model S and Model X premium vehicles as the Fremont facility prepares for Optimus humanoid robot production.

In a post on X, Elluswamy quoted a tweet about the closure of the Model S and Model X production lines at the Fremont factory, commenting that the Optimus robot has 'big shoes to fill.'

Details

The praise comes amid reports that Tesla is closing the Model S and Model X production lines at its Fremont, California factory to make room for the Optimus humanoid robot. Tesla has not officially announced a timeline for mass production of the robot, but recent moves suggest an accelerated schedule.

Context

The Model S and Model X are pioneering vehicles that put Tesla on the map, with the Model S first introduced in 2012 and the Model X in 2015. However, Tesla is now focusing on higher-volume models like the Model 3 and Model Y, as well as its robotics and autonomous driving projects.

What This Means for Investors

Tesla's shift from luxury cars to humanoid robots signals a strategic move to diversify revenue streams and leverage its expertise in AI and manufacturing. This could have a positive impact on the company's long-term valuation, but also carries execution and regulatory risks.