RE: LeoThread 2026-01-29 16-26

In 2025 the S/X made up an estimated 2.8% of Tesla’s total revenue and just 1.8% of vehicle deliveries.

Repurposing Fremont factory capacity to build Optimus could generate orders-of-magnitude more revenue, reduce CapEx and execution risk, and lower Optimus’ costs by leveraging an existing facility

With engineering headquarters and the Optimus team based in the Bay Area, locating initial volume production nearby should enable faster iteration and better execution during the early ramp

While the S/X have been long-appreciated, sunsetting them at this stage appears sensible

The decision to cancel the Model S and Model X to focus on robots has prompted many reactions; the dominant view is that the move is ill-advised