Tesla Shifts Focus to Robot Business; Shanghai Factory to Be Key for Optimus Mass Production

Tesla Vice President and China President Wang Hao stated that the company's strategic focus is shifting to the robot business, and the Shanghai factory is expected to be key to solving the mass production challenges of humanoid robots. Musk previously emphasized that mass production is a core challenge in humanoid robot manufacturing, and the Shanghai manufacturing system has the ability to address this issue.

To strengthen the AI business direction, Tesla will stop production of Model S and Model X in the second quarter and convert its Fremont factory in the US to produce Optimus robots. Research firm Omdia noted that Tesla delivered fewer than 500 general-purpose embodied intelligent robots in 2025, but its AI capabilities remain industry-leading. Additionally, the Shanghai factory delivered 851,000 pure electric vehicles in 2025, accounting for over half of global deliveries, and another Shanghai factory has started production of commercial energy storage business.