Tesla has halted production of its Model S and Model X, dismantling all existing automobile production facilities just 46 days after delivering its 1 million wonth cumulative all-electric vehicle globally, to construct a humanoid robot "Optimus" Yangsan line in their place. Industry analysts view this as a strategic shift from an "electric vehicle manufacturer" to an "AI and robotics company." The decision was driven by opportunity costs: the annual delivery volume of the Model S and Model X in 2025 is projected at approximately 60,000–80,000 units, representing less than 4% of Tesla’s total deliveries. The Fremont factory line, designed for an annual capacity of 100,000 units, has been operating at only 60–70% utilization, resulting in fixed and depreciation losses amounting to $200 million–$300 million (approximately 270 billion–410 billion won) annually. Tesla is converting approximately 20,000–30,000 square meters previously occupied by the S and X lines into production space for Optimus. With Optimus priced at $25,000 (approximately 34 million won) per unit, an initial weekly production target of 100 units would generate over $1.3 billion (approximately 1.78 trillion won) in new annual revenue. Tesla’s automotive margin declined from above 25% in 2022 to around 15%, and its market share in China contracted to below 5%. CEO Elon Musk stated