Tesla is winding down Model S and Model X production to free up capacity for its Optimus humanoid robot and robotaxi program. The company is prioritizing autonomy, AI and robotics, including a reported $2 billion investment in Elon Musk's xAI and plans for an in house chip facility called TeraFab.

Elon Musk said at the World Economic Forum in Davos that Tesla plans to offer its Optimus humanoid robots for public sale by the end of 2027, setting a target for the program. Speaking with BlackRock CEO Larry Fink on Thursday,

Tesla is quietly redrawing the map of humanoid robotics, shifting the center of gravity from California to Texas. The company is preparing Gigafactory Texas to build its Optimus robots at volumes that dwarf anything planned on the West Coast,

The company is converting Model S and X production space to manufacture 1 million humanoid robots.

The Austin push is planned for February, insiders told Business Insider. Tesla has been training Optimus in its Fremont factory for more than a year.

Tesla’s humanoid robot Optimus has crossed a line that once belonged firmly to science fiction, moving from carefully staged demos to agile, simulation-trained movement that looks startlingly human. In new footage,

Tesla's Optimus robot handed out candy by New York's Nasdaq building. Optimus was plugged in, and it is unclear whether the robot was tele-operated by a human. Tesla's humanoid robot previously handed out candy at the company's "Frunk or Treat" event.