Tesla has commenced preliminary production of its Optimus humanoid robots at its Fremont facility in California, with CEO Elon Musk ambitiously projecting a manufacturing capacity of 20,000 robots per week by the end of 2027.
Highlights
- Elon Musk anticipates that Optimus robots could ultimately represent 80% of Tesla’s total worth.
- Initial production of Optimus has begun at the Fremont factory in California.
- The company aims for a weekly output of 20,000 humanoid robots.
- Commercial deliveries to external clients are expected by late 2027.
Tesla Initiates Production of Optimus Robots, Musk Envisions 80% of Company’s Future Value in Humanoid Robotics
New Delhi, October 24, 2026: Tesla has launched early-stage production of its Optimus humanoid robots in its Fremont facility in California, representing a pivotal advancement in Musk’s vision to evolve Tesla from purely an electric vehicle manufacturer into a leader in artificial intelligence and robotics.
Musk has previously asserted that advancements in humanoid robotics could ultimately account for approximately 80% of Tesla’s overall valuation, underscoring the firm’s increasing emphasis on automation and advanced robotic solutions.
Tesla Sets Ambitious Target of 20,000 Robots Weekly
During Tesla’s third-quarter earnings call on October 21, Musk verified that initial production has begun on the company’s ambitious high-volume manufacturing line in Fremont.
He stated that Tesla’s objective is to achieve a production rate nearing 20,000 Optimus robots each week, although reaching such a scale may require at least an additional year.
At this rate, Tesla could potentially produce over one million humanoid robots per annum.
However, Musk recognized that the scaling of production would occur incrementally due to the intricate technical challenges involved in creating humanoid robots.
Optimus: A Catalyst for Tesla’s Transformation
Optimus is engineered to execute various physical tasks relying on artificial intelligence, sophisticated sensors, and advanced robotic mechanisms.
Tesla envisions these humanoid robots aiding in operations across factories, warehouses, and diverse commercial environments.
Musk is convinced that this technology could become one of Tesla’s pivotal offerings, potentially spawning a business segment larger than its conventional electric vehicle endeavors.
The organization is focused on enhancing the robot’s mobility, dependability, durability, and versatility in task performance without incessant human oversight.
Anticipated Commercial Deliveries in 2027
Tesla is projecting that commercial deliveries of Optimus robots to external businesses will commence around late 2027.
Nevertheless, Musk mentioned that further enhancements are essential to perfect the robot’s hardware, artificial intelligence, and production dependability prior to embarking on large-scale commercial distribution.
Furthermore, Tesla must establish a robust supply chain capable of supporting high-volume manufacturing.
The company has characterized its initial Fremont robots as production-ready units, while acknowledging that additional refinements are required.
Tesla’s Profit Decline of 43%
This robotics initiative transpires as Tesla grapples with financial strain stemming from escalated investments in artificial intelligence, autonomous driving, and manufacturing capabilities.
The firm’s profit for the third quarter plummeted by 43%, while revenue remained largely unchanged.
Despite these financial hurdles, Tesla is steadfast in its investment in Optimus and autonomous technologies, viewing them as potential long-term growth catalysts.
The initiation of Optimus production signifies a significant milestone; however, Tesla’s ability to scale production and realize substantial revenue from humanoid robots remains to be conclusively demonstrated.
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