Electric-vehicle maker Tesla, Inc. has officially begun installing its first-generation production lines for the humanoid robot known as Optimus, regarded by CEO Elon Musk as the company’s most ambitious product to date. The update appears in Tesla’s third-quarter 2025 earnings report and was further detailed during the subsequent investor call.
In the earnings call, Musk revealed plans to scale production of Optimus to as many as one million units annually by the end of 2026, stating that the manufacturing “would begin towards the end of next year”, although he cautioned that the ramp-up would require time.
Production-Intent Prototype and Design Evolution
Tesla also plans to unveil a “V3” version of Optimus in the first quarter of 2026, likely around February or March, which Musk described as “so real that you’ll need to poke it, I think, to believe that it’s actually a robot.” He further emphasised that, unlike traditional car production, hardware designs for Optimus will not be frozen atthe start-line: continuous improvements will be baked in even after production begins.
Manufacturing Challenges and Supply-Chain Build-out
Transitioning from cars to humanoid robots presents a novel challenge: Tesla lacks a pre-existing supply chain for such devices. “With cars, you’ve got an existing supply chain… With a humanoid robot, there is no supply chain,” Musk explained. The company thus plans to manufacture very deep into the supply chain, embracing vertical integration.
Particularly challenging is the robot’s hand and forearm, which Musk described as “more difficult than the entire rest of the robot” because of the dexterity required. Reports indicate this has led Tesla to adjust earlier production targets: while the company initially aimed for 5,000 units in 2025, it now expects roughly 2,000.
Testing and Deployment Scope
Tesla’s facilities in Palo Alto currently host Optimus prototypes, running around-the-clock to test navigation and utility within factory settings. These trial robots serve both engineering and public relations purposes as Tesla refines the technology ahead of external roll-out.
Broader Strategic Implications
This push into humanoid robotics underscores Musk’s long-term vision: Optimus is positioned as more than a factory assistant; it is part of Tesla’s larger ambition in AI, automation and robotics that could ultimately rival its automotive business. Analysts point out that while the car business still dominates revenues, the robotics segment is being cultivated as a high-growth frontier.
Despite the bold target for 2026 volume production, Tesla’s robotics effort remains early-stage, the prototype V3 is still months away, core components such as hands remain under technical obstacles, and full-scale manufacturing is yet to begin. For now, Tesla is signalling that the era of mass-produced humanoid robots may be closer than previously believed, though many engineering and market hurdles remain.
