Elon Musk has clarified that the initial production of Tesla’s Optimus V3 humanoid robot will be extremely limited due to the complexity of the project. Musk stated that the company is building an entirely new manufacturing system, which will lead to a slow start in production.
Optimus Production to Start Slowly
Musk responded to speculation that Tesla is ahead of schedule on Optimus production, saying that the initial ramp will be slow because everything is new and the company is not just making a car. He emphasized that this is a unique project with approximately 10,000 unique parts that must work together, creating many possible bottlenecks in production.
Fremont Factory Shifts from Cars to Robots
The comment came a day after Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory. The image showed Musk with his arms crossed among workers wearing hard hats and safety vests. Tesla has converted production space at Fremont, including lines previously used for the Model S and Model X, to support initial assembly of Gen 3 Optimus robots.
Production Timeline
Pilot production is expected to begin this summer at Fremont. A second, much larger Optimus factory is under construction at Giga Texas. High-volume production is not expected until around summer 2027, with Tesla targeting a long-term capacity of 10 million robots annually.
Deliveries Report to Refocus Tesla Investors
Tesla and Musk have described Optimus as the company’s “biggest product ever,” arguing its long-term value could eventually surpass the electric vehicle business. Tesla’s near-term vehicle business will also come back into focus when the company reports second-quarter deliveries.
Investor Projections
Investor Gary Black of The Future Fund has projected roughly 410,000 deliveries, above consensus, while Ross Gerber of Gerber Kawasaki has said Tesla had a “solid” quarter after predicting sales could rise as higher gas prices tied to the Iran war pushed more buyers toward electric vehicles.
Price Action
Tesla shares were down 0.45% to $423.38 during after-market hours on Wednesday.
Key Points
- Elon Musk expects initial Optimus production to be very limited due to complexity
- Tesla is building an entirely new manufacturing system for Optimus production
- Pilot production is expected to begin this summer at Fremont
- High-volume production is not expected until around summer 2027
- Tesla is targeting a long-term capacity of 10 million robots annually