Tesla has begun early production of its humanoid robot Optimus at its Fremont, California factory, marking a pivotal step in Elon Musk’s broader push to reposition the company around physical AI and autonomous systems. The production update arrived alongside Tesla’s third-quarter financial results, which showed net income attributable to shareholders falling 43% year over year to $787 million from $1.373 billion.
Revenue was nearly flat at $28.046 billion compared to $28.095 billion in the same period a year earlier. Operating expenses jumped 39% to $4.776 billion, while operating income dropped 56% to $718 million. Tesla attributed the higher costs to increased AI research spending, larger stock-based compensation, and lower income from regulatory credits. The company still delivered 486,532 vehicles during the quarter.
Musk described the robotics effort as 'early production' and cautioned that the ramp-up could be 'somewhat bumpy.' He estimated Tesla could reach weekly production of 20,000 Optimus robots by the end of 2027. However, the company has not yet disclosed pricing or delivery timelines, and work remains on design, safety, and AI capabilities.
In a separate statement on X, Musk said Optimus and the purpose-built autonomous Cybercab would account for the vast majority of Tesla’s future value. He argued that only super intelligence, robots, solar power, and mass transport to space can scale to extraordinary economic size. According to Musk, success in super intelligence and robotics would naturally enable progress in the others. He also acknowledged the upcoming Roadster remains 'super cool' but is not central to Tesla’s long-term valuation.
Tesla is entering a humanoid robotics market already crowded with Chinese competitors. Counterpoint Research recorded more than 22,000 global shipments in the first half of 2026, up nearly 300% year over year, with five Chinese manufacturers accounting for 86% of shipments. More than 60% of those robots went to entertainment, performances, research, and data production rather than industrial use. Grand View Research expects the humanoid robot market to grow from $4.2 billion in 2026 to $40.5 billion by 2033, a compound annual growth rate of 38.2%.
Cost remains a major hurdle. McKinsey estimates actuators represent 40% to 60% of humanoid hardware costs, while Reuters reported that materials for an Optimus Gen 2 could cost $50,000 to $60,000 at low production volumes. Musk is targeting a long-term price near $20,000. The production start is a milestone, but Tesla must still prove reliability, customer demand, and meaningful cost reductions before Optimus becomes a profitable business.
