Tesla Reportedly Prioritizing Optimus
Tesla recently shared a new image of its Optimus humanoid robot, fueling speculation about its development progress. Social media discussions suggest the company might shift its focus by stopping production of its Model S and X vehicles to accelerate the manufacturing of Optimus and the forthcoming Cybercab.
- The decision to halt Model S and X production by the end of Q2 2026 is part of a strategic pivot, reallocating resources to projects CEO Elon Musk views as central to Tesla's future, such as robotics and AI. These two models represented only about 3% of Tesla's total vehicle deliveries in 2025. - The factory space at the Fremont, California plant currently used for the Model S and X will be repurposed to manufacture the Optimus robot. Tesla's stated goal is to eventually produce up to one million humanoid robots annually from this facility. - The Optimus robot's control system is an adaptation of the same AI used for Tesla's Full Self-Driving (FSD) software, leveraging the company's vast real-world data from its vehicle fleet for robotic navigation and decision-making. The AI training compute required for Optimus is projected to be ten times greater than that needed for Tesla's vehicles. - The latest iteration of Optimus, Gen 3, stands 1.73 meters tall, weighs 57 kg, and features 22-degree-of-freedom, tendon-driven hands designed for human-like dexterity. As of early 2026, over 1,000 Optimus units are reportedly operating within Tesla's own factories performing tasks like sorting battery cells. - Elon Musk has stated that he views Tesla's future as being primarily an "AI and robotics" company, predicting that the Optimus business could eventually become more significant than the automotive division and potentially grow Tesla into a $25 trillion company. - The shift is supported by a planned capital expenditure of over $20 billion in 2026 to fund initiatives including Optimus, the Cybercab, and related AI and battery development. - While initial production of Optimus is expected to be "agonizingly slow," according to Musk, limited sales are planned for late 2026, with mass production ramping up in 2027. - The Cybercab, a separate project, is a two-passenger autonomous vehicle with no steering wheel or pedals, planned to enter production in Q2 2026. It is designed for a dedicated robotaxi service and will feature inductive charging.
