Following its Q4 2025 earnings call announcement to end Model S and X production by Q2 2026, Tesla debuted its third-generation Optimus humanoid robot on February 2, 2026, via Weibo, confirming plans to repurpose Fremont factory lines for up to one million units annually amid EV sales declines. CEO Elon Musk highlighted Optimus's transformative potential in robotics.
Tesla's February 2, 2026, Weibo post introduced Optimus Gen 3, building on the prior earnings call confirmation to convert Model S and X production space at the Fremont, California, factory into a dedicated Optimus facility, targeting mass production by late 2026 and one million units per year long-term. This follows weakening demand, with Model S, X, and Cybertruck deliveries down 40% year-on-year in 2025.
Musk reiterated during the call: “We’re gonna take the Model S and X production space in our Fremont factory and convert that into an Optimus factory … with the long-term goal of having 1 million units a year of Optimus robots in the current SX space in Fremont.” Optimus's supply chain will be independent from automotive operations, using redesigned components for cost efficiency.
First teased at Tesla AI Day 2021, Optimus targets repetitive, dangerous, or labor-intensive tasks in factories and homes—from cleaning to surgery. Musk envisions universal adoption, likening it to 'a personal R2-D2 or C-3PO, but better,' and recently called it the first Von Neumann machine capable of building civilizations on new planets. Current prototypes operate at half human speed, with internal 2025 targets scaled back from initial 5,000 units.
The shift underscores Tesla's robotics focus amid EV market pressures, including Chinese competition and expiring U.S. tax credits. Musk's compensation ties to achieving one million units within a decade. The humanoid robot market could hit $370 billion by 2040 or $5 trillion by 2050, drawing over 90 competitors like Boston Dynamics and Hyundai; 2025 startup funding reached $2.65 billion. While critics see it as diverting from auto woes, Tesla's battery and manufacturing expertise offers edges.
