Tesla starts Optimus production in California as profit falls 43%

Tesla has started producing its Optimus humanoid robot at its Fremont, California factory. The first mass-produced units have begun shipping. The news came alongside Tesla's quarterly results, where net profit fell 43%.

Musk told listeners that reaching a pace of 20,000 Optimus units a week will take more than a year. Coverage of the call points to 2027 as the target for that rate. He also said Optimus robots would ship to outside customers by the end of 2027, and that an upcoming demo would not be 'canned'.

The financial picture is mixed. Revenue was flat, while expenses climbed sharply as Tesla pushed harder on Optimus, AI and autonomous driving. One report says Tesla cut its full-year capital spending guidance to $20 billion, and that shares reversed after-hours gains as Musk tempered the Optimus timeline.

Musk also said AI, through Optimus and Cybercab, will drive the majority of Tesla's future value. That frames the profit drop as the cost of a bet on robots and autonomy rather than on cars. Some coverage also notes safety concerns around the robots and outside views from robotics experts, though the excerpts give few details on either.

Our take

Starting production is a real milestone, but 20,000 a week is a long way off and Musk himself is stretching the timeline. Investors are being asked to accept falling profit now in exchange for a robot business that has no outside customers until late 2027.