Tesla CEO Musk says Optimus robot will be toughest product to mass‑produce

Elon Musk told investors that the Optimus humanoid robot could become “the biggest product ever,” but acknowledged that it is "the most difficult product to industrialise" in Tesla’s history. Production of the Model S and Model X at Fremont has been halted to repurpose the lines for Optimus, and a second line is being prepared at Gigafactory Texas with a target capacity of up to 10 million units a year.

Musk warned that the robot’s rollout will be slower than expected. Optimus contains about 10,000 unique components, none of which previously existed in Tesla’s supply chain, forcing the company to develop new parts with partners such as Samsung and TSMC. Chinese firms dominate the market for actuators, motors and sensors, controlling roughly 70 % of the global supply, adding further complexity. The robot also needs a human‑level dexterous hand, a capability no manufacturer has yet replicated.

Tesla’s capital spending rose 142 % YoY to $5.79 billion in Q2, pushing free cash flow into the red at a $1.09 billion loss, and the firm reaffirmed a $25 billion capex plan for 2026. The first Optimus units off the Fremont line are slated for internal use in an "Optimus Academy" rather than customer delivery.