Tesla CEO Elon Musk has acknowledged that the humanoid robot Optimus is still in the learning phase and is not very productive. However, an improved successor is set to be introduced soon. During the presentation of the latest quarterly results, Musk admitted that Optimus is not as useful as previously claimed. Despite this, Tesla plans to commence mass production of the humanoid robot later this year.
Initially, Musk had announced that Optimus would be deployed in production starting in 2025. However, he admitted to being premature in his projections as Tesla has produced significantly fewer units than promised. The robots are currently only marginally utilized in Tesla factories and are still learning, according to Musk during a conference call with analysts and investors.
Musk expressed that Optimus is still in the research and development phase and is at a rudimentary stage. The current version, Optimus Gen 2.5, is facing issues with its hands. Musk revealed plans for Optimus Gen 3, set to be launched in the first quarter of 2026, boasting significant upgrades, including a new hand. The introduction of Gen 3 will see the phasing out of older models, with Gen 3 being the version intended for mass production by Tesla at the end of the year.
The production of the robots is expected to take place at the Tesla factory in Fremont, California, with production slated to start in late 2026. To make room for the robot production, the manufacturing of the Model S and Model X will cease in the second quarter of 2026. Despite experiencing a decline in revenue for the first time in years in 2025, with profits down by 46%, Tesla is gearing up for the production of Optimus Gen 3 as part of its future plans.
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