Tesla starts Optimus robot production in California as profit falls 43%

Tesla has started production of its Optimus humanoid robot at its Fremont, California factory, marking the first commercial production of the robot. The company claims that the bots are production-quality, though it acknowledges that the manufacturing process is still being refined. Elon Musk stated that the ramp will be slow and "somewhat bumpy" due to the product's novelty. He outlined that Tesla aims to produce 20,000 Optimus robots per week by the end of 2027, but emphasizes that the design and AI will still need significant improvements for the robot to be safe and reliable. The production of Optimus robots has contributed to a 43% decline in Tesla's third-quarter profits, as the company's revenue was flat and expenses increased due to the accelerated rollout of its AI and autonomous driving projects. Tesla's revenue was $28.04 billion, a slight drop from the previous quarter, and its services business grew 33% year-over-year, generating $4.6 billion in revenue. However, the company's overall profitability was negatively impacted by its heavy investment in AI and robotaxi projects. Tesla's net income fell to $787 million, a 43% decrease from the same period in 2025. The company's revenue from solar and energy storage declined by 16% year-over-year, attributed to tariff-related customer refunds. Tesla executives expressed optimism about the future of its FSD product, despite delays in the release of the unsupervised version. The unsupervised version would enable Level 4 autonomous driving capabilities, and Musk indicated that it might be released in the fourth quarter of this year.

AI-generated summary of the original article — see the source for the full story.