Tesla Begins Production of Optimus Humanoid Robot Amid Declining Quarterly Profit

Tesla announced that it has begun production of its Optimus humanoid robot at the Fremont, California plant, using space previously dedicated to electric-vehicle assembly. In its third-quarter letter to shareholders, the company said the units coming off the line are the first production-quality robots and that the current manufacturing process is suitable for a commercial product, though hardware and process iterations will continue.

Elon Musk told investors on a conference call that the rollout is "early production" and that the ramp-up will be gradual because the robot represents a new type of product. He projected a capacity of 20,000 units per week by the end of 2027, adding that design tweaks are needed to ensure safety, reliability and durability, and that further work on the AI system is required for the robot to handle open-ended tasks.

Tesla’s third-quarter financial results showed revenue of $28.04 billion, essentially unchanged from the same period a year earlier and slightly below the $28.09 billion recorded in the prior year’s quarter. Vehicle sales generated about $20 billion in revenue, with deliveries of 486,532 cars, a modest increase from the previous quarter but lower than a year ago. The solar and energy-storage segment fell 16% year over year to $2.8 billion, a decline the company attributed to tariff-related customer refunds. By contrast, the services segment, which includes Full Self-Driving subscriptions, grew 33% to $4.6 billion.

Net income for the quarter was $787 million, a 43% decline from $1.37 billion a year earlier. Higher spending on artificial-intelligence projects and the Optimus robot, along with reduced regulatory-credit sales, weighed on profitability. The company remained profitable largely because its "services and other" segment generated a record $734 million in gross profit.

The information reflects statements made during Tesla’s quarterly earnings call.