Annual target of one million units! Tesla’s third-generation Optimus will be unveiled soon, Model S/X production to be halted in Q2 to make way for mass production of robots.

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Tesla is moving its humanoid robot Optimus from concept to mass production. The company announced that the third generation of Optimus will debut in the first quarter of 2026, with a target annual production capacity of 1 million units.

To achieve this goal, Tesla will make significant production adjustments. During Wednesday’s earnings call, Musk stated, the company plans to stop production of the Model S and Model X in the second quarter of 2026 and convert the production line at the Fremont factory for Optimus. This marks Tesla’s official strategic shift toward the humanoid robot business.

According to Tesla’s financial report, the third-generation Optimus will see significant upgrades compared to version 2.5, including the latest hand design. The company stated that the first production line will start before the end of 2026, and preparations for the goal of producing one million units annually have already begun.

Tesla’s latest official Weibo emphasizes that the third-generation humanoid robot is redesigned from first principles and can learn new skills by observing human behavior. According to Tesla insiders, as Optimus has its own completely independent supply chain, with all components designed based on first principles, the ramp-up period for mass production is expected to be longer than that of vehicles.

Reportedly, this is Tesla’s first mass-produced humanoid robot.

Mass Production Plan Faces Test

Tesla’s humanoid robot project carries enormous expectations, but the path to realization is still full of challenges. Musk previously predicted that Tesla would produce 5,000 robots in 2025, but this target may not yet be achieved. He also stated that Optimus will be sold to the public “next year”, and predicted these robots would not only work in Tesla factories but also become home assistants and even surgeons.

However, the launch process for Optimus has not been smooth. The project previously faced remote control errors, and the head of Tesla’s robotics business recently resigned. Nevertheless, the strategic significance of humanoid robots for Tesla is becoming increasingly prominent, and the company’s financial reliance on this vision is deepening. Musk’s $1 trillion compensation plan is also tied to this, requiring him to produce at least 1 million robots.

The transformation of the Fremont factory’s production line means Tesla will sacrifice the production capacity for two high-end models to make way for robots, highlighting the company’s strategic bet on the Optimus project. As the Q1 2026 launch date approaches, the market will closely watch whether Tesla can fulfill its mass production commitment.

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