US EditionElon Musk is betting Tesla’s future isn’t about cars at all
Tesla commits $20 billion and repurposes Fremont factory to build up to 1 million Optimus humanoid robots annually, targeting sales by end of 2027, amid declining EV profits.
- On Wednesday, Tesla said it will convert the Model S and Model X production space at its Fremont factory into an Optimus factory, announced on its earnings call.
- Weak EV sales and shareholder incentives pushed Tesla toward the Optimus bet after a record 9% 2025 EV sales decline and a pay plan approved late last year.
- Technical hurdles include finalizing the arm and hand design as Tesla struggles with hardware, and internal production targets fell from at least 5,000 to 2,000 and were lowered again.
- Musk projected Optimus could generate $10 trillion, with analysts noting Tesla's potential internal and external margins, raising stakes for shareholders' pay plan.
- Amid rising competition from established robotics firms, experts estimate the humanoid market at $370 billion to $5 trillion, with broad deployment expected in at least a decade.
19 Articles
19 Articles
Elon Musk initiates the biggest strategy change in Tesla's company history. It's not about cars, but about AI, robotics, autonomy and popcorn.
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Elon Musk is betting Tesla’s future isn’t about cars at all
By Hadas Gold, CNN (CNN) — Tesla dominated the electric vehicle industry by the mid-2010s with sleek, fast cars that helped combat the public perception that EVs were severely limited by short ranges. Now the company – and its controversial CEO, Elon Musk – face stiffer competition and political headwinds. Its EV sales fell by a record 9% in 2025, amid increasing rivalry from China and the expiration of the US EV sales tax credit. But Musk has b…
Tesla hires his two expensive car models. The future, says Elon Musk, belongs to robots, AI and self-driving cars without a steering wheel. Can this work well?
Tesla Reorients From Premium EVs To Optimus Robots And xAI Future
Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Tesla is shifting away from Model S and Model X production to focus on mass manufacturing its Optimus humanoid robots, repurposing its California factory for this new line. The company is expanding its autonomous [...]
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Tesla’s Cybertruck certainly made headlines when it was first unveiled, and company chief Elon Musk said he had almost two million pre-orders as it neared production; but now, with last year’s sales of it down by some 48% compared to 2024, Musk is suggesting the truck could pivot from a consumer vehicle to an autonomous package delivery truck. Musk made the comment during the automaker’s fourth-quarter 2025 earnings call, when Tesla also announc…
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