Tesla has officially begun mass production of its humanoid Tesla Optimus, marking a major step toward scaling robotics manufacturing. The first-generation robots are already being produced at the Fremont facility, where the pilot production line is designed for a capacity of up to 1 million units per year.
Simultaneously, Tesla is preparing for a much larger expansion near Giga Texas, where groundwork has begun for a dedicated Optimus manufacturing plant. The northern campus is expected to expand by over 480,000 square meters by the end of 2026, with total investments estimated between $5 billion and $10 billion. Tesla’s long-term goal is to scale production to as many as 10 million robots annually.
The expansion at Giga Texas goes beyond robotics. It will also support projects like Terafab—a joint initiative involving Tesla, SpaceX, and xAI—as well as infrastructure such as a Cybercab test track. The facility already spans roughly 2,500 acres with more than 930,000 square meters of production space, making it one of Tesla’s largest industrial hubs.
A key differentiator in Tesla’s strategy is the tight integration between AI development and manufacturing. The site hosts Cortex 1 and Cortex 2 computing clusters, equipped with over 230,000 NVIDIA H100 GPUs. This setup is designed to unify software training and hardware production within a single ecosystem.
The company also confirmed the development of its next-generation AI5 chip, specifically tailored for robotics applications. According to Tesla’s roadmap, sales of Optimus robots could begin by the end of 2027, with an expected price range between $20,000 and $30,000.
On the engineering side, new details reveal that the Optimus V3 robotic arm uses a tendon-based actuation system, with motors placed in the forearm to improve precision and efficiency.
With aggressive production targets and deep AI integration, Tesla is positioning Optimus as a cornerstone of its future business, potentially transforming both industrial automation and consumer robotics markets.
