Tesla has started production of its Optimus humanoid robot at its factory in Fremont, California, a manufacturing space once dedicated to making electric vehicles, the company announced on Wednesday.
“"The bots coming off this line are the first production-quality bots that we have manufactured," Tesla wrote in its third-quarter letter to shareholders. "While we will continue to iterate on the hardware and manufacturing process, we have proven that the current manufacturing process for Optimus is suitable for a commercial product."
Financial Performance
Despite this forward-looking development, Tesla's third-quarter earnings were disappointing, reflecting a company at the midpoint of a major bet. The company's revenue was flat while expenses surged as it accelerated investments in Optimus robots, AI, and autonomous driving technologies. The result was a 43% drop in profits.
- Revenue from EV sales was flat year-over-year at $20 billion.
- Tesla delivered 486,532 vehicles in the third quarter, about 6,000 more than the previous quarter, but fewer than in the same period last year.
- Total third-quarter revenue was $28.04 billion, slightly below the $28.09 billion generated in the third quarter of 2025.
- Revenue was also about $200 million lower than the previous quarter’s total of $28.23 billion.
