The move aims to redirect production lines at the Fremont, California, plant toward large-scale production of humanoid robots, dubbed “Optimus,” with the goal of reaching a production of one million robots per year.
This decision comes in the wake of a decline in electric vehicle sales and a decline in the company’s annual revenues in 2025 for the first time since its founding. Despite the risks associated with this transformation, Tesla is betting on investing more than $20 billion in artificial intelligence and robotics projects, as Musk believes that Optimus will represent the company’s largest market value in the future, outperforming the traditional automobile sector.
While investors showed cautious optimism after recent quarterly earnings exceeded expectations, experts express doubts about the readiness of robotics technology for widespread commercial use, considering that abandoning the luxury car sector represents a huge risk, despite being a bold step towards the future of mass automation.
