Target annual production of one million units! Tesla's third-generation Cybertruck is about to debut, Model S/X will be suspended in the second quarter to make way for mass production of robots

Tesla is moving its humanoid robot Optimus from concept to mass production. The company announced that the third-generation 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. Musk stated during Wednesday's earnings call that the company plans to stop production of the Model S and Model X in the second quarter of 2026, transforming the production line at the Fremont factory into an Optimus production line. This marks Tesla's official strategic shift towards the humanoid robot business.

According to Tesla's earnings 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 be launched by the end of 2026 and has already begun preparations for the capacity target of 1 million units per year.

Tesla's official latest Weibo emphasized that the third-generation humanoid robot is redesigned from first principles and can learn new skills by observing human behavior. According to insiders at Tesla, since Optimus has a completely independent supply chain, all components are designed based on first principles, and its mass production ramp-up period is expected to be longer than that of automotive products.

It is reported that this is Tesla's first humanoid robot aimed at mass production.

Mass Production Plan Faces Challenges

Tesla's humanoid robot project carries immense expectations, but the path to realization remains fraught with challenges. Musk previously predicted that Tesla would produce 5,000 robots by 2025, but this goal may not yet be achieved. He also stated that sales of Optimus to the public would begin "next year," predicting that these robots would not only work in Tesla factories but also serve as household assistants and even surgeons.

However, the rollout of Optimus has not been smooth. The project previously experienced remote control errors, and the head of Tesla's robotics business has recently left. Nevertheless, the strategic significance of humanoid robots to Tesla is increasingly evident, and the company's financial dependence on this prospect 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 production line means that Tesla will sacrifice the production capacity of two high-end models to make way for the robots, highlighting the company's strategic bet on the Optimus project. As the first quarter of 2026 release date approaches, the market will closely monitor whether Tesla can fulfill its mass production commitments