Elon Musk releases the latest Optimus video, stating that production is expected to start this summer, aiming for a million units of capacity by 2027.

Tesla is moving the Optimus humanoid robot from demonstration to full-scale factory production.

On March 25, Tesla released a new video of Optimus through official channels, showcasing for the first time the robot’s core hardware designs—including the reduction gearboxes and dexterous hands—and the research and development environment, demonstrating tangible progress in engineering.

Elon Musk then stated that production of Optimus 3 is expected to begin this summer, with plans for mass production by 2027, targeting an initial annual output of 1 million units.

Meanwhile, Tesla announced a special recruitment drive on March 25, opening over 100 Optimus-related positions across its U.S. facilities, covering artificial intelligence, engineering, and manufacturing—marking a record-high hiring scale. These actions indicate that Optimus has shifted from a fringe project to a core strategic pillar of the company, directly impacting Tesla’s valuation trajectory.

Musk envisions a broader future—ultimately, Optimus could surpass Tesla’s automotive business and generate up to $10 trillion in revenue. This ambitious goal has attracted widespread market attention, though investors are currently more focused on whether the mass production timeline can be met.

Large-Scale Hiring Accelerates Production Deployment

Tesla’s current Optimus recruitment effort involves over 80 to 100 positions, with more than 50% in AI algorithms and manufacturing engineering roles. These include robot software engineers, mechanical integration engineers, manufacturing engineers, and AI engineers focused on world modeling and video generation.

Notably, some positions require candidates to build scalable data pipelines for the Optimus production line and develop automation tools for large-scale manufacturing—shifting the recruitment language from prototype development to factory-scale production logic. The official announcement also emphasizes the need for “large-scale production capability,” aligning closely with Musk’s strategic directive to “achieve high output as soon as possible.”

Production Timeline and Factory Upgrades

Tesla’s infrastructure adjustments for Optimus mass production were confirmed during the Q4 2025 earnings call on January 28. Musk announced that the company will cease Model S and Model X production and repurpose the relevant lines at the Fremont, California factory for Optimus manufacturing—signaling a clear move to prioritize the humanoid robot project over Tesla’s oldest vehicle assembly lines.

Additionally, Tesla has begun construction of a dedicated Optimus manufacturing facility at its Texas Gigafactory, with a long-term planned annual capacity of 10 million units.

However, technical bottlenecks remain. Although Tesla claims to have made breakthroughs in core technologies, issues such as hand reliability and thermal management still require further validation during actual mass production. Following a typical S-curve of manufacturing growth, Optimus 3 is expected to enter small-batch production by summer this year, with initial capacity limited. Large-scale expansion is projected for 2027.

Controversy Over Optimus Vision Continues

Musk’s business logic is based on labor economics: if Optimus can perform repetitive physical tasks at scale and low cost, the potential market is enormous. Early target industries include manufacturing assembly, material handling, quality inspection, and warehouse logistics. Long-term plans extend to household, medical, and broader logistics scenarios. Musk’s ultimate goal is to push Optimus toward smartphone-level adoption.

Valuation-wise, debates over how much the market has priced in Optimus’s vision continue. As of March 25, Tesla’s stock was around $278, while GF Value’s valuation for TSLA was $253.41, marked as “significantly overvalued.” This indicates that Optimus’s mass production progress and commercialization capabilities are key variables influencing Tesla’s valuation trajectory.

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