According to finance.biggo.com, Tesla has entered mass production for its humanoid robot Optimus, issuing component supply orders to Chinese partners and initiating line conversion at its Fremont factory in California this year.
Mass Production Launches Amid Supply Chain Buildout
Tesla has formally transitioned Optimus from prototype development to mass production, with the first dedicated assembly line scheduled to begin operations at the Fremont factory in California during 2024. According to Chinese media outlet 36Kr Japan, citing LatePost, Tesla has requested suppliers deliver components for 1,000 units per week by September 2024 — scaling to 2,000–2,500 units per week by year-end. This implies an annual component capacity of approximately 100,000 units.
Tesla’s executive leadership finalized specifications for Optimus Gen 3 in late June following three years of iterative development, signaling a hard stop on major design changes ahead of volume manufacturing. The company has deployed a dedicated sourcing team in China and is engaging multiple local manufacturers for core mechanical components including sensors, motors, and reducers. Longstanding Tesla Tier 1 suppliers Sanhua Intelligent Controls and Tuopu Group are identified as strong candidates for key subsystems.
Global Supplier Integration Beyond China
While China anchors the mechanical supply chain, Tesla is diversifying critical material sourcing across Asia. On June 24, South Korean materials firm ICH confirmed it had completed qualification testing for high-performance polyurethane (PU) foam and secured a mass production supply deal for Optimus. The PU foam provides lightweight resilience, shock absorption, and long-term durability essential for joint actuation and repetitive walking cycles — marking ICH’s first commercial extension of ultra-lightweight mobile IT material technology into robotics.
This move reflects a broader strategic alignment: Elon Musk, CEO of Tesla, explicitly named Samsung Electronics, TSMC, and Panasonic as foundational semiconductor partners for AI compute infrastructure supporting both Optimus and the planned robotaxi fleet. Musk emphasized that unlike electric vehicles — which leveraged existing automotive supply chains for wheels, glass, and chassis — robots require “an entirely new supply chain to be built from scratch.”
Fremont Factory Transformation and Financial Trade-offs
During Tesla’s second-quarter earnings call on July 22, Musk announced the decommissioning of the Model S and Model X production lines at the Fremont factory to install the first-generation Optimus mass production line. Initial shipments are slated for the second half of 2024. According to Tesla’s Q2 shareholder update, production of “other models” (including S/X) totaled 8,822 units, while sales reached 12,364 units — representing less than 3% of Tesla’s total vehicle deliveries of 480,000 in the quarter.
The repurposing leverages existing cleanrooms, automated guided vehicle (AGV) pathways, and assembly stations — shortening the conversion timeline by more than one year compared to building a greenfield facility. Yet financial strain is mounting: Tesla reported Q2 revenue of $28.236 billion, up 26% year-on-year, but operating income plunged 57% to $398 million, yielding an operating margin of just 1.4%. Free cash flow turned negative at $1.092 billion.
Musk’s Three Core Manufacturing Challenges
Musk characterized Optimus as “
the most difficult product to ramp that Tesla has ever made
,” citing three interlocking hurdles. First, achieving human-level dexterity — particularly in the hands — requires custom-developed motors, gears, and sensors. Second, constructing a de novo supply chain: “
With electric vehicles, there was an existing automotive supply chain… but that’s not the case for robots
.” Third, integrating AI with physical interaction through real-world learning — a process Tesla calls “falling and bumping into things” — at its Optimus Academy, where early units will perform material transport, inventory checks, equipment inspection, and simple assembly.
Market projections for 2026 remain conservative: analysts estimate 20,000 to 30,000 units annually, with the vast majority allocated to internal data collection rather than external sales. Revenue contribution remains distant — a reality underscored by Musk’s shift from earlier optimism about “10 billion robots by 2040” to pragmatic warnings about prolonged ramp timelines.
Source: finance.biggo.com
Compiled from international media by the SCI.AI editorial team.
