Tesla has started building its Optimus humanoid robot at its Fremont, California factory. At the same time, its third-quarter profit fell 43%. Tesla shared both facts in its shareholder letter on 21 October 2026. Here are the numbers, what Tesla said about Optimus and what is still unknown.
Optimus Production Begins
TechCrunch reports that Tesla started producing Optimus at the Fremont plant, a site once dedicated to making electric vehicles. In its shareholder letter, Tesla said: “The bots coming off this line are the first production-quality bots that we have manufactured.” DigitalToday says Tesla calls the process suitable for a commercial product, and that it will keep improving the hardware and manufacturing.
Tech Insider reports that Elon Musk described early production on a high-volume line and warned that the ramp-up would be “somewhat bumpy.” He said he expects current bottlenecks to be solved “around the end of next year,” which means about the end of 2027, and that success depends on “10,000 things” going right. This is from one outlet, so treat the wording as reported and not verified.
What Tesla Has Not Said
- How many robots: No production volume or target was given in the reports I read. Tech Insider links to an earlier report of about 1,000 units a week, but says it is not verified as current output.
- Price: Not disclosed.
- Sales to outside customers: No timeline was given. Tech Insider says sales to outsiders look unlikely before late 2027, which is its own prediction.
- Robot revenue: Unconfirmed.
Third-Quarter Results
| Measure | Q3 2026 | Change |
|---|---|---|
| Net profit | $787 million | Down 43% from $1.37 billion in Q3 2025 |
| Total revenue | $28.04 billion | About flat (Q3 2025: $28.09 billion) |
| EV sales | About $20 billion | Flat |
| Vehicle deliveries | 486,532 | About 6,000 more than last quarter, fewer than a year ago |
| Energy storage and solar | $2.8 billion | Down 16% |
| Services and other | $4.6 billion | Up 33% |
These figures are as reported by TechCrunch and DigitalToday. Tesla said energy storage and solar revenue fell partly because of tariff-related customer refunds. Services and other earned a record gross profit of $734 million, which helped keep the company profitable.
Why Profit Fell
TechCrunch says spending on AI and Optimus “took a big bite out of profits,” and that lower sales of regulatory credits also hurt. DigitalToday names higher spending on Optimus, AI and autonomous driving as a factor. Neither article gives the exact amount spent on these projects, and neither reports the capital spending figure or overall profit margins. The reports I read do not give earnings per share either.
The profit drop reflects spending and margin pressure. It does not yet show any return from the robot.
Why It Matters
- Tesla’s car sales have been flat, and it is putting money into robots, driverless cars and AI.
- Investors are watching whether these bets can make up for slower car profits.
- Optimus is still at an early stage. Making a few robots is very different from making thousands that work reliably.
Tech Insider notes that Optimus depends on outside chip supply, which it says has already shown strain. No other company’s comparable production milestone was reported, but the article does not judge how capable Optimus is at volume.
Does This Affect Pakistan?
Not directly. No plan to sell Optimus in Pakistan has been reported.
Frequently Asked Questions
Where is Optimus being built?
At Tesla’s Fremont, California factory.
How much did Tesla’s profit fall?
43%, to $787 million in the third quarter.
Can I buy an Optimus?
Not yet. No price or sales date has been given.
How many robots will Tesla make?
Unknown. No official volume has been shared.
Why did profit fall?
Higher spending on AI and Optimus and lower sales of regulatory credits, according to the reports.
Tesla has moved Optimus from a showpiece to a production line, but it has not shown that the robot will make money. The next few quarters will show whether the spending pays off.
