# Tesla starts Optimus production as profit crashes 43%

> Tesla has begun manufacturing its Optimus humanoid robot in California while reporting a sharp drop in quarterly earnings driven by heavy spending on AI and robotics.
- Title: Tesla starts Optimus production as profit crashes 43%
- Summary: Tesla has begun manufacturing its Optimus humanoid robot in California while reporting a sharp drop in quarterly earnings driven by heavy spending on AI and…
- Keywords: tesla, optimus robot, humanoid robots, manufacturing, fremont california, earnings, elon musk, artificial intelligence, technology, startups, starts, Optimus
- Source: TechCrunch — https://techcrunch.com/2026/10/21/tesla-stars-optimus-robot-production-in-california-as-profit-falls-43
- Author: Kirsten Korosec, Sean O'Kane
- Published: 2026-10-21T20:33:09+00:00
- Read time: 1 min
- Topics: tesla, optimus robot, humanoid robots, manufacturing, fremont california, earnings, elon musk, artificial intelligence, technology, startups
## Tesla begins Optimus production
Tesla has started manufacturing its Optimus humanoid robot at its Fremont, California factory in a space previously used for electric vehicle production.
## First production-quality robots
Tesla says the robots coming off the line are the first production-quality bots it has manufactured, though it will continue iterating on hardware and manufacturing.

> The bots coming off this line are the first production-quality bots that we have manufactured.
## Musk calls it early production
CEO Elon Musk described the launch as early production with a slow and somewhat bumpy ramp because Optimus is such a radically new product.

> early production
## Twenty thousand per week by 2027
Musk claimed Tesla will be able to make twenty thousand Optimus robots per week by the end of twenty twenty-seven, though significant work remains on design and AI.
## Profit plummets forty three percent
Tesla's third-quarter net income fell forty three percent to seven hundred eighty seven million dollars from one point three seven billion dollars in the same period last year.
## Revenue flat, expenses soar
Tesla's third-quarter revenue was twenty eight point zero four billion dollars, essentially flat compared to twenty eight point zero nine billion dollars in the third quarter of twenty twenty-five.
## EV sales and other segments
Electric vehicle sales were flat at twenty billion dollars.Services revenue grew thirty three percent year-over-year to four point six billion dollars, but solar and energy storage fell sixteen percent to two point eight billion dollars.
## AI and Optimus drain profits
Tesla's spending on artificial intelligence projects and the Optimus robot took a significant bite out of profits, outpacing revenue growth and offsetting gains elsewhere.
## Key takeaway

Tesla started Optimus robot production at its Fremont factory but saw third-quarter profits fall forty three percent as spending on AI and robotics outpaced revenue growth.