Tesla CEO Elon Musk announced on April 23, 2024 during the company’s earnings call that the automaker will launch large-scale production of its Optimus humanoid robot, with the first production line targeting output beginning in July or August 2024 at the Fremont factory. The third-generation Optimus is expected to debut in mid-2026 with an initial production capacity target of 1 million units annually.
Optimus Humanoid Robot Production Plans
Tesla disclosed its most comprehensive production roadmap for Optimus to date. According to the earnings report, the company will begin preparing its first commercial production line in Q2 2026 at the Fremont factory, directly replacing existing Model S and Model X production lines. The production line is designed to achieve an annual capacity of 1 million robots.
Musk characterized the third-generation Optimus as exceptionally advanced, stating it “basically looks like a person, and people can easily mistake it for a human.” The robot will feature sufficient local intelligence to operate without network connectivity and can work unsupervised for hours. Tesla has also introduced the concept of “Digital Optimus,” indicating the robot may eventually extend into digital labor domains beyond physical manufacturing and logistics.
Tesla is simultaneously preparing for larger-scale expansion, with its Texas Gigafactory preparing a second-generation production line targeting long-term capacity of 10 million robots annually. The company’s earnings report classified the current production line status as “under construction,” with specific production timelines and delivery schedules not yet disclosed.
Capital Expenditure and Strategic Investment
Musk stated that Tesla’s capital expenditure will increase significantly based on the investment roadmap, noting that “given expected substantial revenue growth, such investment is entirely justified.” Tesla CFO Vaibhav Taneja disclosed that full-year 2024 capital expenditure will exceed $25 billion, raising the prior guidance of $20 billion.
Tesla emphasized core technology investments including batteries, powertrains, AI software, AI training, chip design and manufacturing. The company is also strengthening supply chains for batteries, energy systems, and AI chips.
AI Computing Infrastructure: Terafab and AI5 Chip
To support its AI infrastructure, Tesla is advancing its computing and chip capabilities. The company has deployed its Cortex 2 AI training cluster and completed design of the next-generation AI5 inference chip while continuing its Dojo 3 self-developed chip project.
Musk revealed that Tesla plans to use Intel’s 14A manufacturing process for Terafab. He stated: “Given that by the time Terafab scales, 14A will likely be quite mature and ready for large-scale deployment, using 14A appears to be the right choice, and we maintain good cooperation with Intel.” Intel’s stock rose more than 3% after-hours following this announcement.
In March 2024, Tesla formally announced the Terafab project, projected to deliver over 1 terawatt (1TW) of annual computing output, integrating chip design, lithography, manufacturing, advanced packaging, and testing. Some chips produced will directly power Tesla electric vehicles and humanoid robots. Intel subsequently announced joining the project.
Regarding self-developed chips, Tesla completed the final design of its next-generation AI5 inference processor in April 2024, primarily for humanoid robots and data centers. Since AI4 hardware already achieves unsupervised autonomous driving safety exceeding human levels, AI5 currently has no urgent need for vehicle deployment. Musk called AI5 “the best AI inference chip currently available in edge computing,” noting that AI6 design work has gained strong momentum.
Full Self-Driving (FSD) Advancement
Tesla’s intelligent driving assistance V14.3 was pushed to customers in North America in April 2024. This version better handles “long-tail” extreme scenarios with improved perception clarity and faster reaction speeds in low-visibility conditions, reducing inference latency by up to 20%.
Musk stated that V14.3 represents the final piece of the unsupervised FSD puzzle, but Tesla will complete significant architectural improvements before large-scale deployment of driverless FSD, as these enhancements significantly improve safety and convenience.
Regarding subsequent versions, Musk revealed that V15 FSD is expected by year-end 2024 or early 2025, featuring comprehensive software architecture redesign to further enhance safety levels. Musk also disclosed that unsupervised driverless FSD is expected to launch in Q4 2024 using a gradual rollout strategy, with expansion to additional regions only after safety validation in specific areas.
Tesla’s latest intelligent driving safety report shows cumulative autonomous driving mileage has exceeded 9.38 billion miles (approximately 15.1 billion kilometers), with urban road driving exceeding 3.37 billion miles (approximately 5.42 billion kilometers). In market deployment, Tesla received intelligent driving approval in the Netherlands in April 2024, clearing the path for approval in other EU markets.
Robotaxi Business Expansion
Tesla’s Robotaxi (autonomous ride-hailing) business continues advancing, with paid miles nearly doubling quarter-over-quarter in Q1 2024.
The first production unit of Tesla’s Cybercab autonomous electric vehicle completed assembly at the Texas Gigafactory in February 2026. This vehicle pioneered the elimination of steering wheels and foot pedals, redesigning interior space specifically for autonomous driving. Upon entering mass production, Cybercab will begin replacing existing Model Y fleet vehicles and become the largest vehicle type in the fleet long-term.
Tesla’s autonomous ride-hailing service has expanded to Houston and Dallas, Texas, with safety drivers eliminated. Operating vehicles use the same Tesla intelligent driving AI4 hardware as retail vehicles. Musk emphasized that Tesla has experienced zero accidents or injuries in Robotaxi operations to date.
As of 2025, the service has launched operations in Austin, Texas and the San Francisco Bay Area, with four regions now offering autonomous ride-hailing service. Three Texas cities are expanding the proportion of vehicles operating without safety drivers.
According to Tesla’s prior expansion plan, the first half of 2026 will see autonomous ride-hailing launches in five cities across Arizona, Florida, and Nevada, with gradual elimination of in-vehicle safety drivers.
Regarding future planning, Musk stated that by year-end 2024, unsupervised autonomous driving and Robotaxi services are expected to expand to a dozen or more U.S. states. He noted that Robotaxi revenue may not be particularly significant this year but will produce major impact next year.
Electric Vehicle Business Performance
Despite Tesla’s ambitious AI strategy, electric vehicle business remains the core revenue and profit pillar. Q1 2024 EV revenue reached $16.234 billion, up 16% year-over-year, representing the core share of the company’s $22.387 billion total revenue.
Tesla’s Cybercab and Tesla Semi electric truck are confirmed to begin mass production this year, with the new Roadster model expected to debut soon. The company faces sustained global market demand, with backlog orders reaching the highest level for the period in over two years.
Musk stated that Cybercab and Tesla Semi, as products with entirely new supply chains, will have very slow initial production but will show exponential growth by year-end and into next year. Tesla will focus on increasing production capacity across all factories and vehicle models for the remainder of this year.
He also disclosed that the new Tesla Roadster may debut in about a month, representing “one of the most exciting product launches ever” with “the most spectacular demonstration ever.” Long-term, Tesla’s product line will consist almost entirely of autonomous vehicles of various sizes, with the new Roadster as the only model still requiring human driving.
Against a backdrop of rising global oil prices, pure electric transportation’s economic advantages are becoming evident. Musk noted that Tesla experienced supply-demand imbalance in Q1 2024, creating the highest first-quarter backlog in over two years.
On the manufacturing side, Tesla faces ongoing capacity constraints. The company identified battery supply—particularly battery pack capacity—as the key factor limiting vehicle production ramp-up. To address this, Tesla is accelerating localized battery and material production, including LFP batteries, cathode materials, and lithium refining projects.
