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Tesla's humanoid robot production line is advancing in two lines, and Musk said it is "the most difficult mass production ramp in the history"

2026-07-23·newswire-us-stock-050540
Tesla's humanoid robot production line is advancing in two lines, and Musk said it is "the most difficult mass production ramp in the history".

On July 23, Beijing time, Tesla released its second quarter financial report for 2026. The company's total revenue in the second quarter was US$28.236 billion, a year-on-year increase of 26%; net profit attributable to common shareholders was US$1.114 billion, a decrease of 5% from US$1.172 billion in the same period last year.

Tesla's capital expenditures have received a lot of attention. It invested nearly US$5.8 billion and its free cash flow became negative for the first time in more than two years. This is mainly due to Tesla's expansion of autonomous driving, artificial intelligence and robotics businesses.

Tesla’s financial report shows that it has currently suspended the Model S and Model The first batch of manufactured Optimus robots will be used in the "Optimus Academy" to collect training data and further develop various functions.

It is understood that the dedicated production line for humanoid robots at the Fremont, California, factory plans to have an annual production capacity of 1 million units. At the same time, Tesla is preparing the second production line of robots at the Texas Gigafactory.

Its long-term design annual production capacity is 10 million units and is expected to be put into production around next summer. During the second quarter results conference call, Tesla CEO Elon Musk also responded to analysts’ questions about the mass production and supply chain of humanoid robots.

Musk said that he has invested heavily in the production and manufacturing of Optimus robots. The mass production of humanoid robots is the most difficult manufacturing climb in Tesla's history. Almost all components are brand new, there is no ready supply chain, and a large number of links can only be completed within the company.

In the previous Q1 results conference call, Musk also emphasized the difficulty of mass production of Optimus.

"When faced with a brand-new product, a brand-new production line, and tens of thousands of independent parts, each one must be accurate to achieve ramp-up mass production." Musk said that Optimus will be very slow in the initial stage because tens of thousands of independent problems must be solved one by one to achieve large-scale mass production.

As for the initial application scenarios, they plan to start with simple skills in the factory and then gradually expand. Previously, many industry insiders revealed to China Business News that part of the reason for the delay in the third generation of Tesla Optimus was related to dexterity.

Musk also revealed during the meeting that the Optimus benchmark even surpassed human hand dexterity. Musk also mentioned in his reply that all Optimus's dedicated power electronics products and circuit boards are self-developed and designed by Tesla and are manufactured by external suppliers.

The fourth-generation Optimus will be launched on a new production line in Austin. The degree of vertical integration of the supply chain will be increased, and the production capacity target will be an order of magnitude higher than that of the third generation.

According to previous media reports, Tesla recently issued specific Optimus parts procurement guidelines, requiring suppliers to increase production capacity to 1,000 units/week in September this year, and then to 2,000-2,500 units/week by the end of the year.

Many industry insiders have previously mentioned in interviews that mass production of Tesla robots would be a boon to China’s supply chain. This conference call also introduced that the design of the next-generation AI 5 inference processor chip has been completed, and the chip will be mainly used in humanoid robots and data centers.

Musk called the AI 5 chip "the most outstanding AI inference chip in edge computing currently" and revealed that momentum has been accumulated for the design of AI 6. It is worth mentioning that rumors of a merger between Tesla and SpaceX have been circulating in the market recently.

Musk did not respond directly and said that the earnings call was not the place to discuss company mergers. At the close of trading on Wednesday Eastern Time, Tesla's share price fell 1.3% and SpaceX's share price fell 6.7%.

#Stocks #Tesla #AI #Semiconductors #Earnings

Full text

Tesla's humanoid robot production line is advancing in two lines, and Musk said it is "the most difficult mass production ramp in the history"

On July 23, Beijing time, Tesla released its second quarter financial report for 2026. The company's total revenue in the second quarter was US$28.236 billion, a year-on-year increase of 26%; net profit attributable to common shareholders was US$1.114 billion, a decrease of 5% from US$1.172 billion in the same period last year. Tesla's capital expenditures have received a lot of attention. It invested nearly US$5.8 billion and its free cash flow became negative for the first time in more than two years. This is mainly due to Tesla's expansion of autonomous driving, artificial intelligence and robotics businesses.

On July 23, Beijing time, Tesla released its second quarter financial report for 2026. The company's total revenue in the second quarter was US$28.236 billion, a year-on-year increase of 26%; net profit attributable to common shareholders was US$1.114 billion, a decrease of 5% from US$1.172 billion in the same period last year. Tesla's capital expenditures have received a lot of attention. It invested nearly US$5.8 billion and its free cash flow became negative for the first time in more than two years. This is mainly due to Tesla's expansion of autonomous driving, artificial intelligence and robotics businesses. Tesla’s financial report shows that it has currently suspended the Model S and Model The first batch of manufactured Optimus robots will be used in the "Optimus Academy" to collect training data and further develop various functions. It is understood that the dedicated production line for humanoid robots at the Fremont, California, factory plans to have an annual production capacity of 1 million units. At the same time, Tesla is preparing the second production line of robots at the Texas Gigafactory. Its long-term design annual production capacity is 10 million units and is expected to be put into production around next summer. During the second quarter results conference call, Tesla CEO Elon Musk also responded to analysts’ questions about the mass production and supply chain of humanoid robots. Musk said that he has invested heavily in the production and manufacturing of Optimus robots. The mass production of humanoid robots is the most difficult manufacturing climb in Tesla's history. Almost all components are brand new, there is no ready supply chain, and a large number of links can only be completed within the company. In the previous Q1 results conference call, Musk also emphasized the difficulty of mass production of Optimus. "When faced with a brand-new product, a brand-new production line, and tens of thousands of independent parts, each one must be accurate to achieve ramp-up mass production." Musk said that Optimus will be very slow in the initial stage because tens of thousands of independent problems must be solved one by one to achieve large-scale mass production. As for the initial application scenarios, they plan to start with simple skills in the factory and then gradually expand. Previously, many industry insiders revealed to China Business News that part of the reason for the delay in the third generation of Tesla Optimus was related to dexterity. Musk also revealed during the meeting that the Optimus benchmark even surpassed human hand dexterity. Musk also mentioned in his reply that all Optimus's dedicated power electronics products and circuit boards are self-developed and designed by Tesla and are manufactured by external suppliers. The fourth-generation Optimus will be launched on a new production line in Austin. The degree of vertical integration of the supply chain will be increased, and the production capacity target will be an order of magnitude higher than that of the third generation. According to previous media reports, Tesla recently issued specific Optimus parts procurement guidelines, requiring suppliers to increase production capacity to 1,000 units/week in September this year, and then to 2,000-2,500 units/week by the end of the year. Many industry insiders have previously mentioned in interviews that mass production of Tesla robots would be a boon to China’s supply chain. This conference call also introduced that the design of the next-generation AI 5 inference processor chip has been completed, and the chip will be mainly used in humanoid robots and data centers. Musk called the AI 5 chip "the most outstanding AI inference chip in edge computing currently" and revealed that momentum has been accumulated for the design of AI 6. It is worth mentioning that rumors of a merger between Tesla and SpaceX have been circulating in the market recently. Musk did not respond directly and said that the earnings call was not the place to discuss company mergers. At the close of trading on Wednesday Eastern Time, Tesla's share price fell 1.3% and SpaceX's share price fell 6.7%.

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