Tesla faces production hurdles and staff resistance in Optimus rollout

Tesla is encountering significant operational difficulties as it transitions its manufacturing focus from electric vehicles to humanoid robotics. The company’s shift toward producing the Optimus robot is being complicated by technical challenges in manufacturing complex components and growing resistance from employees who are being asked to train the machines intended to replace them. This struggle to scale production occurs at a critical juncture, with chief executive Elon Musk having staked the company’s long-term future on advancements in artificial intelligence and robotics.

Musk has previously characterised the Optimus platform as potentially the largest product ever created during Tesla’s second-quarter 2026 earnings call. However, he has also conceded that developing an autonomous humanoid capable of performing a wide variety of tasks is one of the most difficult engineering problems to solve. Recent reporting by The Information has detailed several complications Tesla is navigating as it attempts to develop general-purpose robots and increase output for mass production. The company’s Fremont factory in California has ceased production of the Model S sedan and Model X SUV as of May 2026. Both line workers and engineers at the facility have been redirected to work on the Optimus programme, marking a decisive pivot in the company’s operational priorities.

The latest iteration of the robot, designated Optimus V3, has presented substantial development and manufacturing obstacles. Reports indicate difficulties in aligning production line equipment to position components with the necessary precision, alongside limitations on how quickly the production line can operate. While Tesla has reportedly increased output to hundreds of units per week, the company is targeting a production rate exceeding 1,000 robots weekly by the end of 2026. This ambition contrasts with the reality that the automotive sector has relied on specialised industrial robots, such as robotic arms, for decades. Tesla and other manufacturers are betting that combining humanoid form factors with advanced AI models will eventually yield general-purpose machines that integrate more seamlessly into human workplaces.

A primary engineering challenge remains the creation of robotic hands capable of delicate manipulation comparable to human dexterity. This complexity has resulted in significant production issues, as human workers must manually assemble the hands and forearms, which contain more than 100 small components including screws. The intensive manual process has led to newly produced robots requiring immediate repairs. Additionally, the touch sensors in the robot’s hands have proven unreliable, prompting Tesla to develop a replaceable glove-like layer of sensors to avoid the need for replacing the entire hand assembly.

The artificial intelligence capabilities of the Optimus are also reportedly insufficient for general-purpose operations. Sources indicate that the robots currently require specific programming to perform tasks in carefully controlled environments. A major hurdle for the robotics industry is acquiring sufficient training data to allow robots to visually learn a wide range of manual tasks. To address this, Tesla has had factory workers in Texas and California wear special suits designed to record their physical movements. However, some employees have expressed dissatisfaction with this role, citing the knowledge that the robots are designed to eventually replace them. In response, Tesla has shifted data collection responsibilities to dedicated teams and established specific training hubs for this purpose.

Tesla’s supply chain remains heavily reliant on Chinese suppliers for various robot components, a dependency that persists despite efforts by the US administration to boost domestic production. In July, the Federal Communications Commission banned new foreign-made robots, including humanoids and robot dogs, as well as robot vacuum cleaners. The company faces stiff competition from automakers in China, Japan, and South Korea, as well as dedicated robotics firms. Toyota plans to invest billions of dollars in upgrading factories with robots, while Hyundai intends to deploy up to 25,000 Atlas humanoid robots developed by its subsidiary Boston Dynamics over the coming years. Agility Robotics, based in Oregon, is among the furthest along in commercial deployment, having placed units in a GXO Logistics warehouse in 2024. Nevertheless, the broader business case for humanoid robots remains unproven, requiring sustained, cost-effective deployments and demonstrations of safe operation alongside humans.