Tesla's Texas plant to produce 10 million Optimus robots in major expansion.

Tesla is gearing up its Texas facility for the Optimus production line, with the Gigafactory visible in the background. | Credit: Tesla

Boosted by $3.9 billion in operating cash flow and a 21% GAAP gross margin, Tesla indicated a strategic pivot toward robotics during its Q1 2026 earnings call. The company announced plans to commence production of its Optimus humanoid robot at the Fremont facility in the second quarter. This initiative involves phasing out the legacy Model S and Model X production lines to accommodate a first-generation robotics plant with an annual capacity of one million units.

This manufacturing shift is backed by a major push into vertical integration, including the development of the AI5 inference processor and a new "Digital Optimus" intelligence layer. While Fremont prepares for its Q2 launch, Tesla has already begun site work for a second-generation facility at Giga Texas, with a long-term goal of producing up to 10 million robots per year.

In Fremont, California, Tesla is set to begin preparations in Q2 2026 for its first large-scale Optimus humanoid factory. This first-generation line, designed for an output of one million robots annually, will replace the existing Model S and Model X production lines.

At the Gigafactory in Texas, Tesla is engineering a second-generation production line targeting a long-term annual capacity of 10 million robots. Groundwork for this facility is currently in progress.

Tesla is now installing the first-generation production lines in advance of volume manufacturing. The company reported that progress is "ahead of mass production."

To support the Optimus scale, Tesla is expanding its manufacturing footprint to include semiconductor fabrication. This encompasses the development of the Tesla AI5 inference processor, engineered to meet the computational needs of its robotaxi and Optimus programs.

In parallel with physical manufacturing, Tesla is developing "Digital Optimus," an intelligence layer intended to automate digital tasks and complement the real-world AI utilized by the physical robots.

About the 2026 Robotics Summit & Expo

Don't miss Joshua Joseph, Tesla AMR Deployment Engineer, when he presents a session on Tesla's Roadmap for Scaling AMRs in Legacy U.S. Factories at the 2026 Robotics Summit and Expo on May 28th in Boston, Massachusetts.

Registration is now open for the Robotics Summit & Expo, the premier global technical event for commercial robotics developers. The event is produced by The Robot Report and WTWH Media.

The show will feature over 50 sessions across tracks on artificial intelligence, design and development, enabling technologies, healthcare, and logistics. The Engineering Theater on the show floor will also host presentations by industry experts.

More than 70 speakers from leading companies such as AWS, Brain Corp, Fictiv, Harmonic Drive, maxon, RealSense, the Robotics and AI Institute, Robust AI, Tesla, and the Toyota Research Institute are confirmed to attend.

The 2026 Robotics Summit will also offer numerous networking opportunities, including a Mix & Mingle Networking Reception after the first day, the Women in Robotics Breakfast, and the ticketed RBR50 Awards Dinner.

The Robotics Summit & Expo is co-located with DeviceTalks Boston, which focuses on medical devices.