Tesla's early production of Optimus humanoid robots began in Fremont during Q3 2026, marking a shift from prototypes to initial manufacturing on converted lines designed for high-volume output. Elon Musk highlighted ongoing challenges with hands, durability, and artificial intelligence during the latest earnings call, pushing external customer deliveries to late 2027 while prioritizing an internal "Optimus Academy" of 10,000–20,000 units for self-training data. Integration of next-generation AI5 chips is slated for April, supporting improved capabilities in a competitive humanoid robotics landscape that includes rivals like Figure AI and Boston Dynamics. Traders are monitoring upcoming marketing videos and production ramp milestones, as these will shape market-implied odds around release timelines amid typical hardware delays in robotics development.