Tesla is preparing the facility for its Optimus production line in Texas. Gigafactory in the background. | Credit: Tesla
Bolstered by $3.9 billion in operating cash flow and a 21% GAAP gross margin, Tesla signaled a shift toward a robotics-first future during its Q1 2026 earnings call on Wednesday. The company announced it will begin production of its Optimus humanoid robot at the Fremont facility in Q2. This move involves phasing out the legacy Model S and Model X production lines to make room for a first-generation robotics plant capable of manufacturing one million units annually.
This manufacturing pivot is supported by an aggressive expansion 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 is already breaking ground on a second-generation facility at Giga Texas. Here, the company is targeting a long-term production capacity of 10 million robots per year.
In Fremont, California, Tesla plans to start preparations for the first large-scale Optimus humanoid factory in Q2 2026. The company designed this first-generation line for a capacity of one million robots per year and will replace the existing Model S and Model X production lines.
At the Gigafactory in Texas, Tesla is designing a second-generation line with a long-term target annual production capacity of 10 million robots. Site preparation for this facility is already underway.
Tesla is currently installing first-generation production lines in anticipation of volume production. The company noted that they are making progress “ahead of mass production”.
To support the scale of Optimus, Tesla is expanding its manufacturing to include semiconductor fabrication. This includes the development of the Tesla AI5 inference processor, designed to handle the compute demands of its robotaxi and Optimus programs.
Alongside physical manufacturing, Tesla is working on “Digital Optimus,” an intelligence layer designed to automate digital workloads and complement the real-world AI used 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 the topic of Tesla’s Roadmap for Scaling AMRs in Legacy U.S. Factories, at the 2026 Robotics Summit and Expo, on May 28th, in Boston, Mass.
Registration is now open for the Robotics Summit & Expo, the world’s leading technical event for commercial robotics developers. The event is produced by The Robot Report and WTWH Media.
The show will have more than 50 sessions in tracks on artificial intelligence, design and development, enabling technologies, healthcare, and logistics. The Engineering Theater on the show floor will also feature presentations by industry experts.
More than 70 speakers are confirmed from companies such as AWS, Brain Corp, Fictiv, Harmonic Drive, maxon, RealSense, the Robotics and AI Institute, Robust AI, Tesla, the Toyota Research Institute, and more.
The 2026 Robotics Summit will also feature a number of networking opportunities. They include a Mix & Mingle Networking Reception after the first day of the show, 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.
The post From EVs to robotics: Tesla targets 10M Optimus units with new Texas plant appeared first on The Robot Report.
