Tesla Targets 10M Optimus Robots Yearly at Texas Factory

Tesla's Q1 2026 Update Letter confirms first-generation Optimus production lines underway at its Fremont, California factory, with a pilot line targeting one million robots per year.

An aerial image shows a large plot adjacent to Gigafactory Texas labeled for Optimus factory site preparation. Permit documents reveal Tesla seeks over 5.2 million square feet of new building space at Giga Texas North Campus by end of 2026, with a $5 billion to $10 billion investment. The site's long-term goal is 10 million Optimus units annually.

Giga Texas spans 2,500 acres with over 10 million square feet of existing factory floor. The North Campus expansion supports an Optimus factory, Terafab chip facility with SpaceX and xAI, Cybercab test track, roads, and other facilities.

Texas offers a favorable tax structure, lower labor costs than California, and proximity to Cortex 1 and 2 AI clusters totaling over 230,000 H100 equivalent GPUs. Tesla's Q1 report notes AI5 chip tape-out completion in April for Optimus inference. The Texas site targets full-scale Optimus V4 production.

Elon Musk stated at the World Economic Forum in January that Tesla plans public Optimus sales by end of 2027 at $20,000 to $30,000, adding, "I think everyone on earth is going to have one and want one." He estimates global demand exceeds 20 billion units for consumer and industrial uses.