Tesla Stock Falls About 2% as Optimus Hand Production Bottlenecks Slow Robot Ramp-Up
Key Takeaways
- •Tesla shares fell about 2% to close near $368.81 after new reporting detailed manufacturing challenges in the Optimus humanoid robot program.
- •Optimus output has grown tenfold since the second quarter to several hundred units weekly, but hand assembly precision, supplier constraints, and automated-equipment separate Tesla from its year-end target of 1,000 units per week.
- •The current Optimus V3, trained on more than 500,000 hours of real-world data, remains limited to supervised tasks, and early commercial units will be leased rather than sold, with full sales targeted for late 2027.
- •Tesla has turned to Chinese suppliers, conducting audits in Ningbo and placing Optimus parts orders, while building a dedicated Optimus factory at Gigafactory Texas expected to eventually reach 10 million robots of annual capacity.
- •In July the FCC added foreign-made robotic devices, including humanoid robots, to its banned device list with higher domestic component thresholds through 2029, a move China's Commerce Ministry called damaging to trade stability.
Tesla, Inc. (NASDAQ: TSLA) shares slipped roughly 2% on Thursday after new reporting detailed manufacturing challenges in the company’s Optimus humanoid robot program. The stock closed the session near $368.81, a decline of about $9 on the day.
The Information reported that the robot’s hands have become the biggest bottleneck in Tesla’s push to scale production. Output has grown tenfold since the second quarter, rising from a few dozen units per week to several hundred. Even so, the company is chasing an ambitious goal: 1,000 Optimus units per week by year-end, with a longer-term target of 20,000 weekly units.
Supplier constraints and failures in automated equipment are adding to the strain. According to the report, the hand assembly process alone requires a level of mechanical precision that has proven difficult to replicate at scale — a hurdle separating Tesla’s current output of several hundred units per week from its stated target of 1,000 by year-end.
The reported bottleneck makes hand production, supplier capacity and automated-equipment reliability the immediate operational factors to watch as Tesla works toward that year-end target.
$TSLA RAMPS OPTIMUS PRODUCTION 10X
Tesla has increased Optimus output from a few dozen units per week in Q2 to several 100, with managers targeting 1,000+ per week by year-end. But the scale-up is still running into manufacturing problems, especially with Optimus’ hands, per… pic.twitter.com/UF1ivomGNm
— Wall St Engine (@wallstengine) September 25, 2026
What Optimus V3 Can Actually Do
The current version, built in Fremont, is Optimus V3, which features a lighter frame and better cameras than earlier models. It was trained on more than 500,000 hours of real-world data.
Despite that training, V3 still cannot operate as a fully autonomous, general-purpose machine. Its use remains limited to specific, supervised tasks in Palo Alto test zones and on factory floors.
Because V3 is not the final consumer version, Tesla is taking a cautious approach to the rollout. Early commercial units will be leased rather than sold outright, an arrangement that lets the company pull robots back for mechanical upgrades whenever needed. The lease model also means Tesla keeps collecting factory data to refine the AI over time.
Musk has said full commercial sales could begin by late 2027 — a timeline that depends on solving the hand manufacturing puzzle first.
Tesla Turns to Chinese Suppliers
Tesla is now leaning on Chinese suppliers to help ramp up Optimus production, marking a shift from the company’s recent strategy of cutting Chinese sourcing for U.S.-built vehicles.
Tesla teams visited Ningbo, a port city in Zhejiang province and a manufacturing hub on China’s east coast, to conduct supplier audits. The visit focused on production consistency and exclusivity terms, according to a local report citing supply chain sources. Orders have already been placed with suppliers there for Optimus parts.
Meanwhile, construction continues on Tesla’s dedicated Optimus factory at Gigafactory Texas, a facility expected to eventually reach an annual capacity of 10 million robots. The first large-scale Optimus assembly line, however, will run out of Fremont, taking over the space formerly used for Model S and Model X production.
China remains central to Tesla’s broader operations as well. The company posted record energy storage deployments in Europe, the Middle East and Africa last quarter, supported by output from Megafactory Shanghai. Musk called the Shanghai factory “a gem” in a recent interview, and he has praised China’s manufacturing capabilities as “very strong” and “inherent.”
In an interview with Chinese state broadcaster CCTV, Musk went further, praising President Xi Jinping directly. He said Xi “seems like a great leader” and credited him with driving visible progress across Chinese infrastructure.
The comments come as President Trump prepares to meet Xi this week for a summit. Musk has recently been on friendly terms with Trump and joined him on a business trip to Beijing back in May.
Tensions have not fully eased, however. In July, the FCC added foreign-made robotic devices, including humanoid robots, to its banned device list, requiring higher domestic component thresholds through 2029. China’s Commerce Ministry called the move damaging to trade stability.
