Tesla Starts Optimus Production as Q3 Net Income Drops 43%

Tesla has started making Optimus humanoid robots on production lines in Fremont, California, which it describes as high-volume. The manufacturing milestone came as net income attributable to common stockholders fell 43% year over year in the quarter ended Sept. 30.

Tesla called the first robots production-quality and characterized the manufacturing process as suitable for a commercial product. Its update listed the California operation as “Early Ramp” and the Texas operation as “Construction.” It did not give a Fremont production count, an installed annual capacity figure or a customer-sales date.

Net income attributable to common stockholders was $787 million, down from $1.373 billion a year earlier. Revenue totaled $28.046 billion, compared with $28.095 billion in the third quarter of 2025.

Operating expenses increased 39% to $4.776 billion from $3.430 billion. Research and development spending climbed 69% to $2.761 billion from $1.630 billion. Among factors affecting operating income, Tesla listed Super Intelligence and other research and development projects, stock-based compensation, and selling, general and administrative costs.

Total automotive revenue, which includes more than vehicle sales, fell 3% to $20.560 billion from $21.205 billion. Deliveries declined 2% to 486,532 vehicles from 497,099 a year earlier. Energy generation and storage revenue fell 16% to $2.881 billion, while services and other revenue rose 33% to $4.605 billion.