Elon Musk pivots Tesla away from cars, betting company’s future on humanoid robots

Elon Musk is making one of his boldest bets yet — shifting Tesla’s focus away from cars and toward humanoid robots.

During Tesla’s latest earnings call, Musk announced plans to discontinue the Model S and Model X, converting production space at the company’s Fremont factory into an Optimus robot facility. His goal: eventually produce up to one million humanoid robots per year.

Tesla’s electric vehicle sales fell 9% in 2025 amid rising competition from Chinese automakers and the expiration of U.S. EV tax credits. Musk now believes Optimus robots, not cars, will drive Tesla’s long-term growth.

Musk has claimed Optimus could handle everyday tasks like cleaning homes and even performing surgery. He has also suggested the robots could eliminate poverty and make human labor optional, saying they may go on sale by the end of 2027.

Critics argue the vision is overly ambitious. While Tesla says Optimus can already perform basic factory tasks like sorting objects and taking out trash, experts note humanoid robots remain among the most complex machines to build. More than 90 companies worldwide are now developing similar technology, including major players like Hyundai, Google DeepMind, Nvidia, Intel, and Qualcomm.

Industry analysts estimate the humanoid robot market could eventually reach anywhere from $370 billion by 2040 to $5 trillion by 2050. Tesla does have advantages in batteries, motors, and large-scale manufacturing, but robotics specialists say widespread adoption is likely at least a decade away.

Musk’s personal compensation is also tied to Optimus. Tesla must deliver one million robots within 10 years for him to fully realize a shareholder-approved pay package valued near $1 trillion.

Musk has missed aggressive timelines before, including promises about self-driving cars and Mars missions. Tesla has already scaled back internal Optimus production targets, and Musk has acknowledged ongoing hardware challenges, particularly with robotic hands.

Political backlash against Musk has also led to protests and vandalism at Tesla dealerships, raising questions about consumer appetite for high-priced home robots.

Despite skepticism, Musk remains confident.

“Tesla’s obviously never been a company to shy away from solving some of the hardest problems,” he said.

Experts caution that breakthroughs will take time, emphasizing that while Musk’s vision is ambitious, the road to fully functional humanoid robots will be long and uncertain.

Credit: CNN Newsource

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