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Tesla Halts Optimus Robot Manufacturing as Technical Hurdles Mount

Tesla has suspended large-scale manufacturing of its humanoid robot, marking a significant setback for one of the company's most anticipated ventures. The electric vehicle manufacturer initially projected building 5,000 units by the end of 2025 but has now revised expectations to 2,000 units following persistent technical obstacles. The suspension centers on complex engineering challenges affecting the robot's most intricate components, particularly the hands and forearms that require human-level precision.

The current version 2.5 of the robot faces fundamental design limitations that prevent immediate scaling. Manufacturing ambitions that seemed achievable just months ago now appear uncertain as engineers work to resolve mechanical complications. This development represents a rare acknowledgment from the automaker that certain technological barriers require extended timelines to overcome.

Engineering Complexity Behind the Delay

The hand mechanism represents the most technically demanding aspect of the entire robot architecture. Achieving the dexterity necessary for industrial applications has proven more challenging than anticipated, requiring comprehensive redesigns of both the hand structure and forearm components. These components must perform delicate tasks while maintaining durability under repetitive factory conditions.

Joint motors have exhibited overheating tendencies during extended operation cycles. Battery capacity remains insufficient for full shift operations, limiting practical deployment scenarios. Gearbox and transmission components show accelerated wear patterns that compromise long-term reliability. These technical realities have forced a fundamental reassessment of the manufacturing timeline.

Current prototypes operate at roughly half the efficiency of human workers when tested in battery sorting applications. Training the robots for new tasks requires specialized video content creation, a time-intensive process that limits rapid skill acquisition. The company hopes future iterations will learn from publicly available video content, though that capability remains under development.

Leadership Changes Compound Production Challenges

The departure of Milan Kovac, who previously led the robotics engineering division, created a leadership vacuum in June. Responsibilities have been redistributed among remaining executives, with hardware design now overseen by Konstantin Laskaris and software development managed by Ashok Elluswamy. This reorganization coincided with the suspension of component procurement from the Chinese supply chain.

The leadership transition occurred at a critical juncture when the project required decisive technical direction. Approximately 1,000 units had been manufactured before the pause, with components secured for an additional 200 robots. Suppliers report that orders have not been formally canceled but procurement remains frozen pending design revisions that may extend for two months.

Public Demonstrations Contrast With Internal Realities

Recent public appearances showcase the robot's entertainment capabilities, including choreographed movements demonstrated during celebrity events. A prototype performed martial arts sequences with actor Jared Leto at a film premiere, highlighting the platform's motion capabilities. These demonstrations emphasize the visual and interactive potential of the technology while development teams address fundamental operational challenges.

Factory deployments remain limited to simple tasks like battery sorting and facility inspections. The robots currently operate in controlled environments at Tesla facilities and the Palo Alto office, where supervised testing continues around the clock. Real-world industrial applications requiring sustained autonomous operation remain in experimental phases.

Timeline Adjustments and Future Projections

Company leadership maintains that full-scale manufacturing will commence in early 2026, with prototype versions of the third generation expected by late 2025. Long-term targets include annual production reaching one million units within five years, though these projections depend on resolving current technical obstacles. The humanoid robot initiative remains positioned as potentially the largest product category in company history.

Analysts note the gap between aspirational timelines and engineering realities that typically characterize complex robotics projects. The transition from prototype to mass manufacturing involves solving challenges that emerge only through extensive testing and iteration. Component suppliers and manufacturing partners await clarity on revised specifications before resuming full-scale production support.

Internal discussions reflect growing skepticism about the viability of humanoid robots for factory automation given the technical complexity involved. The effort required to achieve human-equivalent performance in industrial settings may exceed initial assumptions about development timelines. Alternative automation solutions already deployed in manufacturing environments continue to provide proven efficiency gains while the humanoid platform matures.

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