For years, Tesla has been known for electric cars, batteries, solar roofs, and an undeniable culture of relentless innovation. But over the past twelve months, a quieter, more enigmatic project has begun surfacing through scattered statements, leaked internal memos, and job listings: an entirely new factory initiative, one that insiders say will be dedicated not to cars, but to mass-producing humanoid robots at a scale previously unimaginable.

The internal target attached to the project is even more staggering: 10 million robots per year.

If accurate, it would represent the most radical industrial shift in Tesla’s two-decade history—one with profound implications for

This investigative report pieces together everything currently known—and unknown—about what Tesla is building, why the company believes robots will dwarf its automotive business, and whether Musk’s most audacious bet could reshape the world or collapse under impossible expectations.

The Origins: How “Optimus” Went From Tech Demo to Tesla’s Core Priority

In 2021, Elon Musk unveiled the first concept of what would eventually be known as Tesla Optimus, a humanoid robot designed to perform physical tasks in homes and factories. At the time, even many Tesla supporters dismissed the announcement as a distraction.

But internally, senior engineers were assigned full-time to the project, robotics hires accelerated, and Musk began speaking more frequently about a world where robots outnumber humans.

By 2024, Optimus prototypes began appearing in carefully staged demonstration videos—walking, picking up objects, performing yoga-like stretches, and manipulating industrial parts. The videos were meant to communicate progress, but insiders say they only scratched the surface.

Optimus is no longer a side project,” a former Tesla engineer said under condition of anonymity.It’s the center of the long-term plan. Cars will fund the robot factory.”

If the sources are correct, Tesla doesn’t just want to build robots—it wants to dominate human-scale robotics the way it once dominated the EV market.

Evidence of a New Mega-Factory Emerges

high-volume actuators manufacturing”

robotic assembly tooling”

anthropomorphic systems production lines”

large-scale robotics supply chain management”

None of these were connected to existing automotive or battery plants.

At the same time, real estate probes uncovered land acquisition negotiations in several states—including Texas, Nevada, New York, and even international locations like Canada and South Korea.

The common theme?Each site inquiry was formillions of square feet of industrial space, far beyond what would be needed for modest robot production.

By February 2025, three independent industry analysts had concluded that Tesla was planning a new facility—one not for cars, but for robotic manufacturing.

Why Ten Million Robots? Understanding the Scale

The number “10 million” may sound fantastical, but sources say it originates from internal modeling.

According to leaked presentations, Tesla believes that humanoid robots—if priced between $15,000 and $25,000—could become the largest consumer and industrial product category in modern history.

Their economic modeling assumes:

robots performing warehouse labor

robots assisting in elder care

robots replacing dangerous industrial jobs

robots operating in agriculture

robots as household assistants

robots as personal mobility aides

Tesla estimates that >global demand could exceed 500 million units, assuming robots become as common as smartphones or personal vehicles.

To meet even a portion of that, they would need output levels that no robotics manufacturer has ever approached.

Thus, the internal moonshotA dedicated factory capable of producing tens of millions of humanoid robots annually.

The Engineering Challenge: Can Robots Be Mass-Produced Like Cars?

The core question is whether such production is even possible.

Robots require:

advanced actuators

machine vision systems

precision motors

synthetic ligaments

power-efficient computing hardware

safe, compliant movement mechanisms

Each of these subcomponents is orders of magnitude more complex than the equivalent parts of a car.

Tesla wants to solve this with the same philosophy that made its EVs cost-effective:

vertical integration + extreme automation + simplified component architecture.

In recent conference discussions, Musk has repeatedly emphasized Tesla’s actuator design as a milestone, claiming it is:

cheaper

stronger

easier to mass-manufacture

more energy-efficient

than the motors used in existing robotics labs.

If Tesla truly cracked this component challenge, scaling becomes theoretically feasible. But “theoretically” is still a long way from building 10 million units per year.The Business Case: Robots Are More Profitable Than Cars

Tesla’s automotive margins have been shrinking due to competition and price cuts. Meanwhile, robotics could offer:

higher margins

recurring software subscription revenue

paid upgrades

service contracts

app ecosystems

cloud-based AI models

Insiders describe Optimus as “the iPhone of labor,” meaning the robot itself is the hardware, but the real business lies in:

task libraries

AI skills packages

industrial tools add-ons

insurance and safety licensing

Tesla’s internal forecasts imagine each robot generating$2,000–$8,000 in annual software revenue, similar to how smartphones generate revenue through apps.

If accurate, a robot factory could dwarf Tesla’s automotive business within a decade.

The Ethical and Societal Risk: What Happens to Human Jobs?

Producing 10 million robots a year would have dramatic societal consequences.

Labor economists warn that widespread deployment of humanoid robots could displace human workers in:

manufacturing

construction

hospitality

agriculture

home caregiving

transportation

logistics

Tesla claims that robots will enhance human productivity rather than replace workers, but critics are unconvinced.

This isn’t automation—this is replacement at human scale,” one labor advocate told us.You don’t build 10 million humanoid robots a year unless you intend to alter the global labor market.”

Governments around the world are already discussing regulation for general-purpose robotics, anticipating a future where robots work alongside—or instead of—humans.

Competition and the Global Robotics Race

Tesla is not alone in the humanoid robot race.

Major competitors include:

Figure AI (backed by Jeff Bezos and major venture firms)

Agility Robotics (developers of the Digit robot)

Boston Dynamics (the industry’s legacy leader)

OpenAI-affiliated robotics startups

Chinese robotics manufacturers expanding rapidly

But none of these companies have Tesla’s:

manufacturing infrastructure

global supply chains

access to raw materials

vertically integrated design

real-world deployment ecosystems

If Tesla builds a robot gigafactory, it could leapfrog years ahead of competitors.

The Biggest Unknown: Where Will the Factory Be Built?

Tesla has not officially announced the location, but based on leaked county commission documents, the leading candidates appear to be:

Texas

Strong political support

Proximity to Tesla HQ

Largest available industrial land parcels

Existing robotics engineering teams

Nevada

Expansion near Giga Nevada

Existing supply chain familiarity

Potential tax incentives

New York

The former Buffalo Gigafactory (currently under-utilized)

State incentives

Access to East Coast talent

International Sites

South Korea (close to robotics specialists)

Ontario, Canada (excellent manufacturing ecosystem)

Tesla historically plays multiple regions against each other to negotiate the best incentives. The actual location may not be revealed until the last possible moment.

Workforce Requirements: A Factory That Builds Robots—Using Robots

One of the most striking aspects of internal documents is that the robot factory itself is designed to be highly automated, using Tesla robots to help build Tesla robots.

This self-amplifying loop—robots building robots that build more robots—has alarmed some analysts but aligns perfectly with Musk’s automation philosophy.

If successful, Tesla could achieve:

ultra-low labor costs

unprecedented production efficiency

a manufacturing model that scales exponentially

But if it fails, the entire project could collapse under its own complexity.

Is Tesla Over-Promising Again—or Engineering the Future?

Tesla has a mixed track record with bold promises:

Full Self-Driving is still not fully autonomous.

Robotaxis have been “next year” for seven years.

The Cybertruck was delayed repeatedly.

And yet, Tesla did change the global auto industry forever.It did create the world’s largest battery supply chain.It did make EVs mainstream.
So the question becomes:

Is the plan to make 10 million humanoid robots per year a delusion, or the next chapter in Tesla’s uncanny ability to make the impossible real?

Conclusion: The World’s First Robot Megafactory May Already Be in Motion

Whether Tesla succeeds or fails, one truth remains unavoidable:

A factory capable of producing 10 million humanoid robots per year would change everything.

It would transform industries, economies, labor systems, and daily life.It would create new problems—ethical, legal, economic—and new opportunities.It would solidify Tesla as not just a car company, but a robotics and AI superpower.