Tesla's efforts to transform robotics have encountered a significant obstacle. As of mid-June 2025, the company halted all production of its Optimus humanoid robots, citing unresolved technical issues and recent changes in project leadership.
Despite producing nearly 1,000 Optimus units by late May and gathering parts for 1,200 robots, recent setbacks derailed the company's year-end targets. Tesla had promised 5,000 or more robots for 2025, but insiders say output may fall far short.
Technical Bottlenecks Stall Production
Key challenges have emerged, including overheated joint motors, limited battery life, and failures in hand components. Most incomplete Optimus bodies lack working hands or forearms, and the design suffers from low load capacity and reliability.
Even basic tasks, such as moving batteries in Tesla workshops, show that the robot's efficiency is less than half that of a human worker.
Joint transmission lifespans also fell below expectations. Multiple solutions for hand mechanics are being tested, but so far none have proven both robust and dexterous.
Did you know?
During a recent public demo, an Optimus robot failed mid-task at a Tesla diner launch event-even while teleoperated-spotlighting the current operational limitations versus Elon Musk’s ambitious promises.
Production Paused for Redesign
The halt prompted Tesla to launch a sweeping two-month redesign of both hardware and software. The company halted orders from Chinese suppliers and shifted its focus to incorporating more synthetic data into AI training, aiming to improve Optimus’s task success rate and autonomous decision-making.
A high-profile robot freeze-up during a public event in Los Angeles, where an Optimus failed mid-demonstration while serving popcorn, highlighted the technology’s major unresolved issues.
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Leadership Turnover Complicates Recovery
Project turmoil deepened with the June 2025 departure of Milan Kovac, who’d led the Optimus program since 2016. Kovac’s exit is part of a wave of senior departures across Tesla’s operations this year. Ashok Elluswamy, renowned for his work on Tesla’s Full Self-Driving software, now leads the program.
Adding further uncertainty, Tesla is embroiled in a trade secrets lawsuit over former employees reportedly taking know-how in robotic hands to a startup competitor.
Financial and Strategic Pressures Rise
These setbacks arrive amid Tesla’s most daunting financial period in over a decade. The second quarter saw revenues dip 12%, automotive sales drop 16%, and share prices tumble 9% after Musk’s candid warning of "rough quarters" ahead.
The company’s flagship robotics and AI programs are now under sharper scrutiny as core car sales shrink and federal incentives wane.
Elon Musk has scaled down projections, describing previous high-volume robot targets as "aspirational" rather than certain. Production of the redesigned Optimus 3 version is now penciled for early 2026 at the soonest.
The Road Ahead: Uncertain Recovery
Tesla’s ability to resolve fundamental mechanical and strategic hurdles over the coming months will shape its place in the future of robotics.
For now, the dream of mass-market humanoid robots remains just that: a work in progress, awaiting its next real breakthrough.
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