Tesla Halts Optimus Robot Production Amid Leadership Overhaul and Design Revisions

Tesla has suspended production of its Optimus humanoid robot following a leadership shakeup and unresolved design challenges. The pause coincides with the departure of Milan Kovac, the project's original head, and the appointment of Ashok Elluswamy, Tesla's AI software vice president, to oversee a comprehensive hardware and software overhaul.

Elluswamy, known for his work on Tesla's Full Self-Driving initiative, is prioritizing performance improvements before resuming mass production. The company had initially targeted 5,000 units by 2025, but this goal now appears unlikely. A redesigned Optimus prototype may debut at Tesla's next shareholder meeting to address investor concerns.

Supply chain sources indicate component procurement was halted in mid-June, signaling a broader reset of Tesla's robotics strategy. Elon Musk's ambitious timeline for the Optimus project faces significant delays as the team addresses functional flaws in the current design.