Tesla Hits Pause on Optimus Robot Production After Leadership Turmoil

Elon's humanoid dream hits a speed bump.

Just as Optimus units were meant to start rolling off production lines, Tesla slams the brakes—citing 'strategic realignment' following abrupt executive departures. The timing couldn't be worse with Boston Dynamics already demoing its next-gen Atlas.

Wall Street shrugs: 'Another distraction from core profitability issues,' says one analyst while short-sellers circle. The real question? Whether this delay makes Tesla's $25K robot promise look more like vaporware.

Meanwhile, engineers whisper about fundamental actuator problems. But hey—at least the Boring Company's flamethrowers still work.

TLDRs;

• Tesla has paused Optimus robot production following a leadership change and ongoing design revisions.
• The new head of the project, Ashok Elluswamy, aims to fix performance and hardware flaws before resuming output.
• The original 2025 production target of 5,000 units is now unlikely to be met.
• Tesla may reveal a redesigned Optimus at its next shareholder meeting to reassure investors.

Tesla has reportedly halted production of its Optimus humanoid robot as internal leadership changes and unresolved design challenges force a reset in the company’s robotics roadmap.

According to multiple sources within Tesla’s Chinese supply chain, the electric carmaker suspended procurement of robot components in mid-June, coinciding with a major shift in project leadership.

Leadership Exit Sparks Delay

The decision comes just weeks after Milan Kovac, the original head of the Optimus project, exited Tesla. His responsibilities have now been handed over to Ashok Elluswamy, the company’s longtime AI software vice president, who is now tasked with steering Optimus through a significant hardware and software overhaul. Elluswamy, best known for leading Tesla’s Full Self-Driving initiative, is reportedly focused on improving design functionality before mass production can resume.

Tesla CEO Elon Musk had previously set ambitious targets for the humanoid robot, aiming to build 5,000 units this year alone. By late May, the company had manufactured nearly 1,000 robots and acquired enough components for 1,200. With parts procurement now paused, industry insiders believe that target is no longer realistic.

One supplier involved in the project confirmed that Tesla has not officially canceled orders but indicated that no further parts will be procured until design revisions are completed, a process that could take up to two months. Musk, who continues to tout Optimus as a central pillar of Tesla’s long-term strategy, recently shared that the robot’s latest version now includes voice interaction powered by Grok, an AI system developed under xAI.

Hardware Issues Persist

The pause in production comes as Tesla faces mounting internal and external pressures. Over the past six months, at least five senior executives have left the company, including Omid Afshar, who oversaw Tesla’s North American and European manufacturing operations. His departure at the end of June followed a broader executive shake-up that has left Musk and Tom Zhu as the last two senior vice presidents on the Core leadership team.

Alongside corporate turbulence, Optimus still faces unresolved engineering challenges. According to Tesla’s feedback to suppliers, the robot’s joints are prone to overheating, the dexterous hand mechanisms suffer from low durability, and its battery life remains inadequate for extended tasks. The robot is currently being tested in Tesla’s battery workshops, where its efficiency is reportedly less than half that of human workers.

Shareholder Pressure Mounts

Despite these limitations, Musk’s vision for Optimus remains ambitious. He envisions 50,000 units being built next year, with long-term goals including deployment on Mars and eventual production exceeding half a million units annually by 2029. These projections, while optimistic, have yet to be supported by any publicized production breakthroughs or widespread deployment in Tesla’s factories.

Tesla has invested heavily in the Optimus program over the past three years, partnering with hundreds of suppliers and assembling an R&D team of more than 400 people. The company had earmarked over $300 million for parts alone in 2025, based on a unit cost of approximately $60,000.