During Tesla’s (TSLA) Q2 2025 earnings call, CEO Elon Musk doubled down on the company’s ambitious bet on robotics, describing the latest advancements in the Optimus humanoid robot project. Musk declared the upcoming "Optimus 3" version to be a masterpiece of engineering — and reaffirmed his long-standing claim that it will ultimately be Tesla’s most significant product, even surpassing its electric vehicle lineup.
Optimus 3: From Concept to “Exquisite” Design
Tesla’s robotics initiative has reached what Musk calls version 2.5, with a dramatic leap forward expected in Optimus version 3. Describing it in glowing terms, Musk said, “Optimus, we are evolving the Optimus design and getting it to the point where it is a phenomenal design. We are on Optimus version two right now, sort of two and a half. Optimus three is an exquisite design in my opinion.”
Unlike cars or consumer electronics, Optimus requires Tesla to engineer every component from scratch, beginning with the physics behind each moving part: “It’s a very hard problem to solve. You have to design every part of it from physics first principles. There’s nothing off the shelf that actually works.”
Tesla’s philosophy of vertical integration is being stretched to its limits here, as the company attempts to build a humanoid robot capable of navigating the real world with grace, adaptability, and autonomy.
Transferring Real-World AI from Vehicles to Robots
A cornerstone of Optimus’s development is Tesla’s application of its self-driving neural networks to humanoid robotics. Musk drew a direct comparison between Tesla’s vehicles and Optimus, noting, “We have to train Optimus to use its sensors with a neural net. We will be applying the same techniques we apply for a car, which is essentially a four-wheeled robot. Optimus is a robot with arms and legs.”
By leveraging its Full Self-Driving (FSD) infrastructure, Tesla aims to short-circuit the traditional development timeline for robotic perception, movement, and decision-making. According to Musk, the core AI inference models are transferable between its car platforms and Optimus: “The same principles that apply to optimizing AI inference of the car apply to Optimus because they are both robots in different forms.”
The Stakes: Optimus as Tesla’s Future Cornerstone
For Musk, Optimus represents a paradigm shift that could eclipse even the revolutionary impact of Tesla’s electric vehicles. While few details were shared about specific use cases, prior demonstrations have shown Optimus performing basic tasks like sorting objects, folding laundry, and walking unassisted.
Musk has previously said Optimus could one day function in factories, homes, and commercial spaces, eventually spawning a multi-trillion-dollar market for general-purpose robotics: “As I have said many times before, it will be the biggest product ever.”
Betting Big on the Robotic Frontier
Tesla’s commitment to Optimus signals its ambition to redefine robotics with the same intensity it brought to the EV market. By applying its expertise in real-world AI, Musk believes Tesla is uniquely positioned to deliver a humanoid robot that can think, see, and act autonomously in complex environments.
If Tesla succeeds, Optimus could usher in an era where intelligent machines are not just tools, but collaborative partners in everyday life. With version 3 on the horizon, the world will soon get a clearer view of whether Musk’s boldest bet yet can live up to its promise.
On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
