Elon Musk has just confirmed that Tesla is closer than ever to mass-producing its third-generation humanoid robot – Optimus Gen 3.

The company aims to reach a production volume of 10,000 units by the end of 2025, with an estimated manufacturing cost of around $10,000 per robot.

Optimus is currently being tested inside Tesla factories, performing real-world tasks such as material handling, component assembly, and internal transport.

This marks a major leap in bringing robots from the lab into practical daily use, with the goal of making them versatile tools for various industries and daily human assistance.

However, the production process is facing some challenges, particularly with the supply chain of rare-earth magnets – a critical component in the robot’s actuators.

China, the main supplier of these materials, has imposed new export regulations requiring special licenses for magnets that could be used in military applications.

This has caused delays in accessing the necessary supply.

China also requires Tesla to prove that the magnets used in Optimus will not be weaponized or repurposed for military use.

This is part of a broader effort to tighten control amid rising tensions in global trade and technology.

Despite this, Elon Musk remains optimistic that the licensing hurdles will be resolved and the expansion plans will proceed on schedule.

According to him, Optimus is not just a tech project, but the beginning of a revolution in labor and manufacturing.

He envisions a future where repetitive, dangerous, or tedious tasks are handled by robots, freeing humans for more meaningful and creative work.

Beyond the initial target of 10,000 units, Tesla also plans to scale production up to one million robots annually within five years.

If successful, Optimus could become not only a technological breakthrough but also a major revenue source for Tesla in the future.

With a combination of advanced AI, precision mechanics, and automated quality control systems, Optimus Gen 3 has the potential to completely transform how the world views service and industrial robots.

What Elon Musk is pursuing is not just building a robot – it’s about reshaping the future of labor and global manufacturing.