Tesla’s China President Reportedly Says Gigafactory Shanghai Holds ‘Golden Key’ To Optimus Mass Production Push

• Optimus is slated to enter production before the end of 2026. 
• Musk in January also said that the company would stop production of its Model S and Model X vehicles at California in the second quarter and use the production lines for Optimus production. 
• Tesla, however, is yet to hold a public unveiling of the Gen 3 version of Optimus.

Tesla Inc.’s (TSLA) gigafactory in China reportedly has the potential to build the company’s humanoid robot, Optimus, slated to enter production this year.

The company’s China president, Allan Wang Hao, told South China Morning Post on Tuesday that the gigafactory could provide a “golden key” to the mass production of the robots.

“Like other Tesla factories, Giga Shanghai can shoulder important responsibilities in manufacturing all new products, including robots, to make our contributions to the company,” Wang Hao reportedly said. “We are highly confident in welcoming the arrival of a new era of robots.”

The executive, however, did not clarify whether Tesla would assemble the robots at the company’s existing facilities or build a new plant for the purpose, the report said.

TSLA stock rallied 4% at the time of writing, on track for its best day yet in April if gains hold.

Optimus Development Thus Far

Tesla said in January that the company would unveil the Optimus version meant for mass production, nicknamed Gen 3, in the first quarter. Start of production is planned before the end of 2026 with eventual planned capacity expected to be one million robots per year, the company then said.

Musk in January also said that the company would stop production of its Model S and Model X vehicles at California in the second quarter and use the production lines for Optimus production instead.

However, as of the time of writing, Tesla is yet to hold a public unveiling of the Gen 3 version of Optimus. As of March-end, Musk shared that the design needs “some finishing touches” before it's ready to be showcased. However, he added that the version of Optimus is currently walking around the company’s factory.

Giga Shanghai

Tesla’s Shanghai gigafactory, which commenced production in the second half of 2019, currently manufactures the company’s mass market offerings Model 3 and Model Y. The company also has another factory dedicated to the production of its Megapack energy storage product in the Asian country.

Last month, Musk reaffirmed his faith in China’s artificial intelligence capabilities, opining in a post on X that China would lead the AI race on Earth, while his rocket manufacturing and AI company SpaceX would lead it in space.

How Did Retail Traders React?

On Stocktwits, retail sentiment around TSLA stock jumped from ‘neutral’ to ‘bullish’ territory over the past 24 hours, while message volume remained at ‘high’ levels.

TSLA stock has gained 45% over the past 12 months. 

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