Optimus Just Entered Production at Fremont. Here's What Changes for Tesla Investors.
It's a landmark moment for the company, but the underlying improvements might not be fully visible for a while.
Overview
Tesla (NASDAQ: TSLA) has stated that 80% of the company's value will come from its Optimus robot in the future. That's a pretty impressive claim when you consider the profit potential in recurring revenue from Tesla's robotaxis (something Musk undoubtedly believes in). It's also something investors should consider when assessing the importance of initial Optimus production to the stock's long-term case.
That Optimus is now in production at Fremont, California (using production space previously used for Model X and Model S electric vehicles), is a landmark development. Still, it's not a pivotal moment for the company. As Musk has made abundantly clear, initial production is only the start of a lengthy and challenging process of scaling production in preparation for commercialization.
Details
Speaking on the recent earnings call, Musk said Optimus "will be the biggest product ever" and that "the production scaling challenge is very substantial. This is going to be the hardest product to scale manufacturing that we've ever made at Tesla."
Source
Originally published at www.fool.com.