Tesla starts Optimus robot production as profit drops 43%

Tesla began production of its Optimus humanoid robots, but reported a 43% drop in net income to $787 million for the third quarter, with revenue flat year-over-year. The company is manufacturing the robots in a former electric vehicle facility, calling them its first production-quality bots. CEO Elon Musk warned the ramp will be gradual and "bumpy," targeting 20,000 units weekly by end of 2027. Operating expenses rose to $4.78 billion, while vehicle deliveries fell 2% to 486,532. Tesla cut its 2026 capital spending forecast to $20 billion from $25 billion. Services revenue grew 33% to $4.6 billion, but solar and energy storage revenue dropped 16% to $2.8 billion. Shares fell over 3% in after-hours trading.