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Tesla is shifting its focus from electric vehicles to artificial intelligence and robotics, with the release of its Tesla Master Plan IV. CEO Elon Musk envisions a world where AI-enabled devices and robots complete both everyday and risky jobs in the pursuit of “sustainable abundance.” Musk has also stated that the Tesla Optimus Robot project will generate approximately 80% of the company’s future value, emphasizing the extent to which it is banking on the future of robotics.
The heart of Tesla’s AI strategy is the Optimus humanoid robot. Musk is counting on this project to create most of the company’s value, even though it is still under development. Currently, the robots can only perform simple assembly line jobs. Tesla intends to manufacture 5,000 units in 2025 and ramp up production to 1 million units annually by 2029.
Optimus 3 prototypes are anticipated by the end of 2025, with mass production commencing in 2026. Prices are projected to be between $20,000 and $30,000, first targeting businesses and later general consumers.
Alongside the robots, Tesla's AI strategy focuses on integrating AI into vehicles and other physical systems. The objective is to automate repetitive work and improve safety. Musk labels the initiative a “technological renaissance,” anticipating that it will relax and speed daily activities, with Tesla becoming a de facto brand name in robotics innovation.
The shift to AI and Tesla robotics is now in focus, as its other vehicle sales are declining. Over the first half of 2025, there was a 13% decline in deliveries worldwide, including a 40% decline in Europe. Tesla's sales decreased by 5.4% in China compared to the previous year.
Tesla’s shares have slid 19% in 2025, currently trading for $329.37, and the company’s market cap is $1.06 trillion. The Tesla humanoid robot has received a lot of criticism, but Elon Musk still believes in the robot and what it can do to change Tesla’s destiny.
The Tesla Master Plan IV represents a significant step forward. The Optimus Robot stands out as a hallmark invention, delivering automation that has the potential to revolutionize the operation of factories and homes.
In contrast to prior plans, Part IV focuses on a distant vision instead of short-term offerings. Although some aspects remain unclear, this plan highlights Tesla’s intent to become a frontrunner in AI and robotics. It once again proves how Tesla is wagering on technology to define its next decade of expansion.
