Tesla is ramping up its production of the humanoid robot, Optimus, with a goal of making one million units each year by 2026. The expansion of the Texas Gigafactory will allow Tesla to produce as many as 10 million units annually starting in 2027. Optimus is built for repetitive tasks, showing Tesla’s new direction in robotics. Early prototypes are currently being made at the Fremont factory, and Tesla aims to keep production costs around $20,000 per robot. Elon Musk sees Optimus as a way to make work easier by taking over dull tasks. The Optimus V3, expected to launch in 2026, is designed to be so lifelike that people may need to check if it’s a robot. Other tech companies are also progressing in robotics. NVIDIA plans to be a leader with innovations expected in 2025, while Advanced Micro Devices is looking into industrial robots with its Kria System-on-Modules. Tesla’s stock has increased by 6% this year, but it currently has a higher forward price-to-sales ratio compared to the industry. Competitors like Boston Dynamics and Figure AI are also developing similar technologies, which could challenge Tesla’s long-term success in robotics. As of November 13, 2025, Tesla’s focus is shifting from just electric vehicles to a broader robotics and AI narrative. The stock’s 6% gain year-to-date is below the auto industry’s 12% growth, reflecting concerns about slowing EV demand. Recent global auto sales data revealed only a 4% year-over-year growth. The Optimus project appears to be Tesla’s strategy to defend its high valuation, which is significantly above its historical average. In the weeks ahead, we should watch for increased implied volatility in Tesla options, especially for contracts that expire after the early 2026 reveal of Optimus V3. Currently, TSLA’s 90-day implied volatility is around 65%, much higher than the S&P 500’s VIX of 14, indicating traders expect a big shift. This sets up opportunities for strategies like call debit spreads to benefit from positive news or selling premium through iron condors if we think the stock will stay stable before the event. The target of one million robots by late 2026 seems very ambitious, especially considering production delays with the Model 3 and Cybertruck in previous years. Any positive updates about the Fremont pilot production line could act as a short-term boost. A potential strategy involves calendar spreads on TSLA options, focusing on longer-dated contracts to capture future potential while selling shorter-dated ones to take advantage of volatility decay. The race in robotics goes beyond Tesla, also affecting the semiconductor industry. NVIDIA’s stock has surged since the AI boom of 2023-2024, with recent earnings driven by strong demand for its Jetson Thor chips. We could capitalize on this trend by considering bull call spreads on NVDA, gaining exposure to the entire robotics sector without the risks tied to a single company like Tesla. We must also recognize the rise in competition. Companies like Figure AI have launched significant pilot programs with global logistics firms, showcasing their commercial advances. This emphasizes that Tesla’s success is not certain, even with its manufacturing strength. Thus, a smart move could be a pairs trade by going long on a basket of robotics enablers like NVDA and AMD while holding a speculative put position on TSLA, hedging against possible delays with Optimus.

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