Musk: Tesla Will Rent Optimus Robots Instead of Selling Them
CEO says rental model likely for humanoid robots, with initial build costs near $30,000 per unit.
Tesla CEO Elon Musk indicated that the company will likely rent out its Optimus humanoid robots to customers rather than selling them outright. The comments were made during an interview at the 33rd Annual Baron Investment Conference.
What Happened
When asked whether Tesla would rent or sell the Optimus robots, Musk stated, "I think probably rent them." He also provided insight into the manufacturing economics, noting that the initial cost to build each robot would be approximately $30,000, comparable to the cost of a car, but expecting that figure to drop toward $20,000 over time. Musk did not specify the price for renting the robots.
Why It Matters
The potential rental model aligns with Tesla’s broader strategy to generate recurring revenue, a shift already evident in its Full Self-Driving (FSD) software subscription. During its Q3 earnings call, Tesla confirmed that FSD’s annual recurring revenue is approaching $1 billion, with the software purchased by 75% of new orders in North America. By treating Optimus as a subscription service, Tesla could lower the barrier to entry for corporate clients while securing a steady income stream from the hardware. Production of Optimus has begun on a line in Fremont with a planned capacity of 1 million units per year, with deliveries to outside companies expected around the end of 2027.
The Bottom Line
Tesla plans to use Optimus in its own factories before offering it to external customers, with an AI5-powered version expected around April 2027. Further details on pricing and rental terms may be revealed at the upcoming Annual Shareholder Meeting on December 3.
