Tesla's robotics team landed in Ningbo on September 16 and began auditing component suppliers for Optimus on September 17, moving three manufacturers — Tuopu Group, Joyson Electronics, and Zhejiang Sanhua Intelligent Controls — from provisional status to certified mass-production partners1,15. The audits extended beyond Ningbo to Hangzhou, Shanghai, and other Yangtze River Delta locations, covering companies that mainly supply joint modules, actuators, and precision structural parts10,14.
The audit came with fresh orders that supply-chain reports put at an initial batch of roughly 5,000 units2. All three certified suppliers already provide parts for Tesla's electric vehicles. Tesla has set a production target of approximately 50,000 Optimus units in 2026 for deployment across its global gigafactories13.
Manufacturing migration and capacity buildout
The audits focused on verifying exclusivity and consistency for mass production, assisting supply-chain partners with equipment debugging, and migrating manufacturing capabilities from U.S. factories to Chinese suppliers. Tesla's audit priorities have shifted from technical validation to production-cost assessment, with the team examining per-unit costs to align with a $20,000 target retail price. The third-generation Optimus carries a per-unit target cost of $20,000 to $30,000.
On the U.S. side, Tesla wound down Model S and Model X production at Fremont in May to convert that floor space into a dedicated Optimus line targeting one million units annually. Tesla is also building a second, larger Optimus plant at Gigafactory Texas with a long-term designed annual capacity of 10 million units, though volume output there is not expected before 2027. Tesla issued capacity guidance to suppliers requiring production to reach 1,000 units per week by September and 2,000 to 2,500 units per week by year-end.
Supplier responses and market reaction
Tuopu Group told Yicai it had not received notification about a facility inspection by Tesla but confirmed it has collaborated with Tesla on linear and rotary actuators as well as dexterous hand actuators, adding that its production base for these components is ready7. Zhejiang Sanhua Intelligent Controls said it was not aware of the new round of inspections but confirmed it is developing robot joint actuators with a major client. Joyson Electronics declined to comment, citing client confidentiality.
The news initially sparked strong activity in China's A-share Tesla supply-chain stocks: Joyson Electronics hit the daily limit up, while Tuopu Group and Zhejiang Sanhua Intelligent Controls rose 4.36% and 2.70%, respectively. Shares later retreated after the supplier denials; Tuopu closed up 2.8% at CNY45 per share, and Zhejiang Sanhua Intelligent Controls finished 1.9% higher at CNY35.31. The Solactive China Humanoid Robotics Index rose about 1.4% on the news but remains down roughly 30% for the year.
Separately, 3D design assets labeled "gen3" were discovered inside the Android version of Tesla's mobile app on September 23, offering what appears to be the first look at Optimus Gen-33,4,5. The renders show enclosed joints replacing exposed actuators, a more unified torso shell, thicker forearms with slimmer wrists consistent with a tendon-driven finger arrangement, and matte black fairings replacing the gold finishes of Gen 2.5. Tesla has not confirmed whether the images correspond to the final hardware design.
Morgan Stanley calculated that excluding Chinese components would raise Optimus Gen2 material costs from approximately $46,000 to approximately $131,000.
ANALYSIS That cost differential underscores the economic logic behind Tesla's decision to certify and expand its Chinese supplier base rather than pursue a fully domestic supply chain for Optimus.
Commercial sales of Optimus are still targeted for the second half of 2027.