Lazaro added that a new product line will require a new supply chain, which could attract all sorts of new suppliers to the region. Tesla is also leasing additional space near its existing factory to support the company’s work in AI, engineering, and, of course, robotics.
Fremont Mayor Raj Salwan said city officials are “delighted” by Musk’s announcement.
“Tesla’s Fremont facility evolving into robotics manufacturing is a vote of confidence in our workforce, supplier ecosystem, and advanced manufacturing base,” Salwan wrote to KQED.
Tesla said it plans to unveil the third generation of Optimus later this quarter, calling it the company’s first design intended for mass production, intended to be used for factory work, household tasks and caregiving. Musk said on the conference call with investors and analysts that he expects artificial intelligence to usher in an era of “sustainable abundance” in which robots do all the work and “everyone can have whatever they want.”
He’s also said he imagines one for every person on Earth, all of them running Tesla software. But that may have more to do with his desire to justify his outsize Tesla pay package, involving up to $1 trillion worth of Tesla stock, than his penchant for predicting the future.
Musk’s personal move to Texas in 2020, his decision to move SpaceX and Tesla headquarters to Austin in 2021, his takeover of Twitter in 2022, his support for the Trump administration and leadership of DOGE in 2025 have alienated many Californians. His promotion of Tesla’s controversial “self-driving” technology, despite documented accidents and safety concerns, has led to criticism and lawsuits.” The same is true for his cavalier approach to complaints about xAI.
Additionally, it’s not clear how many people on Earth will feel a driving need to purchase a robot.
It’s no matter to Stephen Baiter, executive director of the East Bay Economic Development Alliance.
“They really are leveraging all the plentiful assets, resources, the talent and everything else that makes the Bay Area such a unique and global powerhouse,” he said. “I think their capacity to fulfill their bigger ambitions over time is realistic. What time horizon, I guess, remains to be seen.”
