Tesla's humanoid robot Optimus has entered initial production at its Fremont facility, but achieving volume delivery remains challenging. CEO Elon Musk identified the robotic hands as the most difficult hardware component, citing unresolved issues with specialized gears, finger durability, tactile sensor protection, and fine grasping capabilities. Additionally, onboard AI and software systems are not yet mature enough to reliably execute open-ended, non-preprogrammed tasks. To address the AI limitations, Tesla plans to integrate the AI5 chip into Optimus around April 2027, offering approximately ten times the compute power of the current AI4 chip. The company intends to demonstrate relevant task capabilities within the next one to two months. On the production front, Tesla aims to build roughly 10,000 to 20,000 robots for internal practice and training. Reaching an annualized production rate of 20,000 units per week is expected to take at least another year or longer. External customer deliveries are targeted for late 2027, contingent on resolving hand reliability, AI generalization, and production line ramp-up challenges.