Elon Musk Forecasts Optimus Version 3 to Achieve Human-Level Dexterity and AI Navigation by Late 2025

Elon Musk, CEO of Tesla, has outlined ambitious projections for the upcoming Optimus version 3 humanoid robot, stating it will possess "the manual dexterity of a human" and an "AI mind that can navigate and comprehend reality." Speaking at the All-In Summit on September 10, 2025, Musk emphasized the robot's potential for high-volume production, a key differentiator from competitors. This announcement comes as Tesla continues to advance its Optimus program, with previous iterations demonstrating increasing capabilities.

"We’re finalizing the design of Optimus version 3. It will have the manual dexterity of a human, an AI mind that can navigate and comprehend reality, and it’ll be made in very high volume," Musk stated. He added, "Other robotics companies are missing those three things — they’re the really hard parts."

Tesla's Optimus project, first announced in 2021, has seen prototypes like Optimus Gen 2 (revealed in late 2023) demonstrate basic motor skills, object manipulation, and autonomous navigation in controlled environments. The company aims for Optimus to perform unsafe, repetitive, or boring tasks, with Musk envisioning millions of units operating in Tesla factories by 2029. The projected cost for Optimus is estimated between $20,000 and $30,000 in the long term, making it potentially more affordable than some current humanoid robot prototypes.

Musk highlighted the significant challenge of establishing a production ecosystem for humanoid robots. "There’s no supply chain for humanoid robots, so we’re recreating it from scratch," he explained. This vertical integration strategy mirrors Tesla's approach in electric vehicle manufacturing, leveraging its expertise in AI, electrical-mechanical engineering, and scaling production.

The development of Optimus version 3, with its advanced dexterity and AI capabilities, is expected to further intensify competition in the burgeoning humanoid robotics market. While companies like Boston Dynamics with its Atlas robot and startups like Figure AI (backed by major tech firms) are making strides, Tesla's focus on mass production and integrated AI stack positions Optimus as a significant contender. Musk has previously indicated that Optimus could be the "biggest product of all time," underscoring its strategic importance to Tesla's future.