Tesla's Profit Drops 43% as Musk Starts Building Robots and Plans to Sell Driverless Cabs
Tesla's third-quarter net income fell 43% to $787 million on flat revenue of $28.05 billion, as the company increased spending on humanoid robots and driverless taxis.
Tesla's third-quarter financial results reveal a challenging period as the company's net income plummeted 43% to $787 million, compared to $1.37 billion in the same period last year. Despite revenue remaining flat at $28.05 billion, operating profit fell 56% to $718 million, reflecting the company's strategic shift toward new ventures.
The decline coincides with Tesla's aggressive investment in future technologies. Research spending surged 69% to $2.76 billion, while capital expenditures more than doubled to $4.73 billion. These funds are being directed toward two ambitious projects: the Optimus humanoid robot and the Cybercab robotaxi service.
Optimus Production Begins
Tesla has commenced production of its Optimus humanoid robots at its Fremont, California factory. The company claims these are the first "production-quality bots" manufactured to date. Elon Musk has set an ambitious target of producing 20,000 Optimus units per week, though he acknowledges this goal will take at least a year to achieve.
The bots coming off this line are the first production-quality bots that we have manufactured.
Musk estimates that deliveries to external customers won't begin until around the end of 2027. He identified the robot's hand as the most challenging hardware problem, along with ensuring durability beyond a month of use. Tesla has previously missed production targets for Optimus, including a goal of approximately 10,000 robots in 2025.
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