Tesla chief executive Elon Musk announced that the company is on track to begin shipping its Optimus humanoid robots to external customers by the end of 2027. He made the remarks during Tesla’s third-quarter earnings call on Wednesday, where he also highlighted the growing revenue potential of the company’s autonomous Robotaxi fleet.
Musk told investors that usage of the Robotaxi service is increasing rapidly and is expected to become a major revenue contributor. This development coincides with rising demand for Tesla’s vehicles, driven in part by the Full Self-Driving (FSD) system, an automated driving assistance feature that Musk characterized as a key selling point. According to Tesla, a record 75 percent of vehicle deliveries in the quarter included FSD subscriptions, with total paid subscriptions reaching 1.7 million, up from 1 million a year earlier.
Despite speculation following SpaceX’s earnings call on Tuesday, Musk ruled out any imminent merger between Tesla and SpaceX. When pressed on the issue during Tesla’s call, executives declined to comment further, with Musk noting that he had “said everything that should be said yesterday,” referring to SpaceX’s announcement of special committees to study a potential merger. Tesla shares declined 3.5 percent in after-hours trading following the earnings release.
Tesla reported flat third-quarter revenue of $28 billion but posted positive free cash flow, surprising analysts given the company’s substantial investments in artificial intelligence and robotics. Adjusted net income edged down 4 percent to $1.7 billion. While core automotive and energy storage segments saw revenue decrease by 3 percent and 16 percent respectively, Tesla’s “services and other” category—which includes FSD subscriptions, the Robotaxi business, and electric vehicle charging—grew by 33 percent.
Capital expenditures declined to $4.7 billion for the quarter, down from $5.8 billion the previous quarter but still more than double the amount spent a year ago. Tesla revised its full-year capital spending forecast to approximately $20 billion, lower than the prior estimate of $25 billion, though Musk emphasized that the company would require “tens of billions” in annual capital investment by 2028.
Musk also provided updates on the Cybercab, Tesla’s two-seat autonomous vehicle expected to begin deliveries to private and commercial customers by year-end. He said most units will remain Tesla-owned and operate as part of the company’s autonomous fleet. The Cybercab is targeted to be priced under $30,000.
Tesla sold 486,532 vehicles worldwide during the quarter, a 2 percent decline compared with the same period last year. Most sales were driven by the Model Y SUV and Model 3 sedan, following the discontinuation of the Model S and Model X and limited demand for the Cybertruck. Musk reiterated Tesla’s goal to more than double vehicle output to 5 million units annually by 2030, focusing on expanding FSD approval into new markets such as Europe.
Regarding the Optimus robot, Musk said early production is underway at Tesla’s Fremont, California factory, but significant development remains before commercial rollout. He explained that the robot requires extensive AI training to be effective for general tasks, with the highest value applications anticipated to be in heavy industry and hazardous work environments, where repetitive or dangerous tasks can be performed safely and continuously.