Tesla sees profit tumble 43% as Optimus robot production scales up in California

Tesla reported that profit fell sharply by 43% in the most recent quarter, even though revenue stayed roughly flat, while operating expenses jumped as the firm ramped up work on the Optimus humanoid robot, AI initiatives and self‑driving technology.

The earnings statement indicated revenue was unchanged from the year‑ago quarter, mirroring a dip in vehicle sales and service earnings. Concurrently, costs rose markedly, fueled by increased outlays for robotics, AI research and the polishing of autonomous‑driving software.

One major driver of the higher expenses is the commencement of full‑scale production of the Optimus robot at Tesla’s brand‑new California plant. The factory, revealed earlier this year, aims to shift the robot from prototype to commercial volume, a step Tesla claims could eventually augment its production labor force and open a fresh revenue stream.

Analysts note that the robot project is still nascent, with technical hurdles and uncertain market demand. Still, CEO Elon Musk has consistently touted Optimus as a long‑term growth driver, hinting the unit could eventually produce billions in revenue once production is fully scaled.

Investment in AI and autonomous‑driving tech also contributed to the higher cost picture. Tesla is pressing on with its Full Self‑Driving (FSD) suite, pursuing regulatory approval and wider consumer adoption while facing competitors that are quickly closing the gap.

The market reaction was mixed; the shares fell following the profit warning, though a portion of investors remained optimistic that the bets on robotics and AI will eventually pay off. Tesla said it will concentrate on boosting margins in the coming quarters as the Optimus line hits efficiency goals and AI‑related income starts to materialize.