Tsla: Tesla’s latest earnings call was packed with updates from CEO Elon Musk, who discussed progress on artificial intelligence, humanoid robots, and self-driving technology, while also emphasizing the company’s broader ambitions across multiple projects.

Musk Calls It a “Critical Inflection Point” for Tesla

Musk opened the call by saying Tesla is at a “critical inflection point” as it advances toward fully autonomous driving. He said the company’s vehicles are already capable of becoming fully self-driving with a software update and that production expansion will continue “as fast as we can,” depending on supply chain capacity, as per a report.

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Vehicle Production Could Reach 3 Million Annually

Musk said Tesla’s vehicle production could expand at an “annualized rate of 3 million within 24 months,” or possibly sooner if suppliers can keep pace. He said the biggest production expansion will come from the Cybercab, which is set to begin production in the second quarter of next year, as per a Business Insider report.

Robotaxi Operations Targeted for 2025

Tesla expects to begin operating robotaxis in Nevada, Florida, and Arizona by the end of 2025, pending regulatory approvals, as per the report. The company said its fleet in Austin has already driven more than a quarter million miles without a driver behind the wheel, as per Business Insider.

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Optimus Robot Development Continues

Musk described bringing the Optimus humanoid robot to market as “incredibly difficult,” citing challenges in creating a robotic hand as capable as a human’s. He also pointed out that manufacturing the robot remains a challenge since a supply chain for humanoid robots doesn’t yet exist.

According to Musk, Optimus robots already operate inside Tesla’s engineering headquarters in Palo Alto, California, “24 hours a day, seven days a week.” Visitors can ask the robots to guide them around the building, he said.

Musk added that Tesla plans to unveil the next version, Optimus V3, in the first quarter of next year—“probably February or March.” He said it “won’t even seem like a robot—it will seem like a person in a robot suit.” Tesla plans to build production lines capable of producing up to one million Optimus units, making “rolling changes” and continuous improvements to the design.

AI Advancements and Chip Production

Musk said both TSMC and Samsung will produce Tesla’s new AI5 self-driving chip. Earlier this year, Tesla struck a $16.5 billion deal with Samsung to produce some of these chips at a Texas facility expected to open in 2026.

He said Tesla’s “explicit goal is to have an oversupply of AI5 chips,” clarifying that the company is “not about to replace Nvidia.” He added that if Tesla has more chips than needed for its vehicles and robots, they can be used in its data centers.

“Living” AI in Tesla Cars

Musk said Tesla’s upcoming AI upgrades will make its cars feel almost like “living creatures.” He said the company is introducing “radical” improvements that could make cars seem highly intelligent, joking that they might even “get bored.”

Expanding the AI and Engineering Teams

Musk said Tesla has added “a lot of new engineers,” including many recent graduates, who have contributed to the Optimus robot’s progress. He described the Optimus team as “very talented” and said Friday night meetings for the project sometimes last until midnight.

Difference Between Tesla AI and xAI

Musk explained that Tesla’s AI efforts and his separate company xAI operate on “opposite ends of the spectrum.” He said xAI’s Grok model focuses on artificial general intelligence, while Tesla’s AI models are much smaller—about 5% to 10% the size of Grok’s. “You could not possibly squeeze Grok onto a car,” Musk said, noting that Grok competes with OpenAI’s GPT and Google’s Gemini models.

“A Dozen Startups in One Company”

Musk said Tesla operates like “a dozen startups in one,” mentioning areas such as battery packs, the supercharger network, chip design, and AI software. He said Optimus at scale represents the “infinite money glitch,” describing a world where working becomes optional because the robot can achieve five times the productivity of a person and operate continuously.

CFO Discusses Tariff Impacts

Tesla CFO Vaibhav Taneja said tariffs affected the company’s energy storage business, even as the segment delivered record gross profit and margins. He said total tariff impacts for the third quarter were more than $400 million, split evenly between business areas.

Taneja added that Tesla’s Shanghai megafactory helps offset some of these impacts by supplying demand outside the U.S.

Shareholder Vote on Musk’s Pay Package

At the end of the call, Tesla CFO Vaibhav Taneja asked shareholders to approve Musk’s proposed $1 trillion pay package. Musk followed by saying he needs more voting control but cannot receive “supervoting” shares, since Tesla is already a publicly traded company, as per the Business Insider report.

FAQs

How many cars does Tesla plan to produce each year?
Musk said Tesla could reach an annualized production rate of 3 million vehicles within the next 24 months.

When will the Cybercab go into production?
Production for the Cybercab is expected to begin in the second quarter of next year.