Tesla starts Optimus robot production in California as profit falls 43%

Key Points:

• Tesla has begun production of its Optimus humanoid robot at its Fremont, California factory, repurposing space formerly used for electric vehicle manufacturing, marking the first production-quality units of the robot.
• CEO Elon Musk described the current stage as "early production," anticipating a slow and challenging ramp-up, but projecting a capacity of 20,000 robots per week by the end of 2027, while noting ongoing design and AI improvements are needed.
• Despite progress with Optimus and AI initiatives, Tesla's third-quarter financial results showed flat revenue at $28.04 billion and a 43% decline in net income to $787 million, impacted by increased expenses and lower regulatory credit sales.
• Vehicle deliveries slightly increased to 486,532 units, but overall EV sales revenue remained flat year-over-year at $20 billion, while the solar and energy storage segment fell 16% due to tariff-related refunds.
• Tesla's services business, including Full Self-Driving subscriptions, grew 33% year-over-year to $4.6 billion and contributed significantly to profitability, helping offset losses from rising investments in AI and robotics.