Tesla posts 43% profit slump as Optimus robot production scales up in California

Tesla reported a sharp 43% drop in profit for the most recent quarter, while its revenue stayed roughly flat and operating expenses rose sharply as the firm accelerated work on the Optimus humanoid robot, AI initiatives and self‑driving development.

The earnings statement showed revenue unchanged versus the same quarter a year ago, mirroring a dip in vehicle sales and service earnings. Concurrently, costs surged, largely due to increased outlays on robotics, artificial‑intelligence research and the polishing of autonomous‑driving software.

A major driver of the higher expenses is the commencement of mass production of the Optimus robot at Tesla’s newly inaugurated California plant. The facility, revealed earlier this year, is meant to shift the robot from prototype to commercial‑scale output, a step Tesla says could eventually augment its manufacturing workforce and open a fresh revenue stream.

Analysts note that the robot effort is still in its early stages, with technical hurdles and uncertain market demand. Still, CEO Elon Musk has repeatedly framed Optimus as a long‑term growth catalyst, implying the unit could eventually produce billions once full‑scale production is achieved.

Investments in AI and autonomous‑driving technology also contributed to the cost increase. Tesla keeps advancing its Full Self‑Driving (FSD) package, pursuing regulatory approval and wider consumer adoption while competing with rivals that are quickly closing the gap in similar capabilities.

The market reaction was mixed; the shares fell after the profit warning, though some investors remained hopeful that the strategic wagers on robotics and AI will pay off over time. Tesla said future quarters will aim to lift margins as the Optimus line hits efficiency goals and AI‑related income starts to materialize.