Elon Musk revealed four major developments during Tesla’s earnings call — why they could be game-changers
The company is going all-in on Robotaxi service and Optimus robots.
- Tesla's share price is plummeting following Q2 earnings.
- CEO Elon Musk shared several announcements about the company's future in earnings call.
- Tesla's car business is taking a hit as company shifts its focus to other sectors.
Tesla (NASDAQ: TSLA) reported earnings on July 23. The clean energy and electric vehicle company's share price has dropped over 9% since the market opened following the earnings call. Wall Street may not be enthusiastic about the company's upcoming quarters, but CEO Elon Musk made four surprising statements that could be game changers if they prove to be true.
Musk began the call praising the launch of Tesla's Robotaxi autonomous ride hailing service. The eccentric CEO touched on several hot topics including the production of a more affordable model and the future of the Optimus Tesla Bot.
Elon Musk says Tesla Robotaxi service will go national
Tesla Robotaxi launched in Austin, Texas and is seeking approval to operate in the "the Bay Area, Nevada, Arizona, Florida" and more, Musk said in the opening remarks of the earnings call. He went on to say "I think we'll probably have autonomous ride hailing in half of the U.S. by the end of the year".
Regulatory approvals and safety tests could be huge obstacles preventing the company from achieving this goal. The global autonomous taxi market could generate $1.3 trillion in revenue by 2030, according to Yahoo Finance. Tesla aims to compete with Waymo for market share and become a leader in the space with the Tesla Robotaxi.
Your Tesla EV will be able to join Robotaxi fleet, according to Musk
During the call Musk also mentioned that Tesla owners will be allowed to add their Tesla EVs to the Robotaxi fleet and earn income from their participation in the Robotaxi service in 2026. This timeline is an estimate, but the technology to accomplish such a feat exists. Tesla board members also discussed the development of an upcoming Full-Self Driving (Unsupervised) autonomous driving mode that could help make this vision possible.
Musk and board members did not further explain how Tesla owners could participate in the program, but the idea is interesting for several reasons. First, the prospect of your vehicle generating a source of income on its own is completely novel. Second, it seems far-fetched, but Tesla has already made huge strides in the semi-autonomous driving space. The Robotaxi is proof that it can produce fully-autonomous EVs as well.
More affordable Tesla EVs expected by Q4
When asked about a timeline for Tesla's more affordable EVs, Musk confirmed that Tesla began production on a more affordable EV in June. The new affordable Tesla EV is a smaller iteration of the Model Y. There's a huge demand for an entry-level Tesla EV, especially considering the elimination of the $7,500 federal electric vehicle tax credit.
EVs will become notably more expensive once the tax credit is eliminated in September. The current most affordable Tesla EV is the Tesla Model 3 sedan ($42,490). The cheapest EV on the market for 2025 is Nissan Leaf ($29,280).
Following the earnings call, the more affordable Tesla is slated for Q4 2025 based on sentiments from the board. The release of a smaller, more affordable Model Y could have a huge impact on the market, as few competitive affordable EVs under $40,000 exist.
Rise of Optimus, the Tesla Bot
One of the wildest statements of the earnings call was in regards to Optimus, Tesla's robot and its development. Musk said the Optimus 3 design "has all the degrees of freedom that you really want or need". He went on to say "if we are not roughly making 100,000 Optimus robots a month, I would be shocked".
Musk's vision for Tesla goes far beyond a car company. The automaker has made progress in robotics, autonomous vehicles, EV charging infrastructure, and more. The CEO once said that the Tesla Optimus robot could one day outsell its cars, according to The Independent.
Following the Q2 earnings call, Tesla is in a period of adaptation and transformation. The company experienced a huge drop in revenue and is adjusting to a more competitive EV landscape.
Tesla is no longer the only game in town and competitors like GM and Hyundai are providing alternatives to consumers. The company is looking to the future as investors are bracing for impact due to current issues with its car business.