Tesla pivots to robotics as profits slump 43% in Fremont

Tesla confirmed that the units emerging from its California facility represent the first production-quality versions of the robot. The company stated the manufacturing process is now viable for a commercial product, even as it continues to refine the hardware. However, this progress coincides with a challenging financial landscape. Total revenue remained stagnant at $28.04 billion, failing to meet the previous quarter’s $28.23 billion, while expenses ballooned due to heavy R&D spending on autonomous driving and robotics.

The core automotive business showed little momentum, with EV sales holding flat at $20 billion. Tesla delivered 486,532 vehicles, a slight increase from the prior quarter but a decline compared to the same period last year. Meanwhile, the energy storage sector suffered a 16% revenue drop, hampered by tariff-related refunds. While the services division—bolstered by Full Self-Driving subscriptions—grew by 33% to $4.6 billion, these gains were insufficient to offset the massive capital outflow for new technologies. Consequently, net income fell to $787 million, down from $1.37 billion the previous year, leaving the company heavily reliant on its services segment to remain profitable.