Tesla Profit Falls 43% as Elon Musk's Optimus Robot Spending Soars — 'Bumpy' Road to 20,000 Robots a Week

Tesla Profit Falls 43% as Elon Musk

Tesla's net income fell 43% in the third quarter of 2026 to $787 million, down from $1.37 billion in the same period last year, as heavy spending on artificial intelligence and its Optimus humanoid robot ate into profits. Analysts said none of the company's revenue gains were enough to outpace that spending.

There were bright spots: Tesla's services business, which includes subscriptions to its Full Self-Driving software, grew 33% to $4.6 billion for a record $734 million in gross profit. Its solar and energy storage revenue, however, fell 16% year-on-year to $2.8 billion. In the same results, Tesla announced that Optimus production has begun on high-volume lines at its Fremont factory in California, producing what it calls its first production-quality robots.

Chief executive Elon Musk told investors the Optimus ramp is still early and will be slow and somewhat bumpy because it is such a radically new product, but he claimed Tesla could make 20,000 robots a week by the end of 2027. Musk has previously predicted that Optimus will eventually account for around 80% of Tesla's value, and has spoken of the robots one day lifting the company's market value to $25 trillion.

Source: The Times of India

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