Axios
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Tesla's push into AI and robotics is proving costly
Tesla's significant investments in humanoid robots, self-driving cars, and AI chips are currently impacting its profits. Despite a revenue increase driven by record vehicle deliveries, operating profit saw a notable decrease due to heavy research and development spending. The company plans to invest over $25 billion this year, with that figure expected to rise in the coming years. To accelerate these investments, Tesla intends to borrow up to $30 billion for robotaxis, Optimus robots, semiconductors, solar manufacturing, and AI infrastructure. CEO Elon Musk expressed strong optimism for the future, believing these investments will yield exceptional returns. Tesla reported a 23% year-over-year revenue jump to $28 billion in the second quarter. However, net income declined by 5% to $1.1 billion, and operating margin narrowed to 1.4%. The company has started production of its driverless Cybercab and expects the Tesla Semi to begin production later this year. Optimus humanoid robot production is anticipated to start at the Fremont factory this year, though Musk acknowledged the manufacturing challenges. Tesla is also focused on expanding battery pack manufacturing capacity, recognizing it as a bottleneck to increased vehicle production.