Tesla (TSLA) CEO Elon Musk and other executives on Tuesday discussed the postponement of the company’s “robotaxi” event to October and its plans for production of a new, more affordable vehicle that could start next year.
The electric vehicle maker reported disappointing second quarter earnings after the bell ahead of its quarterly call with analysts. The results sent the shares lower in late trading, adding to a 2% loss in the regular session that sent the shares back into the red year-to-date.
Robotaxi Event Delayed to Oct. 10
Musk on the call confirmed reports that from earlier this month that the planned date for its robotaxi event had been delayed from August to October, providing a new date: Oct. 10.
The event was originally scheduled for Aug. 8. Musk had previously confirmed the delay, citing what he called an “important design change.” Musk on Tuesday said it was unclear when then vehicles would be on the roads, citing the timeline of the development of the company’s self-driving software.
Musk discussed plans for an “Airbnb on wheels,” with robotaxis split between a Tesla-owned fleet that can be ordered through the Tesla app and consumer-owned Tesla vehicles that could provide “instant scale.” Tesla owners would be able to allow their cars to give rides for other customers, then call them back, with Tesla taking a portion of the revenue generated by those rides.
More Affordable Model Likely for First Half of 2025
Musk said Tesla is still working to develop a “more affordable model” that could begin production in the first half of next year. The company said in its earnings release that more affordable models are expected to be built on the same manufacturing lines as Tesla’s current models.
Analysts have estimated that roughly half of the car-buying market exists below $30,000 and said that a lower-cost model could make Tesla more competitive with Chinese manufacturers already making cars below that price point.
‘Optimus’ Robot to be Used in Tesla Factories in 2025, Sell to Other Factories in 2026
Musk provided more detail after a post on X helped send Tesla stock higher Monday, saying the company plans to have an unspecified number of Optimus robots performing tasks in Tesla factories next year.
The company also plans to increase production of the robots next year, with the goal of selling the robots in 2026. Musk has said in previous earnings calls that the robots could someday be Tesla’s most valuable product, as he believes there is “no meaningful limit to the size of the economy” for a robot that can perform everyday tasks on command.
Major Automakers Interested in Licensing Full-Self Driving Technology
Musk said “a few” major legacy automakers have expressed interest in licensing Tesla’s self-driving software, but declined to comment further on negotiations.
Traditional car makers have announced a number of partnerships with EV manufacturers over the past year, suggesting that other automakers are willing to partner to advance their efforts.
A licensing agreement would likely take “several years” to contribute to Tesla’s revenue as it would take time for a legacy automaker to adopt the necessary software and camera technology that Tesla uses, Musk said.
Musk also said the company is preparing to request regulatory approval for the latest versions of its supervised self driving software from regulators in Europe and China “pretty soon.” He said he expects those approvals by the end of the year.