5 Insights from Elon Musk on Robotaxi Timeline, Optimus Robots, Tariffs, Energy, and Tesla’s Future

Elon Musk stepped off Air Force One upon arriving at Morristown Municipal Airport in Morristown, New Jersey, on March 22, 2025. U.S. President Donald Trump will be spending the weekend at Trump National Golf Club in Bedminster, New Jersey. Brendan Smialowski | Afp | Getty Images

On Tuesday, Musk attempted to inspire Tesla supporters, downplaying a disappointing first-quarter earnings report and emphasizing a vision of "sustainable abundance." Tesla fell short of expectations on both revenue and earnings, noting a staggering 71% drop in net income compared to the previous year. His remarks surfaced amidst a challenging year for the electric vehicle manufacturer, with shares decreasing nearly 40%, a decline in European market share, and regular protests occurring at showrooms across the U.S.

When the earnings report was released after hours on Tuesday, the stock showed little reaction, with focus shifting to Musk’s comments in the earnings call. However, shares surged on Wednesday along with the broader stock market.

Musk quickly addressed his ongoing engagement with the so-called Department of Government Efficiency established under President Donald Trump, indicating he would scale back his federal budget-cutting activities starting in May. "I’ll have to continue doing it for, I think, probably the remainder of the president’s term," Musk mentioned during the call. He continued, "So I think I’ll continue to spend a day or two per week on government matters for as long as the President would like me to do so and as long as it is useful, but starting next month, I’ll be allocating far more of my time to Tesla."

Here are five key statements from Musk on the Tesla earnings call, as transcribed by FactSet:

Future of Tesla:
"The future of the company is fundamentally based on large-scale autonomous cars and vast numbers of autonomous humanoid robots. The value of the company that makes truly useful autonomous humanoid robots and autonomous useful vehicles at scale at low cost, which is what Tesla aims to achieve, is staggering. I continue to believe that with excellent execution, Tesla will be the most valuable company in the world by far."

Financial impact of robotaxi:
"I mentioned in the last earnings call that we anticipate seeing the material impact of autonomy around the middle of next year. We expect to begin selling fully autonomous rides in June in Austin, as we’ve indicated for several months. The key question from a financial perspective is when it becomes material enough to influence the company’s bottom line significantly—that’s likely around the middle of next year, in the second half."

Optimus robots:
"In terms of Optimus, we are making good progress. We expect to have thousands of Optimus robots working in Tesla factories by the end of this year, starting this fall. We aim to scale Optimus production faster than any product in history, targeting millions of units per year as soon as possible. I am confident we can reach 1 million units annually in less than five years, perhaps by 2029 or 2030."

Tariffs:
"Tariffs continue to pose challenges for a company with slim margins. However, we maintain localized supply chains in America, Europe, and China, which positions us stronger than our competitors. While I expect to face questions about tariffs, it’s crucial to note that tariff decisions rest solely with the President of the United States. I will offer my guidance to the President, but the final decisions are his. I have consistently advocated for lower tariffs as beneficial for prosperity, but ultimately it is up to the elected officials to make that decision."

Tesla energy segment:
"Regarding our energy sector, the business is thriving. The Megapack enhances utility companies’ capacity to deliver more total energy than would otherwise be possible. When considering the energy capabilities of a grid, it exceeds simply total energy output per year. If power plants could operate at peak capacity 24 hours a day rather than at reduced levels at night, the total energy output of existing power plants could effectively double."