4 Key Takeaways from Tesla’s Earnings Call

Tesla (TSLA) CEO Elon Musk and other executives discussed Tuesday the postponement of the company’s “robotaxi” event to October and the company’s plans to produce a new, more affordable vehicle that could begin next year.

The electric vehicle maker reported disappointing second-quarter results after ringing the bell ahead of its quarterly analyst call. The results sent shares lower in late trading, contributing to a 2% loss in the regular session that sent the stock lower again year-to-date.

Robotaxi Event Delayed to October 10th

During the call, Musk confirmed reports that earlier this month the planned date for the robotaxi event had been pushed back from August to October, providing a new date: October 10.

The event was originally scheduled for Aug. 8. Musk previously confirmed the delay, citing what he called a “major design change.” Musk said Tuesday it was unclear when the vehicles would appear on roads, citing the company’s development timeline for its autonomous driving software.

Musk has discussed plans for an “Airbnb on wheels,” in which robo-taxi rides would be split between a Tesla-owned fleet that can be booked through the Tesla app and consumer-owned Tesla vehicles that could provide “instant scale.” Tesla owners could let their cars carry other customers, then call them back, and Tesla would take a cut of the revenue generated by those rides.

More affordable model likely in first half of 2025.

Musk said Tesla is still working to develop a “more affordable model,” which could begin production in the first half of next year. The company said in its earnings call that the more affordable models are to be produced on the same production lines as current Tesla models.

Analysts estimate that about half of the car market is for cars priced under $30,000, and say a cheaper model could make Tesla more competitive with Chinese manufacturers that already produce cars at that price point.

The “Optimus” robot will be used in Tesla factories in 2025, sold to other factories in 2026.

Musk provided more details after the X listing helped Tesla shares rise on Monday, saying the company plans to hire an unspecified number of Optimus robots to perform tasks at Tesla factories next year.

The company also plans to ramp up robot production next year, with a goal of selling the robots in 2026. Musk has said in previous earnings calls that the robots could one day become Tesla’s most valuable product because he believes there is “no significant limit to the size of the economy” for a robot that can perform everyday tasks on command.

Major Automakers Interested in Licensing Fully Self-Driving Technologies

Musk said “several” large traditional automakers have expressed interest in licensing Tesla’s autonomous driving software, but he declined to comment further on the negotiations.

Traditional automakers have announced a series of partnerships with electric vehicle makers over the past year, indicating a willingness for other automakers to partner with them to advance their efforts.

Musk said the licensing deal would likely take “several years” to become revenue-enhancing for Tesla, as it would take time for a traditional automaker to implement the necessary software and camera technology that Tesla uses.

Musk also said the company is preparing to seek regulatory approval for the latest versions of its supervised self-driving software from regulators in Europe and China “soon.” He said he expects those approvals by the end of the year.