Tesla reports second-quarter results on Tuesday, investors want robotaxi update

Some institutional investors will be focused on the health of Tesla’s automotive gross margin and the company’s operating costs after the company carried out mass layoffs, offered price cuts and other incentives aimed at boosting electric vehicle sales.

Retail investors who previously submitted questions via Say Technologies’ platform are hoping for answers about the company’s delayed plan to unveil CyberCab, a “dedicated robot taxi,” as well as the company’s progress in autonomous vehicle technology.

Analysts on Monday expected Tesla to report 62 cents per share in adjusted earnings on revenue of $24.77 billion for the period ending June 30, 2024, according to LSEG.

Retail investors who submitted questions via Say Technologies’ platform in advance are hoping for answers on the company’s delayed plan to unveil the CyberCab, a “dedicated robotaxi” and advances in autonomous driving technology. They also want input on Tesla’s near-term priorities; the outlook for its fast-growing battery storage business; the status of a new factory it has promised to build in Monterrey, Mexico; and more.

In light of Musk’s recent endorsement of former President Donald Trump and the fact that the Tesla CEO has become a Republican donor this presidential election cycle, Tesla shareholders also asked political questions ahead of the call.

One asked, “Do you think the Trump/Vance administration will support Tesla and electric vehicles? How confident are you based on your conversations?” And another asked, “How can Elon Musk support/fund a party that denies climate change, while Tesla’s mission is directly derived from fighting climate change?”

Former President Trump suggested he would end subsidies and other federal programs that help buyers and manufacturers of all-electric vehicles, but not other automakers.

Reuters reported last week that Musk’s political and polarizing statements “have raised concerns about the Tesla brand, especially in liberal states like California, which accounts for 10% of the company’s global deliveries.” Tesla registrations in California fell to 52,211 vehicles in the second quarter, according to data from the California New Car Dealers Association.

Investors also asked questions through Say Technologies about Tesla’s progress with humanoid robots, which the company plans to deploy in its factories.

Musk claimed during the annual shareholder meeting in June that Tesla’s Optimus robots would one day be the catalyst for raising the company’s market capitalization to a whopping $25 trillion. At that meeting, Musk called himself “pathologically optimistic.”

Early Monday morning, Musk wrote in a social media post on X that Tesla’s Optimus humanoid robots will be “really useful” and will be “produced in small quantity” for internal use at Tesla next year. He added that he would “hopefully” be produced in larger quantities and available for use by “other companies in 2026.”

In April, Musk told Tesla shareholders during a first-quarter earnings conference call that Optimus would be “producing a limited amount of product in the natural factory itself doing useful work before the end of this year” and that Tesla “may be able to sell it externally by the end of next year.”

Tesla is a latecomer among tech companies developing humanoid robots. Its competitors in Optimus include Boston Dynamics, Agility Robotics, Unitree and others. Robotic companies such as Sanctuary, Apptronik, 1X, Fourier are also working on dexterous manipulation equipment that mimics human hands.

Musk has long promised investors that futuristic Tesla products or services will be ready soon, even if they don’t exist beyond the concept phase for now.

For example, the company’s billionaire CEO promoted the concept of a next-generation Roadster at an event in November 2017 and again in June 2018 in a series of tweets. At the time, he said, “SpaceX’s option for the new Tesla Roadster will feature ~10 small rocket engines arranged seamlessly around the car.” The engines would improve speed and “even allow Tesla to fly,” he wrote at the time. The refreshed Roadster is still not in production six years later, though Tesla has collected $250,000 in deposits from customers who wanted one.

In another example, in 2015, Musk told shareholders that Tesla cars would achieve “full autonomy” within three years. In 2016, Musk said a Tesla car would be able to drive across the country without requiring any human intervention by the end of 2017. And in 2019, during a call with institutional investors that would help him raise more than $2 billion, Musk said Tesla would have 1 million robotaxi-ready vehicles on the road by 2020, capable of doing 100 hours of driver work per week, earning money for their owners.

None of this has happened yet.

Tesla recently made major changes to its driver-assistance software, sold in the U.S. under the names Autopilot and FSD-S (Full Self Driving Supervised), generating enthusiasm and positive feedback among many fans and owners.

During Tuesday’s call, Musk and other executives are expected to discuss the remaining challenges they face in delivering on those long-standing promises of autonomous driving.