Elon Musk Just Admitted Optimus Has No Supply Chain, But There Are Still Reasons to Be Optimistic

Tesla (TSLA) delivered its best quarter ever on paper and still lost investors. The company reported record second-quarter revenue of $28.24 billion, along with a record 480,126 deliveries. Vehicle demand outpaced supply during the quarter, with Tesla selling more vehicles than it produced. However, the stock still dropped more than 4% during the earnings call and is down over 13% in morning trading today. Investors were concerned about adjusted EPS of $0.33, which came in well short of the Wall Street consensus. Heavy capital spending also pushed free cash flow into negative territory for the first time in over two years.

Elon Musk spent much of the call defending the spending. He said more customers are signing up for Full Self-Driving (FSD), with active subscriptions up 56%. The CEO said that the massive capex year would eventually deliver incredible returns for investors. On robotaxis, Tesla aims to keep scaling miles driven by more than 10% per week. The service went live in three Florida cities earlier this month. Musk also confirmed volume production of the Cybercab has started, without a steering wheel or pedals, though the delivery timing remains unclear.