Tesla’s latest third-quarter earnings call left investors with more questions than clarity, as CEO Elon Musk largely avoided addressing critical business fundamentals and instead shifted the spotlight toward ambitious long-term visions. Many expected updates on electric vehicle demand following the expiration of a major U.S. federal tax credit, insights into Cybertruck momentum, or the impact of global tariffs on auto parts. However, none of those topics made it into the discussion. The absence of these key details contributed to a nearly 4% drop in Tesla stock during after-hours trading, reflecting growing investor anxiety over the company’s short-term trajectory.

Instead of providing updates on sales performance, profit margins, or delivering explanations regarding earnings that fell short of expectations, Musk focused heavily on Tesla’s future driven by robotaxis and autonomous technology. According to Musk, many within the investment community fail to grasp the explosive potential of Tesla’s upcoming transition into a fully autonomous vehicle network. He emphasized that millions of existing Tesla vehicles could transform into self-driving cars via a software update, enabling them to operate as revenue-generating robotaxis. Musk described this expected shift as a “shockwave,” reiterating previous promises that Tesla owners could earn passive income while their vehicles transport passengers autonomously during idle hours.

Despite these visions, Tesla remains significantly behind competitors in deploying fully functional commercial robotaxi services. Alphabet’s Waymo continues expanding in U.S. cities with regulatory approvals, and Baidu’s Apollo Go service is rapidly increasing its presence in China and other international markets. Tesla, in contrast, maintains only limited pilot projects and its vehicles still require drivers to remain attentive and ready to intervene at all times.

During the previous earnings call in July, Musk claimed that Tesla would have autonomous ride-hailing capabilities available to at least half of the U.S. population by the end of the year. On this latest call, he refined that claim, stating that Tesla’s robotaxi service would begin fully driverless operations in Austin, Texas, by year-end, and expand to eight to ten cities by late 2025, even if initial deployments require human drivers on board as safety operators.

Meanwhile, Tesla’s progress in monetizing Full Self-Driving (FSD) remains limited. Chief Financial Officer Vaibhav Taneja noted that only 12% of Tesla owners currently pay for FSD Supervised, the company’s partially automated driving system. However, he did not provide updated subscription pricing details, particularly after a series of promotional discounts intended to boost adoption. According to Tesla’s investor report, FSD revenue was lower than the $326 million reported during the same quarter last year, meaning it represented less than 2% of total quarterly revenue. This indicates that Tesla has yet to convert autonomous driving from a visionary promise into a substantial revenue engine.

After discussing robotaxis, Musk escalated excitement by shifting the conversation to Tesla’s humanoid robot, Optimus. He reiterated that Optimus could potentially become the most significant product in the company’s history. The bipedal robot, still in development and not yet available commercially, has previously been described by Musk as capable of performing labor-intensive tasks in factories or even assisting in domestic settings, including childcare. This time, Musk elevated expectations by suggesting that future versions of Optimus would be capable of performing complex roles, including surgical operations. He described a future where the combination of Optimus and advanced self-driving capabilities could lead to a world without poverty and universal access to high-quality medical care.

Musk revealed that Tesla plans to unveil a new version of the robot, referred to as Optimus V3, during the first quarter of 2026. While some investors view these projections as overly ambitious or unrealistic given the company’s current challenges, others see them as indicative of Tesla’s broader ambition to transition from an automotive manufacturer to a robotics and AI leader.

The call concluded with Musk merging the discussion of robotics with his personal financial interests, referencing Tesla’s recently announced compensation plan, which could be worth up to $1 trillion and increase his ownership stake by approximately 12%. The controversial pay package will be subject to a shareholder vote at the company’s annual meeting scheduled for early November. Musk rhetorically questioned whether he would have sufficient control over Tesla’s future “robot army” without strong influence within the company, indicating that he considers strategic authority essential to pursuing his long-term vision.

During the call, Musk criticized proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis, both of which recommended that shareholders vote against his new compensation plan. He accused them of lacking understanding of Tesla’s future potential and went as far as labeling them “corporate terrorists.” Representatives of ISS and Glass Lewis did not immediately respond to requests for comment.

Despite Musk’s futuristic ambitions, Tesla remains heavily reliant on vehicle sales for the majority of its income. The company recorded a 12% increase in revenue compared to the same quarter last year, but this came after two consecutive quarters of year-over-year declines. Analysts are forecasting a potential 2% drop in revenue during the fourth quarter, signaling concerns about slowing demand in the EV market and increasing competitive pressure from both established automakers and new entrants.

Notably absent from the earnings call was any acknowledgment of Tesla’s recent decline in brand perception. The company fell from 12th place in 2024 to 25th in the Interbrand 2025 Best Global Brands ranking. Interbrand’s report highlighted how Tesla, once seen as the bold disruptor of the automotive industry, is now facing concerns tied to Musk’s political activities and the company’s lack of fresh consumer-facing products, raising doubts about its ability to sustain high profit margins.

Investors had submitted questions regarding new product developments via Tesla’s online forum, hoping for insight into upcoming vehicles or near-term strategies to reignite consumer excitement. However, investor relations executive Travis Axelrod declined to address those questions, stating twice that the earnings call was “not the appropriate venue” to discuss future product announcements.

As Tesla continues navigating a rapidly evolving industry, the company faces pressure to balance Musk’s ambitious long-term vision with the immediate need to address investor concerns around demand, competition, and financial performance. For now, Tesla’s future remains caught between present challenges and a future filled with self-driving fleets and humanoid robots—if those promises ultimately become a reality.