Elon Musk frets over controlling Tesla’s ‘robot army’ as car biz rebounds slightly

Tesla has recently celebrated a record sales quarter, bringing a much-needed boost after a rocky start to 2025. However, CEO Elon Musk is now looking towards a more ambitious future, focusing on creating a "robot army" and fulfilling his long-standing promise of self-driving vehicles. Achieving these goals is crucial for unlocking the potential of a $1 trillion compensation package that Tesla plans to offer him. The contrast between Tesla's automotive sales and Musk's AI-driven vision has never been more pronounced. In the third quarter of 2025, Tesla delivered 497,099 vehicles, generating $21.2 billion in automotive revenue, its highest figure in over a year. Yet, despite these impressive numbers, the company's profit of $1.4 billion was still 37% lower than the same quarter last year, highlighting ongoing challenges. Significant increases in operating expenses—up 50% year-over-year—were cited as a major factor affecting profitability. This surge is attributed to investments in AI development and research, as well as restructuring costs nearing $240 million, although details on the latter remain unclear. Additionally, tariffs imposed during the quarter also impacted earnings, costing Tesla approximately $400 million. Musk emphasized the pivotal moment Tesla is facing, stating that they are at the "beginning of scaling, quite massively, Full Self-Driving and Robotaxi," which he believes will revolutionize transportation. As the company gears up for its final quarter of the year, it faces pressure to match or exceed past car shipment figures from 2024 and 2023. To aid in this endeavor, Tesla is introducing more affordable versions of the Model 3 and Model Y. However, despite these optimizations, the company is falling behind its ambitious target of 50% year-over-year growth, which it once promised to investors. Musk has long urged stakeholders to look beyond Tesla's car manufacturing, betting on a future where self-driving vehicles could rival services like Uber, and where the humanoid robot Optimus could become a top-selling product. During the recent conference call, Musk mentioned plans to begin production of Optimus's third version in early 2026, although he acknowledged the difficulties in bringing the robot to market. The future of AI, robotics, and autonomous driving will require significant investment, with capital expenditures expected to rise dramatically in 2026. This involves not only the development of new technologies but also increased spending on talent to remain competitive in the AI field. As Tesla navigates these challenges, the backdrop of Musk’s proposed $1 trillion share compensation looms large, with a vote set to take place at the upcoming annual shareholder meeting. Despite some advisory groups recommending against the package, it appears likely to pass due to strong shareholder backing. Musk has expressed that he prioritizes control over the compensation, stating that he wouldn’t feel secure building a "robot army" if he risks being ousted due to external recommendations. This ambitious pursuit of AI and robotics marks a significant chapter in Tesla's journey, as the company seeks to redefine the landscape of transportation.