Elon Musk said Tesla's robot will be 'incredible surgeon,' left Wall Street with no guidance on EVs

During Tesla's recent earnings call, CEO Elon Musk painted an ambitious picture of the company's future yet left investors with more questions than answers. With the expiration of a key federal tax credit, there was no discussion about the demand for Tesla's electric vehicles. Important topics such as the Cybertruck launch and the implications of tariffs on auto parts were noticeably absent, contributing to a nearly 4% drop in Tesla's stock during after-hours trading. Instead of addressing sales figures and earnings, which fell short of expectations, Musk focused on his grand vision for the future of the company. He emphasized the potential of robotaxis, claiming that many skeptics do not fully grasp the upcoming technological revolution. "It's going to be like a shock wave," Musk stated, hinting at the transformative impact of software updates that could turn millions of existing vehicles into fully autonomous cars. Despite his claims, Tesla has yet to match competitors like Waymo and Baidu's Apollo Go in deploying commercial robotaxi services, remaining limited to pilot projects. Musk previously suggested that Tesla could enable autonomous ride-hailing for roughly half of the U.S. population by the end of the year, yet the company still lacks vehicles that can operate safely without a human present. Musk also announced plans for a robotaxi service in Austin by year-end, with expectations to expand to eight to ten cities by the end of 2025, though initially with human drivers onboard. Tesla's finance chief, Vaibhav Taneja, noted that the customer base for Tesla's Full Self-Driving (FSD) system is still modest, with only 12% of users opting to pay for the service. FSD revenue has declined compared to last year, accounting for less than 2% of total revenue in the latest quarter. Shifting focus to humanoid robots, Musk reiterated his belief that Tesla's Optimus robot could become the 'biggest product of all time.' He raised the stakes by claiming that Optimus could one day function as a surgeon, suggesting a world where poverty is eradicated and medical care is universally accessible. The anticipated new version of Optimus, dubbed V3, is expected to be demonstrated in early 2026. Musk also addressed his controversial new pay package, potentially worth $1 trillion, which is set to be voted on at Tesla's annual shareholder meeting in November. While discussing the robot army he envisions, Musk expressed his desire to maintain influence over its development, criticizing advisory firms that oppose his pay plan. Despite a 12% revenue increase in the third quarter compared to the previous year, analysts predict a 2% decline in the fourth quarter. The call lacked any concrete strategies to rekindle consumer excitement, with Tesla's brand ranking falling to 25th on the Interbrand 2025 Best Global Brands list, down from 12th the previous year. Investors raised questions about upcoming products, but the investor relations team declined to address them during the call, stating it was not the right venue for such discussions.