Tesla Profits Rebound Amid AI Pivot

Tesla's latest earnings report highlights a strategic shift toward AI and robotics as its core automotive business faces continued pressure.

Musk announced that production of the 'Optimus' humanoid robot could begin by late summer, while 'Robotaxis' are targeted for deployment in a dozen states by year-end.

However, the company admitted that older vehicles with Hardware 3 computers will not achieve true unsupervised full self-driving without hardware upgrades.

Investors remain divided on the pivot, as the heavy spending is expected to result in negative free cash flow for the remainder of 2026.