<p>Tesla CEO Elon Musk is putting humanoid robots at the centre of the company's future, as the electric vehicle maker ramps up Optimus production plans and spends heavily on artificial intelligence. During Tesla's second-quarter 2026 earnings call, Musk described the robot as potentially the biggest product in history, while warning that manufacturing it will be harder than building cars.</p><p>&nbsp;</p><p>The shift comes even as Tesla reported $28.2 billion in quarterly revenue, up 26% year on year. Yet adjusted earnings before interest, taxes, depreciation and amortisation fell 4% to $3.3 billion. Tesla shares subsequently dropped more than 14% by late Thursday afternoon.</p><p>&nbsp;</p><h2><strong>Elon Musk says Optimus is Tesla's biggest bet yet</strong></h2><p>Musk said Tesla would soon begin series production of Optimus Version 3, with the Fremont, California, factory being refitted to accommodate robot manufacturing. The facility's Model S and Model X production lines were expected to make way for Optimus this summer. Musk described the factory as "quite stunning".</p><p>&nbsp;</p><p>But he also acknowledged the scale of the challenge.</p><p>&nbsp;</p><p>"This is going to be the hardest product to scale-manufacture that we've ever made at Tesla," Musk said. Unlike electric cars, which can rely on established suppliers for many conventional components, Optimus has no existing supply chain for much of its hardware.</p><p>Musk said the robot must eventually learn tasks simply by receiving instructions or watching a video, without requiring specific programming. He called this one of the hardest problems to solve. Tesla's chief financial officer, Vaibhav Taneja, also warned of massive capital expenditure in 2026, much of it linked to Optimus and AI investment.</p><p>&nbsp;</p><h2><strong>Robotaxi expands as Tesla pushes beyond electric cars</strong></h2><p>Tesla is also expanding its Robotaxi service, which currently uses modified Model Y vehicles equipped with its Full Self-Driving technology. The service operates in selected locations in Texas, Florida and the San Francisco Bay Area. "We'll continue to scale, I think, very rapidly," Musk said, pointing to growth of more than 10% a week in miles driven. He also claimed that demand for Full Self-Driving is strong in markets where it is legally permitted, with some customers prioritising the software over the vehicle itself.</p><p>Tesla reported 480,126 Model Y and Model 3 deliveries combined in the quarter, without providing a separate breakdown for each model.</p><p>&nbsp;</p><h2><strong>Tesla's robot ambition faces a major manufacturing test</strong></h2><p>Musk's long-term ambition is to move Optimus from internal factory use to industrial customers, with production expected to ramp up in 2027. However, earlier production promises and reveal timelines have slipped. The company has yet to establish a large-scale commercial supply chain for the robot.</p><p>&nbsp;</p><p>The Roadster, another long-promised Tesla vehicle, also received no new update during the call. For investors, the central question is whether Tesla can turn its AI and robotics spending into sustainable revenue. The latest earnings call made clear that Musk sees Optimus as central to that future, but the manufacturing challenge remains unresolved.</p>

Elon Musk says Tesla's future depends on Optimus humanoid robots as the company prepares production and expands Robotaxi. Revenue rose 26% to $28.2 billion in Q2 2026, but adjusted earnings fell 4% and shares dropped over 14%.

Tesla CEO Elon Musk is putting humanoid robots at the centre of the company's future, as the electric vehicle maker ramps up Optimus production plans and spends heavily on artificial intelligence. During Tesla's second-quarter 2026 earnings call, Musk described the robot as potentially the biggest product in history, while warning that manufacturing it will be harder than building cars. The shift comes even as Tesla reported $28.2 billion in quarterly revenue, up 26% year on year. Yet adjusted earnings before interest, taxes, depreciation and amortisation fell 4% to $3.3 billion. Tesla shares subsequently dropped more than 14% by late Thursday afternoon. Elon Musk says Optimus is Tesla's biggest bet yet Musk said Tesla would soon begin series production of Optimus Version 3, with the Fremont, California, factory being refitted to accommodate robot manufacturing. The facility's Model S and Model X production lines were expected to make way for Optimus this summer. Musk described the factory as "quite stunning". But he also acknowledged the scale of the challenge. "This is going to be the hardest product to scale-manufacture that we've ever made at Tesla," Musk said. Unlike electric cars, which can rely on established suppliers for many conventional components, Optimus has no existing supply chain for much of its hardware. Musk said the robot must eventually learn tasks simply by receiving instructions or watching a video, without requiring specific programming. He called this one of the hardest problems to solve. Tesla's chief financial officer, Vaibhav Taneja, also warned of massive capital expenditure in 2026, much of it linked to Optimus and AI investment. Robotaxi expands as Tesla pushes beyond electric cars Tesla is also expanding its Robotaxi service, which currently uses modified Model Y vehicles equipped with its Full Self-Driving technology. The service operates in selected locations in Texas, Florida and the San Francisco Bay Area. "We'll continue to scale, I think, very rapidly," Musk said, pointing to growth of more than 10% a week in miles driven. He also claimed that demand for Full Self-Driving is strong in markets where it is legally permitted, with some customers prioritising the software over the vehicle itself. Tesla reported 480,126 Model Y and Model 3 deliveries combined in the quarter, without providing a separate breakdown for each model. Tesla's robot ambition faces a major manufacturing test Musk's long-term ambition is to move Optimus from internal factory use to industrial customers, with production expected to ramp up in 2027. However, earlier production promises and reveal timelines have slipped. The company has yet to establish a large-scale commercial supply chain for the robot. The Roadster, another long-promised Tesla vehicle, also received no new update during the call. For investors, the central question is whether Tesla can turn its AI and robotics spending into sustainable revenue. The latest earnings call made clear that Musk sees Optimus as central to that future, but the manufacturing challenge remains unresolved.

<p>Elon Musk says Tesla's future depends on Optimus humanoid robots as the company prepares production and expands Robotaxi. Revenue rose 26% to $28.2 billion in Q2 2026, but adjusted earnings fell 4% and shares dropped over 14%.</p>

Tesla optimus could be musk's biggest product yet, but he admits it faces a huge problem

Everyone's talking about AI replacing jobs. But here's a twist: one role is becoming more valuable than ever: chief of staff.

AI can't replace this high-paying job | World Business Watch 

<p>The rapid advancement of artificial intelligence is reshaping how we work, it is creating new opportunities for human-AI collaboration rather than replacement. According to the World Economic Forum's Future in the upcoming years, &nbsp;AI may displace 85 million jobs in a few years. It will simultaneously create 97 million new roles, marking a net positive transformation in the global employment landscape.</p>

<h2>The Evolution of Human-AI&nbsp;</h2><p>Modern workplaces are witnessing an unprecedented integration of artificial intelligence tools that augment human capabilities rather than replace them entirely. McKinsey's latest research indicates that 40 per cent of companies are already using AI to enhance productivity, with employees reporting increased job satisfaction when working alongside intelligent systems.</p>

<p>In creative industries, AI serves as a collaborative partner, helping designers generate concepts, writers overcome creative blocks, and marketers personalise campaigns at scale. "AI doesn't replace human creativity. It amplifies it," said Dr. Sarah Chen, Director of Digital Transformation at MIT's Computer Science and Artificial Intelligence Laboratory.</p><h2>Enhanced Decision-Making Through Data Intelligence</h2><p>One of the most significant advantages of human-AI collaboration lies in enhanced decision-making capabilities. PwC's Global AI Study shows that the companies leveraging AI for decision support are seeing around 25 per cent improvement in operational efficiency and a 30 per cent reduction in errors.</p><p>&nbsp;</p><p>In healthcare, radiologists working with AI-powered diagnostic tools achieve 94 per cent accuracy rates compared to 88 per cent when working independently, this is as per the research published in Nature Medicine. Similarly, financial analysts using AI-driven market analysis tools make more informed investment decisions, with portfolios showing 15 per cent better performance over traditional methods.</p><h2>Reskilling for the AI-Augmented Workplace</h2><p>The transition to AI-augmented workplaces necessitates comprehensive reskilling programmes. The World Bank's Human Capital Project emphasises that 50 per cent of all employees will need reskilling by 2025 to remain relevant in an AI-integrated economy.</p>

<p>Many top successful companies are investing heavily in employee development. Amazon's £575 million commitment to retraining it's 100,000 workers. Their this approach focuses on digital literacy, data analysis, and AI collaboration skills. These programmes report 78 per cent job retention rates and increased employee engagement.</p><h2>Addressing Ethical Considerations and Trust</h2><p>As human-AI partnerships evolve more in the future, addressing ethical concerns becomes very important. The European Union's AI Act provides a regulatory framework ensuring AI systems remain transparent, accountable, and human-centric.</p><p>Building trust between humans and AI systems requires clear communication about AI capabilities and limitations. Companies implementing transparent AI policies report 85 per cent employee acceptance rates, compared to 45 per cent in organisations without clear AI governance frameworks, according to Deloitte's AI Trust Survey.</p><h2>The Economic Impact of Collaborative Intelligence</h2><p>The economic implications of human-AI collaboration are substantial.</p><p>In manufacturing, human-AI teams have reduced production downtime by 45 per cent whilst improving product quality standards. Customer service departments using AI-powered chatbots alongside human agents achieve 67 per cent faster resolution times and 85 per cent customer satisfaction rates.</p><h2>The Future Workplace Ecosystem</h2><p>The workplace of 2030 will feature seamless human-AI integration across all sectors. Emerging technologies like natural language processing, computer vision, and predictive analytics will become as commonplace as email and spreadsheets today.</p><p>&nbsp;</p><p>This transformation requires proactive preparation from both employers and employees.</p>

<p>So companies must invest in robust AI infrastructure while prioritising human-centered design principles. Workers must embrace continuous learning and adaptability as core competencies.</p><p>&nbsp;</p><p>The future of work isn't about choosing between humans and AI. It's about creating synergistic partnerships that leverage the unique strengths of both.&nbsp;</p><p>&nbsp;</p><p>The organisations and individuals who embrace collaborative intelligence will most likely to shape the next chapter of human productivity and innovation.</p>

The workplace of tomorrow won't be humans versus machines, but humans working alongside AI to unlock unprecedented productivity and innovation. This partnership is transforming how we work, learn, and solve complex challenges.

The rapid advancement of artificial intelligence is reshaping how we work, it is creating new opportunities for human-AI collaboration rather than replacement. According to the World Economic Forum's Future in the upcoming years, AI may displace 85 million jobs in a few years. It will simultaneously create 97 million new roles, marking a net positive transformation in the global employment landscape.

<p>The workplace of tomorrow won't be humans versus machines, but humans working alongside AI to unlock unprecedented productivity and innovation. This partnership is transforming how we work, learn, and solve complex challenges.</p>

The future of work: Humans and AI side by side

According to the Wall Street Journal, Beverage giant PepsiCo is eliminating hundreds of corporate jobs from its North American snacks and beverages division.

PepsiCo plans to cut hundreds of jobs, says report

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Tesla optimus could be musk's biggest product yet, but he admits it faces a huge problem

AI can't replace this high-paying job | World Business Watch

The future of work: Humans and AI side by side

PepsiCo plans to cut hundreds of jobs, says report