Tesla Will Sell Cybercabs by Year’s End as Profit Falls 43%

Tesla’s latest results told two very different stories at once. On the one hand, the company says it is trying to get its driverless Cybercab into customers’ hands before the year is out, and it has started building its Optimus humanoid robot. On the other, its quarterly profit fell sharply as spending on AI, robots and robotaxis surged. The Tesla Cybercab sale target and the start of Tesla Optimus production show where Elon Musk is steering the company, but the numbers show what that bet is costing. Here is what Tesla announced and what it means.

The Cybercab Promise

On the company’s earnings call on 21 October, Tesla’s vice president of vehicle engineering, Lars Moravy, said, “We’re trying to get Cybercabs to customers by the end of this year, 2026.” The Cybercab is a two-seat electric vehicle designed without a steering wheel or pedals, built for Tesla’s robotaxi service.

Tesla says Cybercabs are already operating in its robotaxi fleet in Austin, Texas. Selling them to customers would be a much bigger step, and Tesla has not shared pricing or detailed ordering plans. Given the company’s history of ambitious timelines, many observers will wait to see deliveries before treating the date as firm.

Optimus Robot Production Begins

Tesla has started production of its Optimus humanoid robot at its factory in Fremont, California, in a space once used for making electric cars, as TechCrunch reported. Musk has argued that Optimus and Cybercab will eventually make up most of Tesla’s value.

Production is still early. Comments on the earnings call suggested some key production issues may not be fully solved until around the end of 2027.

The Numbers Behind the Bet

The results showed how expensive this shift has become:

• Revenue: about US$28 billion, roughly flat from a year earlier.
• Net income: US$787 million, down 43% from US$1.37 billion a year earlier.
• Operating income: US$718 million, down 56%.
• Deliveries: 486,532 vehicles, down 2.1%.
• Research and development spending: about US$2.76 billion, up 69%.

There were bright spots. Gross margin improved to 19.6%, and Tesla’s services business, including charging and insurance, grew 33% to a record US$4.6 billion in revenue. Tesla also said battery supply is limiting how quickly it can increase vehicle production, as Drive Tesla Canada noted in its breakdown of the results.

Why Tesla Is Spending So Heavily

Tesla is betting that autonomy and robotics will be worth far more than selling cars. Robotaxis could earn money every time they drive, rather than only when sold. Humanoid robots could open entirely new markets in factories and homes. Both require huge investment in AI computing, software and new factories before they earn much in return.

That is why profits are falling even as the company makes progress. Investors are effectively being asked to accept lower earnings today in exchange for a much bigger business later, if the technology delivers.

What It Means for Australians

Tesla has not announced plans to bring the Cybercab to Australia. A car without a steering wheel or pedals would also need regulatory approval before it could be sold or registered here. For now, Australian Tesla owners are more directly affected by software features, and the company’s broader progress on self-driving will shape what arrives locally over time.

For more on Musk’s recent announcements, see our coverage of the Tesla Roadster’s flying demo and his SpaceX share pledge. Our best electric cars in Australia guide covers EVs you can buy today.

A Costly Road to Autonomy

Tesla is clearly prioritising robotaxis and robots over short-term profit, and this quarter shows the price of that choice. Whether the Cybercab arrives on time will be the next big test. Watch the year-end deadline closely, because it will reveal whether Tesla’s autonomous future is arriving or slipping again.

Frequently Asked Questions

When can people buy a Cybercab?

Tesla says it is trying to deliver Cybercabs to customers by the end of 2026, but it has not confirmed pricing or ordering details.

Why did Tesla’s profit fall?

Spending on AI, Optimus robots and robotaxis rose sharply, while revenue stayed flat and regulatory credit income fell.

Is Optimus available to buy?

Not yet. Production has started, but Tesla has not announced consumer sales.

Is the Cybercab coming to Australia?

Tesla has not announced any plans, and local approval would be required.