Tesla's Q2 2025 revenue fell 12% to $22.5B, its worst drop in a decade. Elon Musk blamed the end of U.S. EV tax credits and China’s competition, urging investors to focus on AI, robotics, and chips. He sees Tesla’s future in humanoid robots, robotaxis, and custom AI chips.
Musk wants Tesla to become the best global firm through robots, AI, and chips
The revenue of Tesla plunged by 12 percent in the second quarter of 2025, generating an amount of USD 22.5 billion.
This is the biggest decline Tesla has faced in almost 10 years.
In response, Elon Musk warned that the shareholders of the company should prepare for a few more difficult quarters ahead.
Musk said that the upcoming end of U.S. electric vehicles tax credits and increasing competition from China are the reasons for this poor show.
However, Musk is optimistic about the company’s bright future and said the investors should not put much emphasis on EV business, which is struggling.
Instead, he urged them to focus on the new areas of Tesla. This include artificial intelligence (AI), autonomous driving, humanoid robots, and computer chips that are custom made.
Musk said he seeks to make Tesla a leader in robotics and AI than just being a car manufacturer.
One of the most talked-about projects is the humanoid robot named “Optimus.”
Musk believes this robot could become even more valuable than Tesla’s cars in the future.
A prototype of Optimus is already working at Tesla’s Hollywood diner, serving popcorn.
Tesla aims to produce 100,000 robots per month by 2030.
Autonomous driving is another key focus. Tesla recently started testing a robotaxi service in Austin, Texas, within limited areas.
The company plans to expand the service to cities like San Francisco, Phoenix, Las Vegas, and other areas by the end of the year, though it still needs government approvals.
Meanwhile, a new “AI5” chip could be used to develop self-driving efforts. Musk said this could fuel Tesla’s rise as the leader in real world AI.
He has also said that US government could restrict Tesla’s chips to safeguard national interests.
Tesla is now training its AI systems to enhance the performances of its Dojo supercomputer.
However, experts have formed mixed opinions on Tesla. Some believe Tesla is likely to struggle, while others say that its focus on tech will enable it to succeed.
Musk has also said that Tesla’s future depends on robots, AI, and chips, and these things could make it the most precious firm of the world.
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