Tesla Targets 3M Capacity, Expands Robotaxi Rollout

Tesla reported record Q3 revenue of $28.1 billion but saw EPS fall to $0.50 as operating expenses, tariffs (about $400 million) and R&D including AI work weighed on margins. CEO Elon Musk said Tesla expects to remove onboard safety drivers from Robotaxis in much of Austin by year‑end and plans to expand Robotaxi service to roughly 8–10 U.S. metro areas. Tesla is targeting an annualized production capacity near 3 million vehicles within 24 months, tying the ramp to progress on unsupervised full self‑driving and the CyberCab, a steering‑wheel‑ and pedal‑free model with production timing variously reported around Q2 next year or Q2 2026. Management said capital spending will rise substantially in 2026 to fund both vehicle and AI initiatives and warned of headwinds from the end of EV tax credits and tariff impacts. Tesla also accelerated its AI/robotics push, announcing Optimus Version 3 for a Q1 2026 reveal and early‑2026 prototypes while stressing safety checks before wider deployment.