Tesla starts Optimus robot production as profit falls 43%

• Tesla began production of its Optimus robot in California.
• Third-quarter operating income fell 56% year over year to $718 million.
• Third-quarter revenue was roughly flat at $28.05 billion.
• Adjusted earnings per share were 48 cents, beating estimates.
• Company cited increased investment in AI and R&D for profit decline.

Tesla has commenced production of its Optimus robot at its California facility. The automaker reported a 56% year-over-year decrease in operating income to $718 million for the third quarter, falling short of Wall Street's $746.3 million estimate, while revenue remained largely unchanged at $28.05 billion. The company attributed the profit decline to increased investments in artificial intelligence and other research and development initiatives, alongside lower regulatory credit revenue and reduced gross profit from energy storage. Despite the profit dip, Tesla's adjusted earnings per share came in at 48 cents, surpassing the analyst consensus of 44 cents. Elon Musk also indicated his support for a potential merger between Tesla and SpaceX.