Tesla AI Strategy: Elon Musk on FSD, Optimus Robots, Dojo Supercomputer, Robotaxi Developments

Tesla is far more than an electric vehicle (EV) and energy storage company. It also aspires to be one of the world's leading artificial intelligence (AI) businesses. But how is Tesla developing AI systems with human sustainability in mind? And how might CEO Elon Musk's bumpy relationship with U.S. President Donald Trump potentially challenge those AI efforts? Here are some clues...

First, some background: Hyperscale cloud companies such as Microsoft (working with OpenAI), Google (aligned with Anthropic) and Amazon Web Services (also working with Anthropic) often dominate the artificial intelligence (AI) conversation among CIOs and futurists. Meanwhile, hardware companies such as NVIDIA, AMD, Dell, Hewlett Packard Enterprise (HPE), IBM, Intel and Lenovo have focused on supercomputer AI opportunities.

Still, some pundits believe Tesla ranks among the world's top AI companies. Among the reasons: Sensors in Tesla's cars provide a live, real-world network for data gathering. And Tesla's back-end infrastructure -- including homegrown supercomputer technology -- can gather, manage and analyze all of that data.

AI and Sustainability: Admittedly, AI is both a blessing and a burden for the world's sustainability efforts. While some AI applications allow scientists, universities and businesses to study climate change, the overall AI movement also requires heavy energy use. And of course, some pundits worry AI and robots
could ultimately threaten humanity.

So how is Tesla developing AI systems with human sustainability in mind? On the R&D front, Tesla's major AI investments involve:

• Full self-driving (FSD) cars, trucks, robotaxi options and autonomous vehicles.
• Optimus robots.

Still, there have also been some high-profile setbacks. One prime example: Musk abandoned a Tesla supercomputer project called Dojo, Bloomberg reported in August 2025, though Tesla is marching forward with key chip developments, Reuters added.

Also of note: Musk also leads X (formerly Twitter) and xAI -- a startup that's seeking to compete against OpenAI, Anthropic and other generative AI companies. Musk watchers wonder if synergies between xAI (maker of Grok) and Tesla will emerge. And those synergies, in turn, may help to address such markets as renewable energy, power management and plenty more.

Amid that backdrop, here is a regularly updated timeline of developments...

Tesla AI and Business Strategy: March 2026 Updates

• Alliance - Grid Energy Costs: Google, Tesla and several partners have launched Utilize, an effort to "increase grid utilization—lowering energy costs, enabling growth, and accelerating deployment of proven distributed capacity solutions."
• United Kingdom Energy Services: Tesla Energy Ventures has earned a license from Ofgem, the UK energy regulator, to supply electricity directly to households and businesses across England, Wales, and Scotland, Electrek reported.
• AI Strategy: Tesla and xAI announced Digital Optimus (knicknamed Macrohard), a joint AI agent project that's designed to automate complex workflows.
• Partnership - Energy Storage: LG Energy Solution will produce $4.3 billion worth of batteries in Michigan for Tesla’s energy storage systems business, Bloomberg reported.
• AI Infrastructure: Tesla and SpaceX -- both led by Elon Musk -- will continue ordering Nvidia chips in order to scale their respective businesses, Reuters reported. But Tesla's Terafab project to make AI ​chips also is launching this month, Reuters noted.
• Chip Strategy: Elon Musk said his Terafab project — a grand plan to eventually manufacture his own chips for robotics, artificial intelligence and space data centers — will be built in Austin, Texas, and jointly run by Tesla and SpaceX, Bloomberg reported.
• Solar Infrastructure: Tesla is seeking to purchase roughly $2.9 billion worth of solar manufacturing equipment from Chinese suppliers amid solar market challenges in the United States, Reuters reported.

Tesla AI and Business Strategy: February 2026 Updates

• Grok AI Assistant: Tesla has rolled out its Grok AI assistant to Australia and New Zealand, embedding the conversational xAI chatbot directly into compatible vehicles via an over-the-air update, Teslarati reported.
• Robotaxi Safety Concerns: Tesla’s Austin, Texas robotaxis have been involved in 14 crashes since June 2025, with five accidents occurring in December 2025 and January 2026, raising concerns that the autonomously driven vehicle may be more accident-prone than humans, SeekingAlpha reported.
• AI Executive Departure: Raj Jegannathan, a Tesla VP focused on IT and AI infrastructure, has exited the EV automaker, according to a LinkedIn update.
• China Research Center: Tesla has launched an AI training center in China to improve its self-driving software amid increased competition in the country’s EV market, Tech In Asia reported. Related: Tesla AI strategy milestones and challenges.
• Solar Business Expansion: Tesla is evaluating New York, Arizona and Idaho for locations to potentially expand solar cell manufacturing activity, Bloomberg reported. Tesla also is accelerating its solar team hiring, according to Linkedin posts by Seth Winger, Tesla senior manager for solar products engineering.

Tesla AI and Business Strategy: January 2026 Updates

• Self-Driving Expansion: Tesla hopes to get supervised self-driving approval in Europe and China sometime around February 2026, Musk said.
• Robot Business: Tesla in Q1 of 2026 plans to unveil the Gen 3 version of Optimus, which features an updated hand design. Gen 3 is the first Tesla design meant for mass production. And production is expected to start sometime in 2026.
• Energy Business: Tesla's energy generation and storage revenue reached $3.1 billion in 2025, up 25% from 2024, the company said.
• AI Chips: Tesla's AI5 chip design is "almost done and AI6 is in early stages, but there will be AI7, AI8, AI9 … aiming for a 9 month design cycle," Musk wrote on X.
• Dojo Resurfaces: Musk said the carmaker will resume work on the Dojo3 project after making progress on the design of its AI5 chip, Bloomberg reported.
• Full Self-Driving Service: Tesla will stop selling full self-driving (FSD) after February 14, and will shift FSD to a monthly subscription service, CEO Elon Musk wrote on X.
• Solar Technology Launch: Tesla has updated its online configurator with a new solar panel heavily emphasizing its U.S. manufacturing at Gigafactory New York, Electrek reported. It’s a surprising new product launch for a business that Tesla has seemingly been dismantling for the last two years, the report said.

Tesla AI Strategy: December 2025 Updates

• Less Green: Elon Musk has erased the word "sustainable" from Tesla's mission statement. On X, Musk wrote: "Am changing the Tesla mission wording from: Sustainable Abundance To Amazing Abundance,” Electrek reported.
• Employee Departures: Sunday Robotics has hired several former Tesla staff members to work on its Memo home robot, Business Insider reported.

Tesla AI Strategy: November 2025 Updates

• Energy Business Growth: Tesla’s energy generation and storage business now represents 12.1% of company revenue, expanding 27.1% year-to-date and rapidly becoming the company’s most scalable segment, Investing.com reported.
• AI Chips: Tesla is close to finishing its AI5 chip, has started work on its AI6 chip, and is aiming to bring a new chip design to volume production every 12 months, CEO Elon Musk said on X. (Source: SeekingAlpha)
• Robotaxi Services: Tesla has obtained a permit to operate a ride-hailing service in Arizona. Separately, Amazon's Zoox will start giving free robotaxi rides through parts of San Francisco as it strives to challenge Waymo's early market lead. (Sources: CNBC, Associated Press)
• Hard Work Ahead: If you work on Tesla's AI teams, then 2026 will be the "hardest year" of your life, Tesla VP of AI Software Ashok Elluswamy said during an all-hands-on meeting in October, Business Insider reported.
• Customer Payments?: Tesla customers could be paid $100 to $200 a month if they allow Tesla to perform AI inference workloads when the electric vehicles (EVs) are not in use, CEO Elon Musk suggested, according to SeekingAlpha.
• AI Chip Factory?: Musk said Tesla probably will have to build "a gigantic chip fab" to make AI chips and publicly mused the EV maker could work with Intel, Reuters reported.
• Elon Musk Pay Package: Tesla shareholders approved a $1 trillion pay plan for CEO Elon Musk. Still, the pay package requires Tesla to hit aggressive financial goals -- though Musk can earn more than $50 billion by hitting several reasonably attainable goals, CNBC reported.
• Potential xAI Investment: Tesla's board will continue to explore potential investments in xAI, a generative AI company that Musk is building to counter OpenAI, Anthropic and others, Business Insider reported.

More: Continue to next page for earlier Tesla AI milestones, challenges, setbacks and news updates.