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 ranks as 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 relationship with U.S. President Donald Trump influence 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 may rank among the world's top AI company. 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.
• Dojo, a supercomputer that went into production in August 2023.

Here is a regularly updated timeline of developments...

Tesla AI Strategy: March 2025 Updates

• Robotaxi Progress?: Tesla secured a permit from the California Public Utilities Commission (CPUC) to operate a transportation service in the state, SeekingAlpha reported, marking the first step in a lengthy regulatory process that could ultimately pave the way for the company to launch a robotaxi service there.

Tesla AI Strategy: February 2025 Updates

• Ride Hailing Service: Tesla is seeking approval to offer ride-hailing services in California, Bloomberg reported. The effort would potentially counter Uber, Lift and the Waymo self-driving service (owned by Google parent Alphabet).
• European Sales Plummet: Tesla new vehicle sales fell 45% across Europe in January, according the European Automobile Manufacturers' Association (ACEA). Critics say European customers may be boycotting Tesla because of Musk's close relationship with the Trump administration, CBS News reported.
  

Tesla AI Strategy: January 2025 Updates

• Energy Storage: Tesla's energy storage deployments reached an all-time high in Q4, but declined sequentially because of supply constraints, CFO Vaibhav Taneja said during the company's earnings call. To scale supplies, Tesla is building a Megafactory in Shanghai. As a result, the company expects at least 50% growth in deployments year-over-year in 2025, he added.
• Full Self Driving Service Launch: Tesla plans to launch Full Self Driving as a paid service in Austin, Texas in June 2025, Musk said during an earnings call.
• Optimus Robots: Tesla is striving to build 10,000 Optimus robots in 2025, Musk said during an earnings call. "Will we succeed in building 10,000 exactly by the end of December this year? Probably not, but will we succeed in making several thousand? Yes, I think we will," Musk said. Moreover, he predicted: "It doesn't take very many years before we're making 100 million of these things a year." The robots will be able to do everything from play the piano to thread a needle, he predicted.
• Tesla Probe: Tesla is facing a probe by the U.S. traffic safety regulator over issues related to the EV maker's "Actually Smart Summon" feature, SeekingAlpha reported.
• Electric Vehicle Unit Sales: Tesla's annual EV unit sales fell 1.1% in 2024 compared to 2023. The drop represents Tesla's first annual unit sales decline in a dozen years, AP reported. Still, Tesla’s global vehicle sales rose 2.3% in the final quarter of 2024 thanks to 0% financing, free charging and low-priced leases, the AP added.

Tesla AI Strategy: December 2024 Updates

• Tesla Valuation and Trump Presidency: Tesla's stock hit a new record on December 13, 2024 amid a media report that the Trump transition team wants to scrap an order that requires automakers to report crashes involving self-driving systems, SeekingAlpha reported.
• Lawsuit - OpenAI Responds to Elon Musk: OpenAI has publicly responded to Elon Musk's lawsuit against the company, alleging that Musk wanted OpenAI to be a for-profit company -- which runs counter to Musk's lawsuit against the ChatGPI software maker.

Tesla AI Strategy: November 2024 Updates

• xAI - Startup Valuation: xAI has raised $5 billion in funding at a $50 billion valuation—more than twice what it was valued at several months ago, The Wall Street Journal reported. xAI is Elon Musk's emerging rival to OpenAI and Anthropic.
• Supercharger Interoperability Limits: Only about 100 of Tesla's 2,500 or so U.S. Supercharger stations feature the Magic Dock to support third-party EV charging, according to a Bloomberg Green analysis.
• Second Trump Presidency: Musk, a close advisor to Trump, has vowed to scrutinize and cut various federal government spending. Critics note that SpaceX, a Musk-led company, earns billions from the U.S. federal government. Musk spent heavily on Trump's election campaign after feuding with the Biden Administration on multiple fronts. We'll be watching to see just how involved Trump becomes with the U.S. federal government.
• AI Patent - Autonomous Driving: Tesla was awarded a patent for creating a system and method for adapting a neural network model on a hardware platform, SeekingAlpha reported. The patent may set the stage for Tesla to license its autonomous driving technology to third-parties.
  

Tesla AI Strategy: October 2024 Updates

• Earnings: The EV car maker announced stronger-than-expected Q3 2024 earnings. Among the upside surprises: The Cybertruck achieved a positive gross margin for the first time, CNBC noted. And Tesla's energy storage business is "growing like wildfire, with strong demand for both Megapack and Powerwall," Musk asserted during an earnings call with Wall Street analysts. Still, Tesla apparently did not mention its rooftop solar business during the earnings call.
• Robotaxi Event - Tepic Reaction: Analysts were not impressed with Tesla's Robotaxi event on October 10, and the company's stock fell sharply, SeekingAlpha reported.
• Robotaxi Event Preview: The Tesla Robotaxi event is scheduled for October 10. Gene Munster, managing partner at Deepwater Asset Management, believes the company will unveil a Robovan, a Robotaxi, and a $25,000 EV that investors have been thinking about for several years, Teslarati reported.
• Tesla Loses CIO: Tesla CIO Nagesh Saldi is leaving the EV maker, Bloomberg reported. Saldi is known for his focus on Tesla's data center strategy -- which ultimately powers the company's self-driving, robotics and robotaxi software efforts.
  

Tesla AI Strategy: September 2024 Updates

• Partnership Chatter: Elon Musk denied a report that two of his companies -- Tesla and the xAI startup -- have held revenue and AI sharing-related talks.
• Tesla Robotaxi Strategy: Tesla will unveil its Robotaxi design during an October 10 event at a Warner Bros. Studio in Burbank, California, SeekingAlpha reported.
• Talent: Uber Technologies has hired former Tesla Supercharger network executive Rebecca Tinucci as global head of sustainability, she confirmed in a LinkedIn post.

Tesla AI Strategy: July 2024 Updates

• Tesla Robotaxi - More Delay Details: Elon Musk has requested "an important design change to the front of the robotaxi model, SeekingAlpha reported. The request forced Tesla to delay its robotaxi reveal, originally scheduled for August 2024. A new reveal date has not been announced, though speculation suggests Tesla is targeting October 2024. Related: See our Tesla AI strategy timeline.
• Robotaxi Delayed?: Tesla is postponing its planned robotaxi unveiling to October 2024. The event had been slated for August 8, 2024. The delay will "allow teams working on the project more time to build additional prototypes," Bloomberg reported.
• Tesla Robots: Tesla's new Optimus design will be complete before 2025, CEO Elon Musk said on X.

Tesla AI Strategy: June 2024 Updates

• Dell: The PC and server giant, according to Michael Dell, is building a "Dell AI factory with Nvidia to power Grok for xAI. Elon Musk added: "To be precise, Dell is assembling half of the racks that are going into the supercomputer that xAI is building"
• AI Lawsuit Dropped: Musk dropped his lawsuit against OpenAI and co-founders Sam Altman and Greg Brockman, CNBC reported. In the suit, Musk alleged that OpenAI abandoned its social-good mission in order to focus on revenue opportunities.
• Elon Musk vs. Apple-OpenAI: An Apple-OpenAI partnership drew criticism from Musk, who alleges the relationship could trigger security risks on Apple's hardware. Musk is therefore threatening to ban Apple products within his companies -- which include Tesla, X (formerly Twitter) and SpaceX, among others. Musk, an early OpenAI investor, alleges that OpenAI lost its way by prioritizing revenues over social good. Amid that backdrop, Musk is building an OpenAI rival called xAI.
• AI Chip Orders: After reports stated that Musk routed Nvidia AI chips from Tesla to X (formerly Twitter), Musk wrote on X: "Of the roughly $10B in AI-related expenditures I said Tesla would make this year, about half is internal, primarily the Tesla-designed AI inference computer and sensors present in all of our cars, plus Dojo. For building the AI training superclusters, NVidia hardware is about 2/3 of the cost. My current best guess for Nvidia purchases by Tesla are $3B to $4B this year."

AI Strategy: May 2024 Updates

• China Data Centers: Tesla has been developing plans for a data center in China to train the algorithm needed for more fully autonomous vehicles, Reuters reported. Musk previously expressed opposition to a China-based data center, arguing that data transfer to the United States was the most efficient option, the report asserted. Meanwhile, Tesla CEO Elon Musk has been highly critical of Reuters' media coverage.

More: Continue to next page for more details about Tesla's AI capabilities, Optimus Robots, avoiding a Terminator Judgment Day outcome, and the Dojo Supercomputer efforts...