Home / Business and Economy / Musk's Robot Promises Sour as Tesla Stock Plummets
Musk's Robot Promises Sour as Tesla Stock Plummets
23 Jul
Summary
- Tesla stock dropped 14% after reporting a $1.1 billion negative free cash flow.
- Elon Musk tempered expectations for Optimus humanoid robot's production.
- Musk questioned competitor robot demonstrations as preprogrammed or remote-controlled.
Tesla's stock experienced a sharp 14% decline on Thursday, following the company's report of a $1.1 billion negative free cash flow. This financial setback occurred despite a 26% year-over-year revenue increase.
During a recent earnings call, CEO Elon Musk notably adjusted his previous pronouncements regarding the Optimus humanoid robot. He emphasized the immense complexity of designing and scaling production for the robot, contrasting it with the relative ease of sourcing parts for Tesla vehicles. Musk suggested that many impressive robot demonstrations seen online are either preprogrammed or remote-controlled, asserting that Optimus aims to be the first capable of generalized tasks.
Musk's comments come as competitors like Figure and Boston Dynamics have showcased robots performing various actions. The Tesla CEO also addressed speculation about a potential Tesla-SpaceX merger, stating he could not comment at this time. Musk's personal net worth has also seen a substantial decrease, tied to the performance of both companies' stock prices.
