Overview
- Musk, in videos posted after Wednesday's earnings call, showed the Cybercab with no steering wheel or pedals rolling out of Giga Texas as production began.
- Tesla said the rollout will be cautious, with very slow initial output and a goal of operating in a dozen or so states by year-end that it does not expect to drive meaningful revenue in 2026.
- The company raised 2026 capital spending to more than $25 billion to fund autonomy, humanoid robots and in‑house chips and warned of negative free cash flow for the rest of 2026 after a $1.44 billion surplus in Q1.
- Musk said cars built with the older Hardware 3 computer cannot achieve unsupervised Full Self‑Driving without new computers and cameras and he floated city microfactories to handle large‑scale retrofits.
- Analysts welcomed the long‑term focus on robotaxis, Optimus and custom AI chips but flagged slower progress and the need to prove safety under regulators’ scrutiny as rivals like Waymo expand driverless services.