Tesla is already producing its Optimus units for its own use, but when the humanoid robot actually starts shipping to consumers, it will likely look like a completely different product. This was, at least, hinted at by Elon Musk during the second quarter earnings call.

Optimus design iterations

When Optimus was initially announced during Tesla’s first AI Day event in 2021, the company only had a static model of the humanoid robot and a literal person in a robot suit dancing on the stage. Over the years, Tesla has showcased increasingly refined versions of its Optimus robot, culminating in V2, which is currently being produced today. 

During the Q1 2025 All-Hands Meeting, CEO Elon Musk told Tesla employees that the company will try to produce its first “legion” of Optimus robots this year. 

At the time, expectations seemed to suggest that Tesla would go ahead and mass-produce Optimus V2 with some refinements, such as hands that have 22 degrees of freedom. Such speculations seemed reasonable since Optimus V2 already moves very well, and its design already looked refined compared to humanoid robots made by other companies. 

Optimus V3 design

During the second quarter 2025 earnings call, Elon Musk clarified that when Optimus enters mass production, the humanoid robot will feature its Version 3 design. This means that the Optimus robots that will be delivered to Tesla’s first consumers will feature a different design compared to the Optimus V2 robots that have been in use by the company since 2023.

Elon Musk seems quite optimistic about Optimus V3’s potential, stating that the design of the humanoid robot would be quite exquisite. He also echoed his previous sentiments about Optimus likely becoming Tesla’s biggest product in the long run.

“The Optimus 3 design, as I mentioned earlier, is, I think, finding the right design. There will be further optimizations, but there are, I think, no fundamental changes that are needed for the Optimus 3 design. It has all the degrees of freedom that you really want or need,” Musk said, later noting that Optimus 3’s design is “exquisite.”

Tesla is yet to tease the design or overall look of Optimus V3, though one could assume that the robot will likely resemble the sleek, humanlike concept that the company showcased in 2021. If Optimus V3 does feature such a look, it would undoubtedly become one of the most futuristic products in the market, even in the coming years.

Tesla is reportedly preparing to launch a Robotaxi pilot program in the Bay Area this weekend, with invites to a select number of customers reportedly being sent out as early as this Friday.

The update was shared in a report from Insider, which cited an internal memo from the electric vehicle maker.

New Robotaxi service launch

According to Insider, the Robotaxi service in the Bay Area is set to launch as soon as Friday. Thus, some Tesla owners in the area should receive invites to use the driverless ride-hailing service. Similar to the Austin pilot, the Robotaxi rides will reportedly be a paid service.

The publication noted that the Robotaxi service’s geofence in its Bay Area launch will be quite large, as it will include Marin, much of the East Bay, San Francisco, and San Jose. This is not surprising as California has long been saturated with Teslas, and it is home to several of the electric vehicle maker’s key facilities.

Unlike the Austin pilot, the Tesla Robotaxi service’s pilot in the Bay Area will use safety drivers seated in the driver’s seat. These drivers will be able to manually take over using the steering wheel and brakes as needed. As per a spokesperson from the California DMV, the agency recently met with Tesla but the company is yet to submit a formal application to operate fully driverless cars. 

Tesla Robotaxi expansion

Interestingly enough, Tesla did tease the release of its Robotaxi service to the Bay Area in its second quarter earnings call. While discussing the service, Tesla VP of Autopilot/AI Software Ashok Elluswamy mentioned that the company will initially be rolling out Robotaxis with safety drivers in the San Francisco Bay Area. He did, however, also highlight that the electric vehicle maker is working hard to get government permission to release the service for consumers.

“The next thing to expand would be in the San Francisco Bay Area. We are working with the government to get approval here and, in the meanwhile, launch the service without the person in the driver seat just to expedite and while we wait for regulatory approval,” he stated.

The United States’ electric vehicle tax credit is coming to an end at the end of the third quarter. Tesla, the country’s leading electric vehicle maker, is ready to meet this challenge with a rather simple but clever counter. 

Tesla executives outlined this strategy in the recently held Q2 2025 earnings call.

End of the US EV tax credit

While Elon Musk has always maintained that he prefers a market with no EV tax credit, he also emphasized that he supports the rollback of any incentives given to the oil and gas industry. The Trump administration has not done this so far, instead focusing on the expiration of the $7,500 EV tax credit at the end of the third quarter.

Tesla has been going all-in on encouraging customers to purchase their vehicles in Q3 to take advantage of lower prices. The company has also implemented a series of incentives across all its offerings, from the Cybertruck to the Model 3. This, however, is not all, as the company seems to be preparing a longer-term solution to the expiration of the EV tax credit.

Affordable variants

During the Q2 2025 earnings call, Vice President of Vehicle Engineering Lars Moray stated that Tesla really did start the production of more affordable models in June. Quality builds of these vehicles are being ramped this quarter, with the goal of optimizing production over the remaining months of the year. If Tesla is successful, these models will be available for everyone in Q4. 

“We started production in June, and we’re ramping quality builds and things around the quarter. And given that we started in North America and our goal is to maximize production with a higher rate. So starting Q3, we’re going to keep pushing hard on our current models to avoid complexity… We’ll be ready with new, more affordable models available for everyone in Q4.,” Moravy stated. 

These comments suggest that Tesla should be able to offer vehicles that are competitively priced even after the EV tax credit has been phased out. Interestingly enough, previous comments from Tesla executives have mentioned that these more affordable models would resemble the company’s current lineup. This suggests that the more affordable models may indeed be variations of the Model Y and Model 3, but offered at a lower price.