To The Moon

$Tesla Motors(TSLA)$ has begun producing “production-quality” Optimus humanoid robots at its Fremont, California factory. This milestone arrives alongside a sharp -43% decline in its Q3 2026 profit, underscoring the cost of its pivot toward AI, autonomy, and robotics. Optimus Enters Production TSLA said the robots coming off the Fremont line are its first production-quality Optimus units, marking a shift from earlier pilot builds and small test batches. The company said its current manufacturing process is “suitable for a commercial product,” although it has not disclosed production volumes, delivery dates, external-customer timelines, or pricing. The production site is symbolically significant: Fremont has been TSLA’s flagship US vehicle-assembly plant since it began building the Model S in 2012. Repurposing part of that EV manufacturing space for Optimus suggests TSLA views the robot as an extension of its existing automotive manufacturing expertise rather than a separate venture. In my May 2026 post, it’s already planned that TSLA will manufacture Optimus’s shell only; while $SpaceX(SPCX)$ retain the valuable IP of Optimus, the ‘brain’. Click here ! for details. Musk Down-play Expectations This time round, CEO Musk pre-empted the public and described the current phase as “early production”. He further cautioned that production ramp will be slow & somewhat bumpy because it is such a radically new product. He said roughly 10,000 things must go right for robot production, with progress limited by the slowest or least fortunate bottleneck. Despite the caution, again Musk claimed TSLA could eventually produce 20,000 Optimus robots per week by the end of 2027. He also said design refinements remain necessary to ensure the robots are safe, reliable, and durable, while substantial AI work is still required before they can handle open-ended tasks. Musk indicated that many production issues should be resolved around the end of 2027, implying that 2026 is only the opening phase of a ramp that may not reach reliable, high-volume output until 2027. If there is one thing that Musk is good at, it is telling a very convincing story, almost euphoric, stirring optimism. It is only when one digs deeper, the actual delayed timeframe emerges. Q3 2026 Rising spend vs Falling profit. TSLA released its Q3 2026 earnings on Wed, 21 Oct 2026, after market closes. Net income (GAAP) came in at $787 million, down -43% YoY, from $1.37 billion in Q3 2025. The decline reflected higher spending on (i) Optimus, (ii) AI, and (iii) autonomous-driving development, along with (iv) lower regulatory-credit sales. Total revenue was $28.04 billion, slightly below the $28.09 billion recorded in Q3 2025 and about -$200 million lower than Q2 2026’s $28.23 billion. Revenue was essentially flat YoY, while expenses rose as TSLA accelerated its investments in AI infrastructure & humanoid robotics. Earnings per share (GAAP) came in at $0.22, down -44% YoY from Q3 2025’s $0.39. Operating Income fell by -56% YoY to $718 Million (down from $1.62B) due to a +39% spike in operating expenses, driven by heavy investments in AI and the Optimus robot. EV Remains Core TSLA’s automotive business remained the primary revenue driver, with EV sales flat YoY at $20 billion. For Q3 2026, TSLA delivered 486,532 EVs; about +6,000 more than previous quarter but fewer than a year earlier. Solar and Energy-storage revenue fell -16% YoY to $2.8 billion, that the car maker attributed to tariff-related customer refunds. This is a ‘surprise’ for this revenue stream that has been growing for the past 3 of 4 quarters. In contrast, the services business, including Full Self-Driving (FSD) subscriptions grew +33% YoY to $4.6 billion and generated a record $734 million in gross profit. FSD Timeline Slips Again TSLA executives - (CEO Musk, CFO Vaibhav Taneja, and AI software VP Ashok Elluswamy), continued to remain bullish on FSD. This as timeline for consumer access to unsupervised driving has been delayed again. Today, TSLA owners can subscribe to a supervised version that requires the driver to remain attentive and ready to intervene. Elluswamy said TSLA expects around Q2 2027 to enable some of the first customer vehicles to join the robotaxi fleet through a software update that would allow unsupervised driving. (** note: again TSLA has not qualified nor defined what ‘unsupervised’ means) That would represent Level 4-style autonomy, but it is later than Musk’s April statement that the unsupervised version would “probably” arrive in Q4 2026. Is TSLA’s FSD really 100% safe ? Maybe investors would like to believe that TSLA’s Level 4 unsupervised FSD; after almost 8 years of delay. However, the latest incident on 13 Oct 2026 where California Highway Patrol (CHP) Solano officers responding to a fatal accident on the I-80 when a TSLA on FSD, slammed into the accident scene - seriously injuring the 2 officers. This, despite the CHP closed 4 lanes of the Interstate and diverted traffic to a slow lane. Would you put your life in the hands of Musk’s TSLA’s FSD and trust it 100% to ferry you to the destination unscathed ? Optimus Matters The Optimus announcement gives TSLA a tangible milestone at a time when its (a) core EV business faces slowing growth and (b) vehicle margins are under pressure. It reinforces the company’s argument that AI, robotics, and autonomy, not just EVs will drive its next phase of valuation. Musk has long argued that a general-purpose humanoid robot capable of working in factories, warehouses, and eventually homes could become a market larger than the entire auto industry. Whether that outcome materializes, TSLA is now treating Optimus as a near-term manufacturing priority rather than a distant research project. The central tension is TSLA is asking investors to fund a capital-intensive transition before the new businesses generate meaningful revenue. Optimus production proves engineering progress, but until TSLA discloses volumes, customers, pricing, and a credible path to profitability, the robot remains a strategic promise rather than a financial engine. Technical Analysis. Last but not least, looking at TSLA technical indicators of Simple moving averages, MACD and RSI should provide an indication where the stock is heading next. Simple Moving Average (SMA). On 22 Oct 2026, TSLA’s intraday price was $381.23 per share. This is higher than its SMA of (a) 20-day ($370.19) and (b) 50-day ($363.26) and lower than (c) 200-day SMA ($386.68). This suggests that TSLA is recovering within a still-weaker longer-term trend rather than displaying a fully bullish moving-average structure. The death cross formation on 9 Apr 2026, has not been reversed by a golden cross. A sustained move above $386.68 would strengthen the recovery case, while a fall below $370.19 would weaken the near-term setup and bring $363.26 into focus. MACD. Both MACD line (3.39) and Signal line (2.90) are above the Zero line, confrming that overall market control is bullish and market momentum remains positively aligned. With the MACD line above the Signal line, it reflects a bullish crossover signal and showing a recent buying price momentum is outpacing longer-term average momentum, confirming active buying pressure. A positive divergence (+0.48) suggests that upward momentum is expanding rather than contracting. RSI. The 14-day RSI 56.48 places TSLA firmly in neutral-to-bullish territory, indicating that TSLA has ample room to run upward without being immediately constrained by overbought conditions. My viewpoints: (mine only) TSLA’s Q3 results capture a company deliberately trading near-term earnings for a long-term identity. It is no longer simply defending its position as an EV maker but attempting to convert automotive-scale manufacturing into a platform for embodied AI. The risk is that Optimus and unsupervised self-driving tech will take longer to commercialize than expected. The opportunity is that success in either area gives TSLA new revenue sources beyond the cyclical economics of car sales. Would a shrewd investor just focus on Optimus’s potential given that TSLA’s FSD autonomous driving has ‘unofficially’ already lost to Waymo, domestically & internationally ? Remember to check out my other posts. (See below). Help to Repost ok, Thanks. Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks. GOOG, NVDA and Case for S&P 500 ETF ! VOO - Buffett's Risky winning ETF bet ? Buy ? CRWV - Neoclouds are down. Buy or Wait ? Do you think you are willing to put your life in the hands of TSLA’s self driving app ? Do you think TSLA’s Optimus robots is a better bet than its Full Self Driving function ? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents