Tesla Earnings Drop as Musk Bets Big on Optimus (Full Transcript)

[00:00:00] Speaker 1: A lot of people have been searching for Tesla recently, and that's because on Wednesday evening, the company reported earnings, and they reported a steep decline in annual profits, partly as a result of a decline in their car sales. Tesla has faced increased competition from places like China, they've faced the loss of the electric vehicle tax credit in the United States, and people have not been buying the cars, partly as a result of CEO Elon Musk's political activity. For those wondering what this means for Tesla cars, Elon Musk made a surprise announcement, they will be discontinuing the X and S models, turning that factory space in California into making the humanoid robots optimists. This is part of Elon Musk's futuristic plan to turn Tesla from a car company to one focused on AI and robotics. Think robo-taxis and an optimist robot who can do everything from clean your house to perform surgery. Elon Musk has claimed that up to 80% of Tesla's value will eventually come from optimists. But the humanoid robot industry is way more complicated and competitive than the car industry. There's another incentive for Elon Musk, if he wants to reach that $1 trillion dollar pay package that Tesla shareholders approved last year, he needs to deliver 1 million optimist robots in the next 10 years. So if you've been wondering about what's going on with Tesla, now you're looped in.