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Tesla kicked off earnings season — at least for this sector — and the shareholder letter, along with Elon Musk’s remarks during the conference call, provided some pretty incredible disclosures I imagine have some investors concerned, or at least puzzled.
Tesla has backed off previous promises to reach “volume production” of the Cybercab, Tesla Semi, and Megapack 3 in 2026. And while the company has publicly touted expansions of its Tesla Robotaxi service into new cities in Florida and Texas, the quarter-over-quarter data shows a drop in paid robotaxi miles.
Senior reporter Sean O’Kane took a closer look at a graph shared in Tesla’s shareholder letter. At a passing glance, the chart appears to show steady growth in paid robotaxi rides between August 2025 and June 2026, O’Kane notes. But the numbers displayed are cumulative, and when broken down by quarter, they show that Tesla’s Robotaxi fleet of Model Y SUVs carrying paying passengers covered around 1.1 million miles in the first quarter. That fell to roughly 700,000 miles in the second quarter, a decline of about 36%.
Musk also disclosed during the call that Tesla needs to accumulate driving data specific to the Cybercab before it can put large numbers of the vehicles on the road. That isn’t terribly surprising; the Cybercab is new, after all. But the reason got my attention. He explained that Tesla has to accumulate miles using Cybercabs retrofitted with steering wheels and accelerator and braking pedals so it can calibrate to the Cybercab chassis.
This marks a change from the company’s previous claims. For years, Tesla has said its fleet of nearly 10 million customer cars has been collecting data that could be used to train its advanced driver-assistance system, Full Self-Driving (Supervised), and future robotaxis. Musk’s explanation suggests there is a misalignment between that fleet data and how it’s applied to the Cybercab.
On the financial front, Tesla’s Q2 earnings show a company plowing money into its next generation of products (CapEx has doubled, and the company is back in negative free cash flow territory). And even though revenue is up, the boost wasn’t enough to offset the cost of doing business. The company’s net income fell 5% year over year.
Deals!
Image Credits:Bryce Durbin
Travis Kalanick burst back onto the robotics and mobility scene earlier this year with Atoms — a rebranded holding company atop his ghost kitchen project — and a deal to acquire Anthony Levandowski’s industrial automation startup, Pronto. Now the Uber co-founder and former CEO has $1.7 billion in capital to play with. VC giant Andreessen Horowitz led the round with participation from Bain Capital, Fifth Wall, and Uber. Ben Horowitz will join the company’s board following the investment.
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