During Tesla’s fourth-quarter earnings call on Wednesday, CEO Elon Musk delivered a characteristically wide-ranging discussion that touched heavily on the company’s artificial intelligence ambitions, particularly around Full Self-Driving (FSD) technology and the Optimus humanoid robot. Musk addressed skepticism about his timeline predictions by referencing “The Boy Who Cried Wolf,” insisting that this time “there’s a damn wolf” in the form of Tesla’s self-driving capabilities.
Musk used a creative analogy to explain Tesla’s autonomous driving progress, comparing outdated perceptions of FSD to meeting someone as a toddler and assuming they’ll never grow up. He emphasized that the technology has matured significantly, stating: “It’s like, walks and talks” now. This defense comes after years of delayed promises regarding full autonomy.
The Tesla CEO made bold financial projections for the company’s Optimus humanoid robot, suggesting it could generate “north of $10 trillion in revenue” long-term. He justified potentially spending $500 billion on training compute for the robots, calling it “quite a good deal” given the revenue potential. Musk acknowledged uncertainty around Optimus timing, noting the company is “literally designing the train and the tracks and the station in real time.”
In a striking claim about Tesla’s AI capabilities, Musk asserted: “There is no company in the world that is as good at real-world AI as Tesla.” He claimed competitors are so far behind that he would “need a very big telescope to see them,” positioning Tesla as the undisputed leader in practical AI applications.
Musk also criticized Hollywood’s portrayal of innovation, emphasizing that manufacturing at scale is “100 times harder” than creating prototypes. He advocated for making manufacturing cool again in America, suggesting talented people should move from law and finance into manufacturing sectors. On the technical side, he defended Tesla’s vision-based approach to autonomy, joking that “humans drive without shooting lasers out of their eyes” to explain why LiDAR technology isn’t necessary for self-driving vehicles.
Key Quotes
Some of these things I’ve said for quite a long time, and I know people have said, ‘Well, Elon is the boy who cried wolf like several times.’ But I’m telling you, there’s a damn wolf this time, and you can drive it. In fact, it could drive you. It’s a self-driving wolf.
Elon Musk addressed criticism about repeatedly delaying Full Self-Driving releases, using humor to insist that Tesla’s autonomous driving technology has finally arrived and is ready for real-world use.
It’s one of those things where I think long term, Optimus will be — Optimus has the potential to be north of $10 trillion in revenue, like it’s really bananas.
Musk made an extraordinary financial projection for Tesla’s humanoid robot business, justifying massive investments in AI training compute and positioning Optimus as potentially more valuable than Tesla’s entire automotive business.
There is no company in the world that is as good at real-world AI as Tesla. I don’t even know who’s in second place. Like you say, like, who’s in the second place for real-world AI? I would need a very big telescope to see them.
The Tesla CEO made a bold claim about the company’s AI leadership, specifically emphasizing practical, real-world applications rather than theoretical or simulated AI capabilities, positioning Tesla far ahead of all competitors.
We have too much talent in law and finance in America, and there should be more of that talent in manufacturing.
Musk called for a fundamental shift in American career priorities, arguing that AI and advanced manufacturing require more talented workers and represent more valuable contributions to the economy than traditional professional services.
Our Take
Musk’s earnings call reveals a strategic repositioning of Tesla as an AI-first company rather than merely an electric vehicle manufacturer. The $10 trillion Optimus projection, while seemingly outlandish, reflects serious ambitions in general-purpose robotics—a market that could indeed dwarf automotive if humanoid robots achieve widespread adoption in manufacturing, healthcare, and domestic settings. His emphasis on “real-world AI” is particularly significant, as it distinguishes Tesla’s approach from companies focused on large language models or virtual applications. The massive compute investment discussions signal that AI development is becoming a capital-intensive arms race, favoring companies with deep pockets and vertical integration. However, Musk’s track record of overpromising on timelines—acknowledged in his “boy who cried wolf” reference—suggests investors should view these projections with healthy skepticism while recognizing Tesla’s genuine technical progress in autonomous systems.
Why This Matters
This earnings call reveals Tesla’s aggressive AI strategy at a critical moment for the autonomous vehicle and robotics industries. Musk’s $10 trillion revenue projection for Optimus represents one of the most ambitious claims in AI robotics history, signaling Tesla’s intention to dominate beyond automotive applications. The emphasis on “real-world AI” distinguishes Tesla’s approach from competitors focused on simulated environments or narrow applications.
The discussion highlights the massive capital requirements for AI development, with Musk casually mentioning $500 billion in potential training compute costs. This underscores how AI leadership increasingly depends on enormous financial resources, potentially consolidating power among well-funded companies. For the broader autonomous vehicle industry, Musk’s confidence about FSD maturity could pressure competitors to accelerate their timelines or risk being left behind. His call to redirect American talent from finance and law into manufacturing also reflects growing concerns about AI implementation requiring not just software innovation but scaled physical production capabilities. The earnings call essentially positions Tesla as an AI company that happens to make cars, rather than an automaker experimenting with AI.
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Source: https://www.businessinsider.com/elon-musk-tesla-stock-earnings-call-quotes-fsd-optimus-ai-2025-1