Tesla bets big on robotics

Summary

Steve Westly, former Tesla board member and founder of Westly Group, joins CNBC to discuss Tesla's latest earnings and its strategic shift toward robotics. He says Tesla's auto business is under pressure from declining sales and rising EV competition, while the energy division is growing strongly on AI data center power demand. Westly views Optimus as impressive but a tall order given well-funded humanoid robotics competition, and he says Tesla's FSD rollout still lags Waymo.

• Tesla reported declining revenue, auto sales, and profit with rising competition.
• BYD outsold Tesla for the first time in EVs; VW and Hyundai push lower-cost models.
• Tesla's energy division grew 27%, helped by utility demand for AI data centers.
• Tesla is ending Model S/X production and doubling down on Optimus robots.
• Westly says Optimus faces tough competition from Figure AI and Boston Dynamics.
• Tesla has FSD approval in only two cities versus Waymo's broader expansion.
• Westly says Musk may retain Midas touch with SpaceX IPO but Tesla robotics is a tall order.