Musk delays release of Roadster, Optimus and unsupervised FSD, as Tesla margins jump

Tesla CEO Elon Musk has announced further delays in the release of the highly anticipated new Roadster, the company’s full unsupervised Full Self-Driving (FSD) software, and the Optimus robot. These postponements mark yet another setback for Tesla, which has a history of pushing back product launches. Musk indicated that the Roadster’s unveiling might occur within a month but emphasised the need for extensive testing to avoid demonstration failures. Meanwhile, Tesla continues to face increased competition from Chinese manufacturers like BYD, which are expanding their EV offerings with more affordable models. Despite these delays, Tesla reported mixed financial results for the first quarter, with revenues falling short of expectations at $22.39 billion. However, the company’s profit margins improved, leading to earnings per share surpassing analyst forecasts. Musk revealed plans for a substantial rise in capital expenditure, projecting $25 billion in 2026—three times the 2025 level—primarily to fund FSD development and robotics projects. This shift reflects Tesla’s broader ambition to evolve beyond electric vehicles into artificial intelligence and automated systems. A significant concern for current Tesla owners is the revelation that vehicles equipped with Hardware 3 are incapable of supporting the promised unsupervised FSD. Musk explained that the older hardware lacks sufficient memory bandwidth, a critical component for AI-driven autonomous driving, and that only the forthcoming Hardware 4 will meet these requirements. Consequently, Tesla plans to upgrade existing cars with new hardware, a complex and resource-intensive process that will involve establishing multiple “micro-factories” to manage the volume of retrofits. Musk also set expectations for the full release of unsupervised FSD, suggesting it might arrive by the fourth quarter of this year. However, industry observers remain sceptical, noting this is the tenth consecutive year Musk has forecasted imminent availability of the technology. The ongoing delays and hardware limitations highlight the challenges Tesla faces in delivering on its ambitious autonomous driving promises, even as it continues to push forward with innovation in other areas.