Hello, everyone. Well, there's never a dull moment these days. Thanks for sure. Every day is going to be exciting. As some people know, there's been some blowback for the time that I've been spending in government with the Department of Government Efficiency or DOGE. I think the work that we're doing there is actually very important for trying to sprain in the insane deficit that is leading our country, the United States, to destruction. And the DOGE team has made a lot of progress in addressing waste and fraud. The natural blowback from that is those who were receiving the wasteful dollars and the fortunate dollars will try to attack me and DOGE team and anything associated with me. So, but then I'm really left with two choices. Should we just let the waste and fraud continue? And it was continuing at a — to grow at a really unsustainable pace that was bankrupting the country or to fight the waste and fraud and try to get the country back on the right track. And I believe the right thing to do is to just fight the waste and fraud and get the country back on the right track and working together with President Trump and his administration.
Because if the ship of America goes down, we all go down with it, including Tesla and everyone else. So, I think this is critical work. Now, the protests that you'll see out there, they're very organized, they're paid for. They're obviously not going to say, admit that the reason that they're protesting is because they're receiving fraudulent money or that they are the recipients of wasteful largesse, but they're going to come up with some other reason. But that is - the real reason for the protests, the actual reason is that those receiving the waste and fraud wish to continue receiving it. That is the real thing that's going on here, obviously.
So, now that said, I do think there's the large slug of work necessary to get the DOGE team in place and working in the government to get the financial house in order is mostly done. And I think starting probably next month, May, my time allocation to DOGE will drop significantly. I'll have to continue doing it for, I think, probably the remainder of the President's term, just to make sure that the waste and fraud that we stop does not come roaring back, which will do if it has the chance. So, I think I'll continue to spend a day or two per week on government matters for as long as the President would like me to do so and as long as it is useful. But starting next month, I'll be allocating probably more of my time to Tesla and now that the major work of establishing the Department of Government Efficiency is done.
So, at Tesla, we've gone through many, many crises over the years and actually been through many near-death experiences. We were probably on the ragged edge of death at least on maybe a dozen times. It's been so many times. This is not one of those times. We're not on the ragged edge of death, not even close. So — but there are some challenges, and I expect that this year will be, there will probably be some unexpected bumps this year.
But I remain extremely optimistic about the future of the company. The future of the company is fundamentally based on large-scale autonomous cars and large-scale, large volume, vast numbers of autonomous humanoid robots. So the value of a company that makes truly useful autonomous humanoid robots and autonomous useful vehicles at scale at low cost, which is what Tesla is going to do, is staggering. I continue to believe that Tesla, with excellent execution, will be the most valuable company in the world by far. But that's an important if, we must execute well. But if we do execute well, I think Tesla will be the most valuable company in the world by far. It may be as valuable as the next five companies combined.
So, but there'll be a few bumps along the road before that happens. I said I think on the last earnings call that we'll start to see the prosperity of autonomy take effect in a material way around the middle of next year. We expect to have these — be selling fully autonomous rides in June in Austin, as we've been saying for now several months. So that's continued, but the real question from financial standpoint is when does it really become material and affect bottom line of the company and start to be a fundamental part of the — when does it move the financial needle in a significant way? That's probably around the middle of next year, second half of next year. And then once it does start to move the financial needle in a significant way, it will really go exponential from there.
So that's, I'd encourage people to look beyond like the, some sort of bumps and bundles of each road immediately ahead of us. But left your gaze to the bright shining sort of down the hill, I don't know, some Reagan-esque imagery. And that's where we're headed and not too distant future. Like I said, kind of next year or two. So, let's see.
With respect to supply chain risk, something that Tesla has been working on for several years is to localize supply chains. This actually makes sense from a cost standpoint and from a logistics risk standpoint, is to have the supply chains be at least located on the continent in which the car is built. And so we are, I think the least, a company, the least affected car company with respect to tariffs, at least in most respects, I mean, it remains to be seen. Now, tariffs are still tough on a company when margins are still low. But we do have localized supply chains in North America, Europe, and China.
So that puts us in a stronger position than any of our competitors. And undoubtedly, I'm going to get a lot of questions about tariffs, and I just want to emphasize that the tariff decision is entirely up to the President of the United States. I will weigh in with my advice with the President, which he will listen to my advice, but then it's up to him, of course, to make his decision. I've been on the record many times saying that I believe lower tariffs are generally a good idea for prosperity, but this decision is fundamentally up to the elected representative of the people being the President of the United States. So, you know, I'll continue to advocate for lower tariffs rather than higher tariffs, but that's all I can do. So, now let me walk you through why I'm so excited about the future of Tesla.
So, first of all, autonomy. The team and I are laser focused on bringing robotaxi to Austin in June. Unsupervised autonomy will first be solved for the Model Y in Austin. And then — actually you should parse out the terms robotic taxi or robotaxi and just generally like what's the Cybercab because we've got a product called the Cybercab and then any Tesla which could be an S3 extra wide that is autonomous is a robotic taxi or robotaxi. It's very confusing. So the vast majority of the Tesla fleet that we've made is capable of being a robotaxi or robotic taxi.
And as we're going from — once we can make the whole system work where you can have paid rides fully autonomously with no one in the car in one city, that is a very scalable thing for us to go broadly within whatever jurisdiction allows us to operate. So, because we're solving for is a general solution to autonomy, not a city specific solution for autonomy.
Once we make it work in a few cities, we can basically make it work in all cities in that legal jurisdiction. So, if it's — once we can make it based to work in a few cities in America, we can make it work anywhere in America. Once we can make it work in a few cities in China, we can make it work anywhere in China, likewise in Europe, limited only by regulatory approvals.
So, this is the advantage of having a generalized solution using artificial intelligence. And the — an AI chip that Tesla designed specifically for this purpose as opposed to very expensive sensors and high precision maps of a particular neighborhood where that neighborhood may change or often changes and then the car stops working. So, we have a general solution instead of a specific solution. Then, with regards to Optimus, we're making good progress in Optimus. We expect to have thousands of Optimus robots working in Tesla factories by the end of this year, 10 years forward. And we expect to scale Optimus up faster than any product, I think, in history, to get to millions of units per year as soon as possible. I think I feel confident in getting to a million units per year in less than five years, maybe five years. So, by 2030, I feel confident in predicting a million Optimus units per year, it might be 2029.
So, let's see with respect to energy, energy business is doing very well. The Megapack is — enables utility companies to output far more total energy than would otherwise be the case. When you think of the energy capability of a grid, it's much more than, say, total energy output per year. If the powerplants could operate at peak power for all 24 hours, as opposed to being at half power, sometimes a quarter power at night, then you could double the energy output of existing power plants. But in order to do that, you need to buffer the energy, so that you can charge up something like a battery pack at night and then discharge into the grid during the day. So, this is a massive unlock on total energy output of any given grid over the course of a year.
And utility companies are beginning to realize this and are buying in our Megapacks at scale. So, at this point, a gigawatt class battery is quite a common thing. So, we have many orders and offer for gigawatt and beyond batteries. And we expect the energy — the stationary energy storage business to scale ultimately to terawatts per year. So very, very good numbers. Now, Q1, first quarters of a year are usually pretty tricky. Because it's usually the worst quarter of the year because people don't want to go buy a car in the middle of winter during the blizzard. So we picked Q1 as a good quarter to do a cutover to the new version of the Model Y and we changed production of the world's best selling cars with — remember the Model Y is the best selling car of any kind on earth with a 1.1 billion unit per year output of a single model. And we did this changeover at the same time in factories all across the world. So congratulations to the Tesla team on an amazing job in pulling off what is a very difficult transition. So yeah, it's really very impressive work. So, yeah. In conclusion, while there are many near-term headwinds for us and the border industry, the future for Tesla is brighter than ever. The value of the company is delivering sustainable abundance with our affordable AI powered robots. So this, I like this phrase, sustainable abundance for all. If you say, like, what's the ideal future that you can imagine? That's what you'd want. You'd want abundance for all in a way that's sustainable. It's good for the environment.
Basically, this is the happy future. If you say what's the happiest future you can imagine. One which is that would be a future where there's sustainable abundance for all. Closest thing to heaven we can get on Earth, basically. So, thank you again to the test team for all their efforts of the challenging time. I look forward to continuing to lead the team to great success in the future.