Tesla’s New Diner Is Serving Burgers, Showing Movies, and Has Plenty of Robots

A Tesla Optimus robot scoops popcorn and gestures during the opening of the Tesla Diner and Drive-In restaurant and Supercharger in Los Angeles, California on July 21, 2025. (PATRICK T. FALLON/AFP via Getty Images)

Tesla has unveiled its newest engine, and the car maker just might satisfy some hungry drivers.

CEO Elon Musk has entered the restaurant business, opening Tesla’s first-of-its-kind diner Monday in Hollywood, CA. The futuristic-looking pit stop, with two outdoor movie screens and an electric vehicle charging hub, is open 24/7. There are more than 250 seats and 80 supercharger stalls.

Inside the building that resembles a spaceship, a curvy dark gray countertop frames the center, with white high-top chairs rimming the perimeter and other seating scattered around. Atop the tables, burgers are packaged in Cybertruck-shaped boxes. Upstairs lies Skypad—the rooftop area with outdoor seating for those wanting fresh air—with a humanoid Optimus robot standing behind the counter scooping popcorn from a machine.

Emblazoned everywhere is Tesla’s red lightening bolt symbol.

The diner, called Tesla’s Diner and Drive-In, offers a selection of food including popular items like the $13.50 Tesla Burger—a smash cheeseburger packed with an “electric” sauce—and the $13 all-beef hot dog garnished with mustard and onion pickle relish.

All-day breakfast items—featuring egg sandwiches and waffles—and beverages are also available, including sodas, coffee and kombucha sourced from Oceanside, Calif. As detailed on the back of the menu, most ingredients are sourced locally from state farmers and small businesses.

Entering the restaurant market could be a way to boost Tesla’s brand awareness to non-customers, says Wedbush analyst Dan Ives. “Tesla is trying to become more ingrained in the everyday lives of consumers,” he told Barron’s. “It’s not just about the diner and the food, it’s that they also associate Tesla with a good customer experience.”

Tesla electric vehicles charge during the opening of the Tesla Diner on Santa Monica Blvd in the Hollywood neighborhood Los Angeles, California on July 21, 2025. Photo: PATRICK T. FALLON/AFP via Getty Images

While waiting for their EVs to charge, diners can hop inside and order food or purchase brand merchandise. Tesla owners can order ahead from their in-car screens. As they eat, customers can catch a movie on either two of the 66-foot LED screens or in their vehicles using the Tesla Diner app. In the parking lot, Tesla owners can inflate their tires free of charge using an automated air tower.

Musk said in a post on X that if the diner fares well, Tesla will open more in major cities around the globe along with Supercharger sites on long distance routes.

This isn’t Tesla’s first venture in a new industry. In June, Tesla launched a group of AI-trained robo-taxis in Austin, Texas. Musk previously said the company plans to create several thousand robots this year and nearly 10 times that in 2026.

While some analysts project booming success for the robot business, GLJ Research analyst Gordon Johnson argues that some human intervention behind robo-taxis and robots’ operations—coupled with an “imploding” car business—have dragged Tesla behind.

“They’re failing in robo-taxis,” he told Barron’s. “That’s technology from 1980s Chuck E. Cheese restaurants. So, they’re failing robots.”

Tesla has had a rocky year, with global car sales declining 13.5% in the second quarter of 2025. On Wednesday, Tesla reported adjusted earnings per share of 40 cents on $22.5 billion from sales. Analysts surveyed by FactSet expected 39 cents of earnings per share on sales of $22.1 billion. Operating profit of $923 million, which dropped 42% from a year ago, fell short of Wall Street’s projections of $1.1 billion. A year prior, the auto maker reported EPS of 52 cents on sales of $25.5 billion.

Shares edged up 0.1% to $332.56 at Wednesday’s close, while the S&P 500 rose 0.8%. Tesla has a market capitalization of $1.07 trillion.

The auto maker’s foray into the restaurant business could spark a wave of innovation in an already softening industry. Higher restaurant prices coupled with tighter budgets has led to consumers scaling back dining out. Menu innovation and operational efficiency remain crucial priorities for diners in the future, according to analysts.

In the long term, Johnson said he believes his other sell-side peers could value this opportunity in “the trillions of dollars for the potential of taking over the diner segment across America.”

“So why not pivot to diners, where the market will give you a high valuation as you innovate making burgers and fries?” Johnson said.

Write to editors@barrons.com