Tesla's New Diner Offers Burgers, Movies, and Robot Ambiance
A New Era for Tesla: Diners, Robots, and a Bold Expansion
Tesla has taken an unexpected turn by entering the restaurant industry with the launch of its first-ever diner in Hollywood, California. This innovative space, named Tesla’s Diner and Drive-In, is more than just a place to grab a bite—it's a blend of futuristic design, electric vehicle charging, and entertainment that aims to redefine customer experiences.
The diner features a unique layout, with a curvy dark gray countertop at the center, surrounded by white high-top chairs and scattered seating areas. The interior, designed to resemble a spaceship, is adorned with Tesla’s iconic red lightning bolt symbol. Above the tables, burgers are served in Cybertruck-shaped boxes, adding a playful touch to the dining experience.
On the rooftop, Skypad offers outdoor seating with a view, and a humanoid Optimus robot can be seen scooping popcorn from a machine, highlighting Tesla’s commitment to integrating technology into every aspect of the business. The space also includes two 66-foot LED screens where customers can watch movies while they wait for their vehicles to charge.
The menu features a variety of options, including the Tesla Burger, priced at $13.50, which comes with an “electric” sauce, and the all-beef hot dog, garnished with mustard and onion pickle relish. All-day breakfast items, such as egg sandwiches and waffles, are available alongside drinks like coffee, soda, and kombucha sourced from local businesses in Oceanside, California.
This move into the restaurant market is not just about food; it's a strategic effort to increase brand awareness among non-Tesla customers. According to Wedbush analyst Dan Ives, "Tesla is trying to become more ingrained in the everyday lives of consumers." He emphasizes that the company is not only focused on the food but also on creating a positive customer experience.
Diners can order food or purchase merchandise while their electric vehicles charge. Tesla owners can even place orders through their in-car screens. Additionally, the parking lot features an automated air tower for free tire inflation, making the experience convenient and seamless.
Elon Musk announced on X that if the diner proves successful, Tesla plans to open more locations in major cities worldwide, along with Supercharger sites on long-distance routes. This expansion reflects the company's broader vision of integrating various services into the Tesla ecosystem.
Tesla has previously ventured into new industries, such as launching AI-trained robo-taxis in Austin, Texas, in June. Musk has stated that the company aims to produce several thousand robots this year and nearly ten times that number in 2026. However, some analysts remain skeptical about the success of these ventures.
GLJ Research analyst Gordon Johnson argues that the reliance on human intervention in robo-taxis and the challenges in the car business have caused Tesla to fall behind. He criticized the technology, calling it similar to “Chuck E. Cheese restaurants from the 1980s,” and claimed that Tesla is failing in its robot initiatives.
Despite these challenges, Tesla has faced a difficult year, with global car sales declining by 13.5% in the second quarter of 2025. However, the company reported adjusted earnings per share of 40 cents on $22.5 billion in sales, slightly exceeding analysts' expectations. While operating profit dropped by 42% compared to the previous year, the company still maintains a strong market capitalization of $1.07 trillion.
The restaurant venture could signal a shift in Tesla's strategy, potentially leading to innovation in the food industry. Analysts suggest that menu innovation and operational efficiency will be crucial for diners in the future. Johnson believes that the potential for growth in the diner segment could be worth trillions of dollars, offering Tesla an opportunity to gain high valuations through innovation.
As Tesla continues to explore new markets and technologies, the success of its diner initiative may play a significant role in shaping its future.