Does Python optimize tail recursion?

No, and it never will since Guido van Rossum prefers to be able to have proper tracebacks:

Tail Recursion Elimination (2009-04-22)

Final Words on Tail Calls (2009-04-27)

You can manually eliminate the recursion with a transformation like this:

>>> def trisum(n, csum):
...     while True:                     # Change recursion to a while loop
...         if n == 0:
...             return csum
...         n, csum = n - 1, csum + n   # Update parameters instead of tail recursion

>>> trisum(1000,0)
500500