Tesla (TSLA) 25 Oct 182018 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Tesla Q3 2018 Financial Results and Q&A Webcast. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to introduce your host for today's conference, Mr. of Director Senior Viecha, Investor Relations. Martin Mr. may you begin. Viecha,

a everyone. Thank I'm third Tesla's and Ahuja, joined executives. afternoon, you, good Welcome and Deepak quarter Straubel, by Musk, to of Elon other Sherry, today J.B. number XXXX Q&A webcast.

at were at in published X:XX PM same link as Our the announced Pacific letter update QX about results we the Time this webcast.

are Actual expectations we discuss differ to make in or These including with comments filings and as could our forward-looking and the those recent predictions today. outlook During based business will materially our this a events risks call, results number mentioned of on and SEC. most statements. due our of uncertainties,

Instructions] question-and-answer please into today's call, jump portions opening one Q&A, limit Elon the has question Elon? of before follow-up. But some we to During [Operator remarks. yourself and one

Thanks, Martin.

here I'll to going people safety. we then have make a and talk about Tesla elaborate remarks, some of battery So safety, Autopilot And to we're number on that. opening vehicle from

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you, Thank Elon.

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things detect done team the can of in us, and incredible work directly as has cameras us. come more here toward Yeah, they around just of up the front an car the not bringing by we

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Pete?

Hi, move Pete this Hardware The to is along. Bannon. design continuing is X

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be will hardware. processing increase capability And XXXX% roughly the compared current that Great. to in on it

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sensor X full to the suite, self-driving. two expect be we upgradeable anything last made all in years will cars basically with Hardware So a roughly

Yeah.

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AI My all Karpathy. analyze Andrej networks name in for Tesla. everyone. here the is streaming of cameras at team neural the Hi, certainly. the of that Autopilot. from I'm all And the director my the Yeah, images trains

neurons, these lane to lines, make run accuracy us about The identify by finding networks team deploy talked that, capacity. as Pete as with example, The about. reason in a is the current excited on. neural For allows of we traffic which this more more the but briefly just upcoming upgrade bigger much more to allow added their adding it networks Autopilot neural upgrade the is and importantly, not the computer important us that see will industry all common networks and larger, incredibly This predictions is well, fleet. for cars, to networks faster, the it the increases signs you expensive that is the the computationally this is so

are So we to very are them due that large words, we in to deploy networks to not fleet well, where a computational but neural able at trained work other currently the place constraints. we

hardware. improvement this there. of all out it's is compute get And the massive the And next with a So, change will step of networks the team iteration to excited capability. the incredibly in these

you. Again I've I of of absolutely the we kind future thank bit before, see think kind a about of talking actually the long-term electric Great, just a as - - what autonomy. future, shared as said - sort this

some So any in dedicated cars and car and customer combination able to like that be ride-hailing you your be like sort do Uber, Lyft or model you'll will their of There be able Airbnb. to will your anyway, ride-hailing share there long-term Airbnb. and will be house Tesla car of that's just - for share at will, share

of So it's models. a two combination those

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ahead. made we please, And yeah, go think great please, strides. I

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to be in company we here the is. to have the to committed safest everybody and be that, So world,

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not doing like like and them had example, like been that so Yeah, OSHA do like were it's many sort. their nothing injuries. acquisitions, unfair example Absolutely. worth that we completed for example, was sort we investigation this of, mentioning we anything underreporting of have were we the of for one that get concluded like for quite some And like

And X-month-long as factory should proves basically doing correct. had be. that we are properly we investigation. here Correct, The a Cal-OSHA recording it and

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engagement. and people is First

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strong a the We have the brightest. and built EHS really team, best

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to on that. going we're Yeah, expand

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listen. right, Laurie. All Thanks,

Thank you.

morning. world, we'll people safest factories on unequivocally forward look Laurie. safety. the the to Thanks, the will is coming work have further And in where our workplace provide to in goal updates And to

All our that, goal. we yeah, move to can questions. with like, it's right, So that's

go thank first you Sherry, please. Well, the much. let's question, Cool. very to

you. Thank

Galves question Wolfe Our from Dan comes Research. first with

In for some has expansion, supply. battery cell so on demand call. outpacing my My on the been for your amazing tight the noise and for landmark long-term in this supply taking what's plan see for quarter to quarter. cell including There covering thanks question Sparks kind It's of cells of Congratulations the questions. term, And you about It's China? some short supply about could whether tight to your talk supply about interesting. of and is in Hey, labor supply. long. just thanks cell is very team bringing after company the really

JB, do you to want take it?

is This JB. that. to speak can I Sure.

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than a Less week.

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of continue supply production So can Sparks. the that in even Panasonic independently

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up line Panasonic the the and several shortly So there's coming yet that. line production with weeks, on, end we've even last another started through just cell after of the then in one another and year,

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Yeah.

I We think batteries. wondering are pretty like, the making I’m amount a or XX% a something? world's at of we're nutty lithium-ion

Yeah.

little the about if was gigawatt half about in vehicles world, QX, or for bit look at electric battery at, And of was total world's moment, for the XX around example, a about capacity made produced higher, So what all same their QX basically. so we or batteries hours. XX the you

and that's that because from we [indiscernible] towards or…? and elsewhere. Japan also cells - Is just Giga Well, sourced

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it Long-term, be China. long-term situation, Short-term, certain not the will of in produced certainly. but we're short-term

much. very Thanks okay. it, Got

you. Thank

question, the please. to go next Let's

Thank you.

with comes Ferragu Research. Street Our next from Pierre New question

that on for gross Hey, in was the by the performance very your numbers X. margin questions. - reported Model today surprised taking my I you thank you

you a XX%. So quarter, actually better were more like XX% did if you I expecting remember type and this of than correctly, for margin

had manufacturing improved what's came than initially So improvements the and you take in where faster line, and better anticipated like can from? these us you through

here, please feel join. free Jerome and and Deepak to others

were cost the on aspect of every improvements cost. Our side in

So - costs almost produced manufacturing labor QX improved clearly, cost had our volumes, we dropped manufacturing to better so more absorption. fixed QX. significantly our We sequentially overall hours XX%

We have far less scrap.

on improved as forward, factories of both we more the even we significantly. each yield lines look Our And see across opportunities.

phase, the production QX. We now we team intensely that are just and where And stabilizing can continue now focus cost are this through on will optimization. going in trend

I think on relatively being we’re when also XX% - predicted, said side where conservative like we're… the that we we

Right.

but expectation was wanted do we Our will we better, to be conservative.

You're right, in terms of gave Yeah. our guidance for that QX. we

about to you higher car, and other as and two the are abroad That's the Okay. a - as stick you've at to what it you like car with the keep one higher ASP a Thanks. one options, car great. think over to to was And pack. on for as for follow-up, was And seeing was announced and you're the battery U.S. expanding, lower a have go I weekend quick the example, then mid-range Model end, looking I cost X, smaller wondering, go

decide So how car these did now sequencing of you lower and year? Why abroad early going is the next only two things?

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so ship, because probably as have a We significant all and timeframe, the Europe of to in to for the February, the volume cars correctly. customer from And reaches late significant start March completed the deliveries if us, for the counted paperwork Europe to the to in Europe. a all delivered only deliveries get car And is pretty in is time customer - end some kind expect obviously way in producing California January. it take

So standard possible highest a Yeah. sale. considering for it's the a sale

that cars. [Indiscernible] you delivering start

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but definitely APAC Definitely - in Europe, I it So then in certain. for in say QX. and can't

Okay.

Let's next go the to question, please.

you. Thank

comes with Instinet. Our Romit next from question Shah Nomura

you're you in thank Europe along going production I Yes, would Where you. just to overseas? see order like you support those early Model bring to lines, X guess, year. that next indicated to that ramp to

months, Well, last, mean, will our I the is car takes at initially - it production our production in vehicle several plant take production at least place occur. will California.

rate order to on ask, go in where a to to, weekly meant like ramp? to production support I that you basis would the Sorry, see

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from to year anywhere yeah, million X So, long that's a term. XXX,XXX units

you to the new add have in you to or lines support to And lines? to just that existing are remove going continue bottlenecks

going local We're China. definitely rapidly moving on production do to that. in We're

production Model to factory very in also - for certainly year. the assembly it the way next California long-term, did be done be X silly have all China then, China happening we're But general far. year. to that's in market a and line we it's because to And pretty Europe, in X efficient driving them and line cars manner, versus - or a next market to in will the in assembly much capital way X. we'll general ship with Europe make have akin active Greater So It more will the

volumes. high in Especially,

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So will continue in California. made to be X S and

I here. exquisitely think probably

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Okay.

Let's go please. the next to question,

you. Thank

with question next from Evercore. George Our comes Galliers

just think following rate up X,XXX, mentioned in required placed question, to And on the the you'd assess better get I is to Thank to you produce Model run to you. of Maybe XX,XXX a in got Fremont. there. Xs previous that a still CapEx around you be is once what past, week target the

you do at kind better of is CapEx So idea what to of get as required of level to today, have a that Fremont?

except to money prepared we like speak like less, quite spent CapEx. for we're dramatically - Model now, really the see units probably I get that to X quite right that like that think less path to think minimal with will I place, so X,XXX than X,XXX first considerably a not I in it be

minimal. Very

Yeah, uptime minimal X,XXX just that's to very we to Jerome, get yeah, a week. I then, mean, solving can do week. and And improving X,XXX really existing of the - basically a it's the lines

Exactly.

Exactly, yeah.

a basis. probably curve. hit calendar that sort am can of so. But we or Fremont out go things So because a and predict something do. small miss, at quarter-by-quarter massive cleanest - difficult, you to it's, the tricky don't I amounts - down world, it's But over the exponential time, have start to a the I exponential term, we as - in of cars easier get because Fremont these look always Yeah, know That's deliveries a like is mean, like if from such curve large on like like of to time look growth basis in long-term little rest in an year would X, it's long-term to I above CapEx. very when we're then also not would mean, that's XXK. a in guess. or to of if it's like you - say talking lines X,XXX least predicting rate seen. Model movements significant again bring But cumulative long the you or other, or a at X,XXX I way quarterly Tesla lot you ever a then, But not upgrades to it's I've harder go steep This why that. as it XX,XXX for it's gets very and X,XXX We X,XXX. - need about I just is

for to just Okay. comment of or out the Europe? you twice in sedans expect it of S U.S. mid-sized a is do size also off is your the versus Could mix the Thank as in mix X, the Model U.S. letter, you you. and a similar? what Based the just in follow-up, that Europe market Model the And of then, maybe expectations do European premium roughly fairly you richer point

- zero Martin, know, I that this I is - not is this thought. you're mean, given don't I've not, to…? like going We've

the we all-wheel to aware see what I'm mean, long because selling Europe. weather to drive car I be have that, apart from demanded is But will of cold probably ultimately and in All so… that, demand range of is, the and battery highly start

is in Europe car, less the margin. gross positive to there's if cars can Yeah, market. demand be is but electric pretty, make at $XX,XXX to likely Like that bet. It's cars. as I and - market value everyone make mean, least Europe. it. to goal not high option our be it most line could pretty would we six than need much a that's seems our it's than is mission. can big likely there car like hot today, - there have that, $XX,XXX mean, do We to do we to work But it's we forward, be produce like We're it's from it that And, more to work, I really the comparable sort I that's months more well, probably safe in of before like, - think in is twice

Great.

Let's go to question, please. next the

Macquarie. Our with [Operator Um Maynard question next from comes Instructions] Thank you.

point Congratulations a Tesla. Hi, turning great thank for on you.

growth you As to and about sustainable think of the you talk you how the business, cash or GAAP I'm you can to fund new opportunities? GAAP or or about scale take there's But curious, targeting profitability flow and if continue balance we then should profitability operating a profits margin GAAP accelerate excess versus flow. want level are You cash reinvestments? to how hold

you like, that would will Is question are in profitability like positive, and maybe GAAP - - characterize could the no. an vehicle that that cash accurate? Sure. new it order be is to answer flow essentially we'd I we mean, if achieve development be starving

Model on progress made Y. we've the significant So

before fact, prototype will We volume XXXX in that's in production. the into made But - to there. it So I saw approved be production great we recently. progress

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do, know sure I company I'm product the any have not would of about like Maybe roadmap we've product close, have got better far. - them. would by who company don't probably think, which I yeah. even don't - exciting a even I twice but even or know they roadmap most

can And or you you enable build takes revenue going business Is piece like Tesla out for plan giving a a that's platform talk the Apple And should its people like then thinking model long-term of car think be ride-sharing if is into - to about from applications also more about of companies generated like iPhones? maybe applications loan that to directly that we just your Thanks. application. sort model? I'm an a car an revenue-sharing how Great. curious the their Airbnb to to turn fleet to own having when about model, write ability

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it's So order why certain Uber, we the something to then you and of And car or the to probably XX% [ph] know fleet. tried don't we charge something, for a [Asterworks] I or that's combination say comparable have to, to Lyft Airbnb. yeah, add somebody in

way I to think a pretty go. sensible that's like

Okay.

please. next the question, to go Let's

you. Thank

Jonas with from Morgan next question Adam Our comes Stanley.

Thanks, everyone.

best Chairman, you company First on best would a be the that what for conducts Tesla? shared governance, for question its person experiences attributes, the or think of value new are that a is as search

operational have… will get to Do you restricted topics. Actually, I question it

car and to how have No to brands problem. follow-up. they're who switching deliveries the That are many Yes, of and I Model you a I are about of us What you prepared the folks or kind out then share brand? X. the taking are tell do. anything trading models Can new are top cars,

Yeah, absolutely.

Hey, is Martin. this

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than the lot other half priced I that no highlighting $XX,XXX trade-ins cars, noticed upgrading there's anything think worth when real their than other that quite that were received is people below I a But the just we've pattern. it's number than one of dramatically. new. message, it's just more haven't of

a huge is upgrade. This

Yeah.

most for most they've it the For car people many bought. expensive - is ever

clearly money what are Tesla. spend they extra demonstrating they a to the to money get So willing we're that

premium. So sense like like the mass-market

ownership, the cost whether it's beyond the sustainability, of log price whether way the back the value spread. clearly car, is And it's brand that perceiving, it's whether they're or… It's the for

Safety.

making above up number the jump is …and safety, in customers all purchase products. a large of the of significantly

keep mean, I going a I to Tesla like feel reason safe. friend to honestly the your really top refer friend is by just Yeah, like

of think you becomes think I could self-funding, milestone, in in third where that capital? quarter the That's Thanks. couldn't a ask the sustainably outside that squeeze is Tesla good reason. If first I perhaps can one since and you just do you Elon, need answer, not a

not them debt. the may off is almost right of that intention pay intend off to but our important leverage the At or to future. actually load But forgot That change company. to plan do equity debts them, debt reduce quite the and Yeah. thing. not We I and refinance goal. is pay our raise the overall current one now, in But our that's least operating

logistics, for and - to example. always sort helpful, have it's As situations quite these is with crisis of this helpful

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products as to per the per the time August, possible. days. of the the of to of order QX around factory to promise. get to $XX getting day. average customer customer a the was customer long. cars to get in which car we've capital XX time worth making car because XX our the that the of to a it America from embarrassingly is a end to is In on XX we're company, a this not goal, from from the goal to giant By a - average the our car short in factory under - And day reduced So is North million improvement is get But days. in as This efficiency of days, goal factory of quarter,

vehicle. bank every it's a can million loan translates capital, the cost $XX,XXX banks price $XXX So with to But the so of days, - vehicle, we every day, of which the $XX XX we the of. about us XX% required it the of loan use XX% we from obviously, have that And the make - only will of million.

we've and it. car. inventory XX% And - the to got one - this transit the tune of loan then increases of So company the finished the of in goods the of effectively of it dilutes the outstanding, which COGS

the factory to time are, the system. car So days the getting I under just like from this think, North XX we that our suppliers average, very America over over overall days. time with we is worldwide. Asia. that get on really and is a It is like have from dramatically the factories Because, of and want efficiency And that X tightening time, below time to also then, the from where a Europe - terms going customer that in transit having then to actually important XX days local improving for and capital

few Now, of million inventory to $XXX at or probably product a $XXX the Deepak, like factory. of a something lot also $XXX management or million COGS down for that, improvement so, there. We think cut room our there's maybe million can we that

working going Deepak, efficiency like where the It's and a capital important capital quite we're go anything grow the night This to faster there what point is is day. effectively, to… the we have. dramatically, capital to requirement you company reverse the So for the would for we more company. is of incredibly so

No.

the stable, the car the into convert you production inventory we one significantly are - and the improves totally finding deliver on reducing supply material reducing management time and And raw that by keeping needs. cash. and that I the capital hand warehouse chain. And to efficiencies same a are time, think, car at working

quite really it's Yeah, dramatic.

of So, changes the financial it profoundly Tesla. think yeah, effectiveness sure I

end, which in the had us in payables QX, of weekend, beyond, the in because helped. and working the quarter we that And higher QX Yeah, we QX, help sorry, we because all higher continue although reduced to capital should our - again. so then, inventory receivables, this won't have

Tesla Yeah, that, any that customer. to mean, the from if was the even like all different over would that did me It In time. of given if companies not a shorten only it only I was - even end thing would thing the the factory this to to company occurs time outcompete contest. be

Great. much. very Thank you

question, Let's the next please. go for

Thank you.

comes from question Sacconaghi Bernstein. next Our with Toni

and quarter. Deepak then for one a have strong management I was you. please. in the thank expense Yes, follow-up the very Deepak, OpEx

and was I XX% only OpEx year-over-year sequentially up think was XX%. down growing X% despite revenue

that basis? on too get did to how forward, in of more rightsized? front, you hindsight I and more mean, on get bloated So a do growth revenue versus think And kind needed OpEx looking we normalized about growth

And OpEx all. from X% just terms really took of to in a Toni, by efficient QX. clarify decreased with headcount. that in our our to first was lot of QX, more be We actions that employee careful And benefitted our we of by the excluding spending. we Yeah, were of one-time items, all so that driven sequentially

while expenses spending Model leverage other X can we the QX there. just dramatically. piece us is it sort R&D because the on of And X is that is Model revenue of of our a into the gives reduction expense helped saw growing you lot going so QX sense reducing, The to production, was of the have

we are the and continue that can slower actually in will So, really, we will find. our more about careful rate at think spending. be to future, efficiencies And OpEx the there far I really but a increase

going are them, find to We absolutely.

continue will path. so Right, this we down

Definitely.

And just $XX,XXX X to could if for then then you gross you bit that. follow us - wondering car. And the to Model I margin thank on the back a to help was or up, the little and

that alluded that I zero. So on X you fact is suggest Model X $XX,XXX gross were the this terms be ASPs to before Model $XX,XXX the really get on X does a Elon, And gross to you is And, that of margins car and is where to quarter, where offer before a margins positive $XX,XXX gross to Model to might about it think goal impute shipping. want where broadly today? that Are margins a the $XX,XXX Model maybe I those all in X, consumers? it - fair question be assessments? need And would I be guess might

to no the accounted will it's that will in different. the I That's of what - car mean, is, COGS we deal configuration let's is it where so under you $XX,XXX a the we're is to literally challenge for those slightly That I and point be where $XX,XXX ask to with of changing - situation, car of get we the asking if and - sell questions think ideally achieve. nature $XX,XXX. a the need a say, less car - can pushing car another the month, would or be it want would full a goal. Like month, is of COGS than rapidly question be a of There get different to Yeah, it we'd that, very that the that's XX,XXX. order to on our hard like

that the it's packs, a of see… the that [Technical we not amount pumps the Exactly. time, And significant fewer same matter a is have a cost you cells it's in material reduction smaller battery Difficulty] cells. And existing of It's cars. there would

it's but an not [ph] the… [What's cell, interesting]

so of [fewer [ph]. the cells, It's costs] same amount

pack, and then non-cell there cells reduced. of the Fewer cost also portion

of has still packing it cost. about mid-range non-cell the the current pack portion the basically With same

will our And fixed as volume in grows And we're all cost achieving costs which massive in continue. helps us absorption. manufacturing also per the reduction that of car,

us so Anything add the get will there. us JB us factors going helped that for it's has forward to to continue same far, So want to help you that?

Yeah.

Great.

Let's next please. question, go to

you. Thank

with question next Edge. James from Consumer Albertine comes Our

and Great. question thanks and Good afternoon, taking the congratulations. for

Thanks.

that or other Where under XX see point? the Is and that do COGS perspective? is end we services flow to I by is clarification, end this the an the a XX, goal the in to through you get the gross August, to Elon, in a at a want of XX was quarter mentioned factory the to car at from XQ. down customer automotive your just from that of point time days, margin

It's the outbound. It's gross all automotive. logistics margin and all in in cost COGS, our automotive,

to see or we'd think I Yeah, is logistics. carried well like a inbound your the is that logistics as of not? debt for going that time, of as that outbound that is Maybe Outbond COGS, in period reduction logistics. is question

expense The That line. also the in interest that's is COGS. interest expense not in

That's I the the cost volume, yeah. like directly - why driven marginal Okay, anything of vehicle. should to include COGS the - do that's affects broadened probably the by in that difference essentially think

effectively So to should interest the it apply although that car. is of COGS, in the not cost in - officially the expense in It's my opinion, be. to and probably ABL take that

And cost business, at the of looking can which broader as sense a be it from avoided. doing you're

Yeah.

reduces, the cost you the essentially, And Dilution the of then increases also because ABL interest dramatically. have ability cash flow the outside dramatically. line leverage quite expense. don't or effective the Just, of improves car

is If over difference. interest versus expense you big have XX days days XX a

Yeah.

Understood, and clarification. that appreciate I

service on to But and provide and several and willing could trough think stand that services margin starts and kind on And some some lot trying know sales, quarters I update at, building terms if willing you update I of maybe an generate charging to vehicles, of other corner for but an profit where in would be battery understand for a get And your running a just out you today goal, been to there, but Thanks. in of maybe if now. negative provide to costs, you where you. maybe clarification a give Sort if gross sense with I wanted turn helpful. could to on for you're of that ICE I going you're of get trajectory? and parity for stand sort us that you've a infrastructure. when there's to

size see think, revenue quarter over as we and other in an grow, fleet progressively grows, every for simple improvement will as as our that. and continues business, I time, the to the service

Yeah. Long-term, significant and margin contributor, about function size… going a to be positive it's would be to expect I a fleet a as item, revenue to service be

And age.

essentially… it's Yeah, and

is car the if under now. And warranty Exactly.

Exactly, under warranty. we're

of expect the positive lot gross a as expires, like non-warranty warranty. we'd margin. items stuff there under then is warranty so like Just to is service But

car that includes used And also savings. Okay. our

point. good Yeah, a

continuing car And margin. savings our have used and grow they is a to healthy

at business just as of profitable the overall in stage opportunity companies than more of new That simply our just a time, not grows car are sales. for there business. that are product talking size we is OEMs, I'm that so, growth our And early And in many some here. cases auto about And mature matter fleet said. OEMs. so it's

Yeah.

was There cost? battery question a the on And Okay. there.

is metrics. of Well, key that a like competitive sort

by think it's I we're say, we safe to give to else and But a not better precise much anyone large. number. prefer So than

Okay. And question, the now let's go last to please.

you Thank CMBC comes LeBeau Phil TV. from our final question with

guys. threshold, into? Elon, the impact to of your slow a you credit much in federal of potential question, guys what kind out How you, down have Thank starts sales as quick phased sales? might terms cross over the tax modeled that an

cars in the to this But We end sales below, result will minimum mean, X,XXX this Europe or to And expect U.S. we drops are quarter. start productions the the - we tax of in half that - tax do also Asia. start cause a say, not I then those don't the drop let's of a week. expect in shipping then to shipping and incentive anything yes, at certainly

in it in and the sales demand do But down that expect within terms United the U.S.? you will slow of States,

the as car like back holding of intentionally. be cost think of lower we're want like it's expect we're that version we in would demand clear, offer that versions low able cost to U.S. sustain car, not I to the this to I the

that got got range could then And take cars smaller at just are now, with slower customers. if about lower depopulated packs, we Just to that like end production. going. really And going [ph] the came least - production is with get car can possibly - know the pack go fewer the we long provide affordable It's we to us, you pack delivered do with we production have make having could would. the said, is we cost to to the It's we to up providing to taking basically got now, to months going to where do I And best don't we absolutely The going care go car anything we get like most like there packs vehicle to to long-range pack. produce, customer that's just factory. that and the probability. three to cells,

February that something something It's probably And… So March on maybe. of the that's why order order. or customers will the smaller pack on battery or like see

Okay. Thank you.

triggered least, in did I maybe One kind points the like bearing thing it - of at that mind. was

quarterly our there, out per energy the the indicates, because best As got efficient Model most better has electric X vehicle mile is efficiency. - the the it's

So we other lowest most miles companies with of efficient best to for kilowatt makes Tesla, or and car kilometers we've in of got also the very cost the difficult And have the batteries. This terms compete it the per because hour. lowest per kilowatt we hour. cost own

to that want So them disadvantage make and because a competitive then help much didn't saying help. we we in I do competitors for long as encourage take - our a they only time. they're really to tried And a huge could And our they investment. been to didn't we've as

position efficient and what has But factory didn't. use happy a into cars an the but as competitive The in of just the quite and - network, have And all for can having other we or matter our the We sure, fact super having our which We they put the and adapter put companies as use free. to were us lot made can in patents to the most possible is rest they over - they charger time, we extremely So that's other that they want that right now. effort strong if the a Giga efficient for something. other companies be power-trains, will investment didn't. - connector of helpful industry.

I all today. that's Fantastic, have we think time for

Just to I comment want add closing. a in

Sorry, it. go for

prior started and personally wanted myself and want quarters employees that from this Elon part incredibly to every say each of and personally And our that thank it, to quarter with I in here. then all hard the I Tesla worked business.

our are really done our employees transition sustainable company, passion by all despite deliver done and that thank have results who in believed results and execution in want have to vision company, and accelerating our investors the And all Our our product, customers energy. the of also the the our world's all of the I reflection a to such in to odds. us,

So thank you from myself.

good. I'm No,

anybody anything? yeah, right, All or All forward Thanks. the have any additional I comments to right, call. thanks, everyone. And, next

Goodbye. you. Thank

Ladies the participating in conference. and program. This conclude for does gentlemen, thank you today's

wonderful disconnect, day. have all a You may and