Tesla (TSLA) 21 Oct 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Tesla Q3 2020 Financial Results and Q&A Webcast. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker, Mr. Martin Viecha, Senior Director of Investor Relations. sir. ahead, go Please,

executives. and XXXX everyone, today Q&A Kirkhorn of Musk, Sherry, Tesla's by welcome third Zachary other number a quarter webcast. and good you, and afternoon, to Elon Thank I'm joined

time Our QX results webcast. same update announced at the we at as in PM published about deck link the X were Pacific this

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

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

Thanks, All Martin. right.

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the across performance really Just kickass world. -- throughout

Day. Of had our course, we Battery

be manufacturing. in is what will a made competitive and -- our I think core comment hosted level improve the only quite core will factor more for cell Tesla's form There's manufacturing can how battery I significantly I'm right. the technology we I in we All confident counterintuitive, So strength This showed is level. chemistry level, technology, the plans at primarily expand past long-term technology future happens. think, but and be this at that, the

really time team on batteries has rethink step presented with from and been back we long working So We scratch. wanted batteries. to a what for the

and get idea of if what, we've just just that the all you of at to through compare the perfect continue our every was we'll part from think, that cell years, and a to from are and products over are much technology. got say we And we the went rather of And result, market, battery a-third important we few engineering get be standpoint, just the First, our physics the line what it, think battery good the first say the iterate on which platonic to production required Berlin solutions expect will less batteries the and as physics? cost improve capital limit battery expenditures of aspiration. fundamental in for close recursively we see cell and a production. of wishful thinking, in and that And pretty it than cell time. or scale. where What's The they approach a half will today. core at -- other what's there? physics And And look can will have better design Giga how I to

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work. just them And to I'd their very people. of thank for smart So like hard just really group it's a

is world slow place. starting we're very think and cautiously a messy complex I and very So because the

more week. early last it put we'll then out then we and this weekend of see And course, to goes there it or collects as release and up next it it end night, then data more people and just And probably so, we how year. gradually step release it system more have, hopefully, of robust. this becomes a the until wide by the And

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months yes, XX I'd say, XX So even. to

in thing, incredibly bringing to I just because plant what technology. it's And the linear this exponential capacity the goes is time. generally, to for volume s-curve. sometimes an production So logarithmic. it beginning to up overestimated is is It a underestimated Then some quite see manufacturing hard actually an is

that's which If on got bunch you of an a order approximation, uncertainty, and with large to to And on automotive like. of plant what's the you XX,XXX s-curve an it can one and tell, the constantly bringing is s-curves think actually changing. and is x-axis, parts all up and can laggard, is slide very like which of unique one it's processes, it's difficult of which you've a just operate XX,XXX first leader,

of ever one seen. the really it's difficult challenges most I've So

our well. we of to people as incredible not hard of conclusion, In let's see. be Tesla you. of thousands So What I'd and possible work our tens like thank suppliers the would would and suppliers. without achieve employees thank all

that ultimately, while cost We as price, makes our that's the continue at control to will And be great company grow improving goal. an focusing quality. and can best which on as and we fast affordable products

through lot with think the who us I've to to stuff like about felt to This have -- With today. investors stuck move we never I good I optimistic more do Tesla than a more come. is I thin. thick right. that, there's thank of All future also think questions. can I'd and

Thank you, Elon.

Zachary as well. Kirkhorn, opening our think some I CFO, remarks has

Okay.

achieved health of profitability. On being Overall, our income, best our another set things financial important our note improve quarter context continues Thanks, nearly that has Two great operating QX rapidly nearly income, QX Elon all fifth Martin. sequential quarter net to double-digit margins. net mentioned. are dimensions, for to to profitability, and Yes. on as with we

to First, year than than credits are the compared business stronger last. this double to tracking more and our expectations, was regulatory we

Second, during rise grant the market and tranche result in company, CEO the as second quarter. vested the the the of cap a the third of of

expensing begun million combined expense. $XXX in roughly period tranche, have of more we Additionally, resulting one

to automotive achieving gross in On reasonable quarter margins the both view to XX.X%, it's inefficiencies business. sense increased excluding XX% that mind credits, our margin. including true our some programs Keep items a in gross shutdowns of core regulatory think get these margin, related factory it with I QX. of greater affected than XX.X% the of health to to from the materially

We manufacturing operational continue and reduce to costs. our

to cost increased at over delivered from a ongoing seeing We trend the core reduction upward of the most last beginning of year benefits which our are which of cars, recently, also strategy. XX% component under has is locally built XX% and from

-- also achieved Services are the efficiencies from feet record vehicle by and seeing benefits We by as deployments business, and approved positive in Megapack margin across the deployments, and Powerwall grow. financial the we the storage reception vehicle across Energy operations. aided fleet. used our production the and In again, improved our driven yet business products other service reliability of

filler which progress cash balance cash continuing to of highest to $X.X on billion, front. increased we're flows On deployments make our billion, and our our cash free doubled, flows, Additionally, includes $XX.X that yet.

incidents core receivables flows billion, capital Model billion, the benefit made including strengthening as Y by Austin. cash days the are working our on million progress to in operating expenses operations. of a Note of Our flows majority of our Berlin, Shanghai, and and driven inventory $X.X despite driven were that operating a $X in reduction by grew cash $XXX Capital available. days we've from

for Model already by we're Model year. their investments investments As of to previous in fully paid Fremont, this were end and expecting in these programs Y respective the Shanghai have X

have to we $X.X ample well capacity manufacturing expected spending enable and XXXX cell to Looking is driven factories, billion This investments our in-source greater by revised certain billion, future. for the to expansion increase liquidity expectations forward we which fund. including as as by cash flows for and to an scope battery XXXX, $X in up capital have

strong, on X to additional very Model remain return that and may Shanghai these scope the in expect slightly we cash be than investments Y and costs, we Fremont. in While mind location-specific investments a with also saw by Financing of capital in in Model QX, $X flows what over September. keep associated and payback longer billion offset conversions, Note reduced but early $X were the working that as currently paydowns billion XXXX. primarily use XXXX our $X.X of expecting convert XXXX we're in we in with our raise equity lines, in our billion

on focused strengthening remain the of core we fundamentals forward, the Looking business.

to aiming production tremendous made year progress conversion We've our efficiency reducing on XXXX business, tightening XXX,XXX and a despite localization, year. cycle. front half. operational We're to and increasing including also the deliveries interruptions cash are the the costs, meet the this driving earlier achieve last across higher demand, We over original of guidance our in

tight remains goal genuine company. the it's we possible this a with execution challenge, While across believe

again congratulations for Johnson, quarter Tesla year few for it leading a a great and and who in the business our great Energy to RJ year. earlier joined is Tesla to team I'll over the So, comments. hand a

Zach. you, Thank

I'd the and strong we're poised and a reaches business team to strong growth the to the storage deployments large was is Megapack QX congratulate the Energy a continue First, a will capacity. segment also for full well expand be as on for continued in like business, quarter product thank for growth rapidly and job and solar. going done. to Energy

match to through continue to We beyond. the through we more and than have ramp the and demand globe product demand supply XXXX unprecedented XXXX across

is through fossil will continue will globe. than fuel generation as in solar XXXX the cost-effective order plus Large is across which a multiple in This we cost, Our scale gigawatt-hour remove rapidly many scale. more now trend up traditional filling book storage further our is optimize displace as advanced fuel utilizing where Many returns software strategies hardware fossil true Autobidder are standalone existing as to to the storage with and and outperform generation. deployed. for real-time customers bidding well. maximize This market new continue that we locations

for and as generation. PowerWall, backup seek increased residential storage customers reliability home see we demand continued For strong

has orders. grid increase capacity We plus backup backlog the we potential have some to of fulfill and customer to need with very jurisdictions reduces This providing We're a sales watt are globally. to States, full customers customer-cited PowerWall in cost they the solar price and to to energy power lowered power. able our large incentives, associated efficient we just have costs in which continue our the or grid as In now more make leveraging capturing to the retrofit online industry. to the orders a substantially don't when $X.XX of tax storage consume soft massive services invest reduce We're do the solar lowest marketing. ordering which system residential the this United vehicle to by infrastructure, and after is back

relatively retrofit result, using company. Energy flat costs on our remained increase, including our methodology of volume capitalize to fixed and a leading business. the the the profitability entire As We're service, same to as across in backbone the business, increased efficiency technology the

Solar one on day. We're roof to better complexity, of customer continue while be Clearly, based scale efficiency. growth experience thank Roof another ahead work, one In and the Solar poised year significant demonstrated a ability exponentially Roof to I want the Energy scale strong as as over just us. strong their as believe requires we for pleased is Roof the is closing, recently installation the this and to and segment to to cost will especially on remove maximize business the times for installation. scale effects in to profitability. installation existing gained we reducing our quarter there factors. allow days is prepare still a forward the other our installation complete now, experience, and hard exciting reduced it process, to in to we've enable again a for the two enabler provides a to increasing We've focus time look Solar key which increased business. will grow installation the weather for last range of team I size, Overall,

begin with from much, everyone. say.com. Thank you very let's And questions

line Can to retail is shareholders time the start what Tesla on production? share Giga same question products the cell the XXXX at cells battery production planning is, pilot vehicle at from more in Berlin use Tesla first you'll information as Fremont? The from

to want you do that? Drew, Yes. take

support Sure. use both will can in across energy we new we Yes, as into and it facility design Berlin production XXXX to factory applications pilot in vehicle. incorporate in the And time solutions our many Fremont ramps.

Thank you very much.

which retail required Tesla's significantly taper the question, next for the is question design from tablet to number Does rates? two allow charging improve peak go Let's cell shareholders. curve? Does higher it

how power The fundamental plating helps it a doesn't in anode avoiding on Yes. Electro avoid batteries the to determines high rate overheating And limitation it's the lithium-ion anode that the and continuous plating rates, charge change more charge dense because the avoid tablet's lithium is anode. directly choice material lithium story. more architecture while on rate design problem. maximum architecture plating charge at and

Okay. Thank you very much.

fee? letting it from to is, to you upgraded FSD question cellphone broad able would to would vehicle ecosystem and companies retail in add by brand add purchases or be -- In transferred same companies third new gaming next The be to hardware? our pay It would way, loyalty. a a a their keep transfer the transfer

We'll give Yes. thought. some it

the sold are Okay. to be The constraints fourth question installations to what is, significantly? for ramp Carl? remaining solar

they're a ramping up had customer big homes, in factory from and for constraint The installers material kitting and third-party up as right talked right We've contractors trained setting on to experienced. the on We've need getting we're that we've this they so I'm progress a is the board Also, improving the The Carl, next Solar Solar is a is every source biggest fingertips. lot of lot QX, about and ramp on of Roof roofing parts has installer on great installation. continuing enough in I'm engineering at job Roof Yes. hire. now future well on as opportunity the this their site. the their the flow that Solar growth. on response the roof Roof and in installations which packaging, made

Thank you, Carl.

think in about to way my opinion. the that here's mean, product, I

to than in want year. a Solar we've obvious decade the That's with say, a will world your the got This where want. think And a you every the around When Roof future, like? energy. now, next you life What future make and look are neighborhood do energy future look with future way to to do we that what and you want? roofs better resilient become you and want? think killer a from do beautiful product. is going I what tough regular What lab The roof products generating have You are I better?

referred Thank ever most manufacturing shareholders start-ups. as be recently over suppose Other spinning from is, you. And you years? cars, you the next a seven to valuable last electric business question the you to Tesla? five of any what them do retail than from of will out conglomerate units Tesla within Tesla the envision Could

about think major is a Tesla new there's a probably is big -- startup. in in dozen startup. this excess Well, effectively yes, Every plant line I of Every today. a product Tesla. new startups

learn And startups. service Other service. before sometimes, since But a OEMs, and companies, few sales to frankly, then. times even have like own sales things their they lesson and a car we don't are

have our to So we service create network.

our create sales network. and to delivery have We

don't to languages. have I We do know, multiple this in, XX countries,

really don't even team much people that technology company. applications the is the writes runs internal core that So about know our

understand Like dependent those substantial. a system of internal great big is is not the the the nervous hat the to what operating means, are the this well Tesla on the insurance system, my this of Obviously, very are system, enterprise software. like And who team. work extremely applications fundamental. We for operating is company, They deal.

as But very of insurance of XX%, somebody can statistical, be specific. it could a being car will. people choose of does insurance. cost of our frankly. the group, I It's with about XX% to instead better the feedback well better. and to less be have we've before, not So obviously, And a be value lot going And think talked business, much

whole computer computer chargers, Tesla design, a The start and for network The designing startup. the don't is Supercharger So start-up. unit, understand why electronics motors, Obviously the about that think been slow was manufacturing out. Designing of thing, complexity. that had Yes. so think thing now. own our far, is would whole good. own chain it's our up. well, before. was a autonomy don't so the are people startups. but making they chips chip just you? so them added our like it a is we sales I not a a We're grave startup. didn't really of bit spend And doing power -- of we've -- you that I fail, I to start-ups, sounds And any do a I anything mean, with maybe the No think That have just like, we've plans far, some

Thank you very much.

institutional a so through as ability The go question you money basically for vehicles to insurance ride-hailing of enabling version Let's one via investor network, car could is, the questions. to to them, their rent number to bridge give customers leverage thereby the the app, Toro. out proprietary product make the the

we're system. on think the enabling robotaxi We focused

thing can car where basically you quite or robotaxi you. the So, can -- autonomous subset like have you just of small for robocar really that's a overall the get

to you the with You've and got car have friends share family.

or You remove from the can it network. add

the You of It's fleet the mean, thing. just can you an you're Uber could if of get shepherd more tending type way network. of have more, driver, This a leverage. it or a managing XX sort entirely Lyft cars. you I be flock in be like seems like

difficult, we're Yes. that. Lyft that's sort going think So do autonomous to elements It sort That network. and of could of Airbnb. just has we wouldn't Uber, an focused having I on but be just be of -- very

accounts advances use roughly system? Thank carbon on magnitude Today's Y? same for find you. and sexy. also profoundly question is, HVAC domestic energy the a aircon Could second with Could the emissions are on And of road the residential transport. use in as elaborate boilers you institutionals units from

Yes.

Drew. ahead, Go Yes.

Elon? Model X so in, the to of cooling I certainly moving to on mean, definitely and C. way how water I one the going the heat and was system XX outside powertrain in applicable applicable. of integrated all And from a that's anywhere your say, to XX things now the focused Y tightly to house, negative Model the and like the home the build capable battery, environment, heating pump learning with to system cabin, so just really, home I was down needs we C, temperatures, and of ambient think

Yes, absolutely.

so the thermal pump and an course. with be use in reservoir to applied as I think electric for of a Same thing the like very heat pack both the car, -- heat of the -- a is and could home batteries, able the back significant. itself, water to being energy heater,

in actually that an I to don't something integrated would package. air think system generation like that a be tight heating have. think So, purification potential a for good that power storage, home there's prototype conceptually, cooling, probably but Canada's filtration, I is anything, or have really water We

Thank you.

you that The meeting reduce margin the if third question requires achieving still targets your from from autos double-digit low you prices targets volume institutionals reductions preclude price business, long-term is, your stated accordingly? for will

is our Well, no for can't more and or any they the from is. we bank to proposition real have enough If money too want it's in simply people to out buy expensive is don't it account, separate important money. matter make affordability value too what car then value cars product affordable, expensive, the given the

important it product, people such for not think lack it. prices the have in that literally lack to is to we affordability. money to for just but can desire we do for order do our I a enough So buy lower

bit so have every get, to them our people. of products, in also we to better bring are over of so improve reach year. our reach of affordability hopefully, the out cost they more a improve We time, And little Obviously, but of want we not production.

better. comically to lot these margins, in you small going margins all a Sometimes when in pretty of factor terms are And of look autonomy.

that. things mean, add a I'll moving to as I much doubt, to we're reasonably can. forward Without as Two push volume we Yes.

S-curve how of like. kind line and time So incremental the looks Elon talked factories the to earlier

we're speed much as ahead forward moving we with. with move reasonably so volume as full And can

and period margins during if despite is, that we journey of just reductions number last the have we time, years, as stable X.X price the period you grown gross OpEx fairly look well. over company make the time that of I'd comment a over of of cut at second have and grown The volumes

mentioned the the I Elon the key what of so is And have mean, we to affordability vehicle. here. improve

to COGS, progress make the improve We over of to of which value think, X.X last continue quite the at but years, demonstrated and cost vehicles also of not the same structure the have I only improving we've successfully time. OpEx, the

to the cost making better. focused of And the the what to cars we're volume. the car, reducing So we're that's sell formula on. the addition in That's

very you question start institutionals ramping The Thank again? much. point battery internal fourth what to you have expect from at capacity enough external is, or to do up stationary storage deployments

lot. Yes. We're storage stationary ramping up a

So it's I double mean, it's approximately doubling as year. approximately next we expect,

that that's So hopefully, good. accelerate years pretty And come. can we in to

this doubling approximately And it year, too.

So the growth...

the yes, I doubling yes. we'll you and if turning of universe, cells. Jupiter things, the keep Yes, soon, mean, into start mass need pretty you just to hit

to And What is, hard. place Texas? Y and not ability to hit production production from volume you you might ensure contingencies the happen. encounter is Berlin question have Delays that your targets will your manufacturing you last Model from renting bottlenecks that institutionals preclude internal do in in while cell

Yes.

think on we're it very, that trying small. not internal ramp it's So almost 'XX. there's we're so 'XX, XXXX but no dependent will It's production. to very on help in The internal for dependency I production -- cell cell our us derisk to

design here in both of on and pilot can located that rapidly And scale-up equipment. facility to manufacturing the one the was so iterate we production reasons to the itself, system challenges, derisk the we provide rapid product our the manufacturing Fremont, feedback of why

Yes.

will in pretty pilot I lines the top it -- XX on big Earth, Our cell be go. pilot It's believe. as is factories line

Yes. That's true.

one. so. subscale I'll Yes

much. analysts now Thank can you Sherry? online. And go to questions from very we

Please you. Thank Lache first Rod Our [Operator with question Research. ahead. come Instructions] Wolfe will go from

Hi, everybody.

you $X.X from something your those million with you could a hit of about ask you into the little be billion $X extra Day, to goals. if more more by by us into give like us would a year there, XXXX, maybe XX bit and Battery that maybe bit per required to context? little approaching insight get like vehicles XXXX, the wanted looked investment Just just be to midterm where put to like targets share target, Could billion you a

mean, every that year, predict through tricky year has -- one if doubling you I plus/minus or Yes. to huge is just think a thing with exponential then even things number. one the effect trying midway XX%, things shift on growing the are I it if

on -- you or it exceeded but like, a undershot, giant going actually massively S-curve. sounds is and So it's what's wow, massively either

So gigantic big that integrate of S-curves, bunch pretty a into whole a S-curve.

per -- that X% year. of to at to say the the why we out year. to switching not it's I X% And we'll we're world. we're would it's we vehicles. good million seem not I'm saying difficult that's that because mean least predict If global really goal I'm fleet fuel So of vehicles. X% the vehicles we're does it's that sure But replacing change -- mean, the middle. it changing the a we're hit that not for of have sure make XX fossil like per that And unless global difficult can argument

as to say. million see that looks -- so billion fleet bigger The like we the from. So will and vehicles, currently. XXXX and two That It's grow $XX year global XX in about will per It's that's like XX future. target what the -- much to hard a probably million an growing, bit vehicle on slide in a S-curve as we fleet give you is number insight X% comes X it the It's where million map like. the vehicle global just around which have. of is

of metal become that? into just repurpose could your perspective just technology? you putting And place solid-state were to lithium able you're to what for if Okay. on And along pass maybe viable, secondly, be just in changes most would you

part, could change first answering electrolyte that aspects agnostic fairly -- we subary cathode, the Yes. the all upgrade on we cell. mean, the is kind and change, the It's -- of anode, thing. production I cell system and of will

and manganese could, we make or or nickel for So that. ion phosphate like -- example, something quite adaptable. It's

-- you're I not it's not anode lithium much, a great lithium, too pure to as because say got could on you it and you the as about. it. say got side much room and have play it's the -- you gaining so Yes. But out the wouldn't anode on got more if Volumetrically, is may So just just somewhere, like for lithium, that all nothing sound. go

is is metal into the form in than dense lithium less it silicon. Yes, volumetrically intercolated pure

but kind cost showed our we're kilowatt it's $X or that's to the And about in understand, the then, per $X we hard presentation, of hour. talking anode is truth. only as total So that

material value anode removing the So the isn’t high either. super of, like,

Elon. agree, fully I yes, So,

anode But that pure that if exactly. is be no would would to move, Yes, right the it simply were lithium that announce -- problem. a

Right. Agreed.

Thank right. All you.

Thank please? you. next The question,

Our Rusch go Colin Please, come ahead. will question with next Oppenheimer. from

so much guys. Thanks

You're processes. moving which in-house in-sourcing versus make other bit number some about planning that from to a talking little Can equipment equipment be you you're and you’d about yourself you're that a buying the talk of folks? processes

talking you are selling -- cell the -- or Sorry, about for ? and manufacturing

in manufacturing in-house pieces sure, number the well that processes and planning on of the make as equipment but of talked a versus as Cell mentioned to which coming about buying? you talking about, terms molds budget for you're earlier, that yourself CapEx you

company. auto compared Well, Tesla is companies mean, I to any Okay. almost absurdly integrated or other basically vertically

ourselves. We technology massive have amount a built make machine. the that internal manufacturing we We of literally

this quite because it design not then which Tesla, machine. but copying us, catalog engineering. we a fact, we It's what to actually This thing, what all will to that make -- do we're like, it's make things difficult, are In make, you difficult makes people opposed quite is to the want the can't okay, that that copy designed. machine we

one Tesla. can't You of one go I’ll out pick supplier get I’ll then catalog, of those machine, on up the machine, now just, that

it. You is at catalog. no there have to Look --

understood. do it's something take them machinery is a and else. then internally. we're to if yes, of take This making we going and doing that the crazy those that made It people here. away something like gets amount outsource we're Tesla less. frankly, made outsource want machine, we be to we like And would -- to machine. -- great. that we carried don't the no, get would get if the we we could no, is not outsource, have machine, then quite made That -- Because So we're But, well just

you to like it. know we've like, sense just move, progress it. just walk hey, we machines don't trying but this And, and got yes, make the nobody's If to get around I a if got for the if you that we're smart just know I a factory, make need, is could

So do. we

then And changed. the sheet just second around, is really question balance the Okay. has really

run as past? accelerate demand point. that How You your move And, to you this those the where into obviously, guys financials. out have of about capital the awfully some cost more some at and little you've bit to around enable a that as ability there's access been your to drive a in of are cushion from changing trying products? and to lot insurance leverage and well ownership opportunities you lean thinking guys of you've Is other as got

I internal a mean Yes, something like our by team. good a is example made that's of applications insurance product basically

money all calculate internally risk. frankly. that So, fastest the has don't insurance product wasting to our really we at current waste rate to so it. too pretty application. return. can spend This it's spend possibly the waste spend the much the -- basically it, hard money without it, just car, or low software is data, we're just it trying We're internal at not of we know. made to very -- It's and I high but quite there's trying it connect the like not capital, look and plan and to That's

spend waste than value of way try We possible more trying much as too we it but difficult. to waste costs. of sensible and that is this to certainly not is But in will some very it, otherwise, to money quickly a yields it, just as -- waste a

you. Thank

Please come question with ahead. Jonas Morgan Stanley. Adam from go will next Our

were Hey, for question the use help to LiDAR. in totally would If training Elon. LiDAR Tesla free, on your significantly on A neural FSD? your you want cars near-term? of tech that Would network it

mean free, probably I totally not.

I -- free, probably if think it's wouldn't I think we even it put on.

Okay.

advice electric or of transport give be some Amazon endeavor? in and network an would Zuk, to then. through What but some appears his ilk Bezos follow-up cetera. Let's investing also autonomous Jeff Aurora, organic Rivian, et investments, you building

a to the on care much is road you lot I you Well, because mean need this, money don't entire you sure focus obviously system to for think if of on is guess, I in. past know autonomy, to vote cares investing vision I about he lot I have -- based but optical. he a about how need

generally past that have self-driving you is a optical sell to pass have system to you solve So, self-driving. for And once a solution. you've optical, solved

else? with So, anything why bother

Thank Elon.

Welcome.

Thank the question you. We'll please. next to go

New question Street come Please next ahead. Ferragu Research. Our will with go Pierre from

simple very taking for one. question. A my thanks Hey

that haven't do hitting When that see today. fast the the should the follow-up. I much expect road? how You a like I looking product have ramp how the was like Then of ramp And is volumes? product to quick about we Cybertruck wondering And talked you like?

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lot So, there's what was like improvements a to unveiled. compared small

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cleaner next of good, deliveries next it some Cybertruck able the end towards we'll think, a to looks of well, it goes Although If yes. also standpoint. be do Yes. I end from -- year, towards the

well. So XXXX, deliveries would some year, there's say the deliveries a to of probably of go end I it's and things difficult in towards if next predict. lot

now of is like. get going look to to how And year sense a I'm Okay. trying next

you're look going units And it's Shanghai, this on production I an capacity in at year, your XXX,XXX if the going of open annualized at almost capacity basis. So increase Berlin. to to end be

You say today you would open Austin as well.

million So above you're probably to end X year going units. the

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Yes. We'll...

Go Drew. ahead,

after on XXXX call. guidance earnings next provide we'll Yes,

Yes. vicinity. it's mean, that I in

You're a pro.

Thank you.

you. Thank

will Levy Suisse. go come from Crédit next question Please Dan with Our ahead.

Hi. Thank Good you. evening.

X more and to to you on a give wanted Just with where relative could quarter Model directionally Model the higher then X? the start Y was Was gross just color a this Just the volume? Or little on takes purely and there in gross just quarter. function question us gross in maybe Fremont a quarter. margin was Model margin the in quarter. puts also FSD the China on And margin Zach, a sense of the of revenues?

we and Shanghai strength margins. range not to to every seeing not the just Y is million But Sure. too margins. for far Model to reduction past On Model guided we're Fremont Fremont what moving of bit of continued has amount to Y the off that. that really cost X there It's question the Model good down quite we're release. Model in there. the that should $XX also we're material was Model be product about X strength comes a FSD, in quite ramp also But the in strength costs. product. down, With seeing come as small X respect in of It's make with cost revenue board that. And as coming quarter. is cost across a margins, Fremont progress there, generally continues in particularly across margin and quickly a Model cost, we've Y your Shanghai X Y in target down it's Model this, seeing equivalent built not roughly S in also and deferred

the for the products. it a for think quarter, quite overall, was So I story good

you your a Thanks. cut wanted price and can Great. the been, in about cut LFP, costs generally strategy good in then strategy And seeing I a think your what And we're just to I that has of volume. to China extra ask that's that's follow-up, and I think use example. Europe. you And generate and as allows the you

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different say we is again. a a in are not But on possibly prioritize prioritize. position would we your sometime I that a of for Yes. -- we think so But the I product There where generally different different are get fast look depending the need we're to yes, things position do I been now to what are the question. of we're as I that our production. there's at like, mean, is, in question needing changes send I think, we trying the going markets. are different in that can routing we what where world made, position to where And prioritizing what mean, gets in to upon factors as we've to production when logistics in up higher, sentiment

Okay.

Let's go please. to next question,

Our with next question Please will Munster Ventures. Loup ahead. go come from Gene

A evening. on Semi. Good question

If maybe autonomy Megachargers, just think -- the the you and beyond you just could Semi? you walk development of us envision how how is through about broader And Tesla it what trucking industry for EV? impacting just platoon

you that? Jerome, actually, do to answer want Well,

Yes.

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So drive than can your the that, during break, driving much that a next looking for until as Semi as you something during break, can the achieve yes. that so powerful fast we're more charging time essentially

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ahead. go Sorry,

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Yes.

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X-ish than passenger more six a vehicle, to four times. it's, So times

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vehicles, we stationary storage, more just we So lines. need more can do more more We cells. so vehicle more that cells, need

that this this I talked question just, robotaxi think could moving complement new longer that's makes material freight Or is and A about Semi markets? have all you and about to business? to impacting How be you humans that in impact around. you've -- as do something sense. mean, think to you you a think It how tech kind nice term? of of think going is do your a about

like I go transport go autonomous. think, really long-term, Yes. all will will Yes. all I sure. But autonomous. autonomous. transport material Horses it's for mean, are very

increase So way. some

be it will pretty significant. So

is the technology we're that we're Semi vehicles. identical putting to putting other in what in The

Yes. It's just and bigger more motors.

you. Thank

next ahead. Our go Ben question from Kallo will come Baird. Please with

getting old one you do of is think what Elon, let's OEMs or up them -- the, us. just call question. and biggest issues what? do two my look school you? with Thanks. what catching the you Rivian taking ahead mentioned it for by structural of and like issue want What to for or or with Is world thanks you it, envision structural And that? their Tesla together the Tesla we you Hey, then the or act like

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Thank you.

Lets go the please. last to question

will with ahead. Please And come question final from go Houchois Jefferies. Philippe today our

you for questions. X. taking thank Yes, got I've my

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Yes.

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it's residential wholesale to as the this well seeing going globe. you're as And the trend level. across level happening So be at the

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like of large Australia, largest clarification, plant And plant just in power in that that power power operate the in we battery a market. like generate -- plant the revenue point and to continue

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Thank you I your three again very the speak appreciate to Unfortunately, about you Q&A questions, in we great have is today. Thank the for you. and much. all we'll months. all time Goodbye. this

you. Thank

gentlemen, Ladies you your concludes participation. today's this Thank conference call. and for

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