Tesla (TSLA) 20 Oct 222022 Q3 Earnings call transcript

Good afternoon, everyone and welcome to Tesla’s Third Quarter 2022 Q&A Webcast. My name is Martin Viecha, VP of Investor Relations and I am joined today by Elon Musk, Zachary Kirkhorn and a number of other executives.

Our Q3 results were announced at about 3:00 p.m. Central Time in the update deck we published at the same link as this webcast.

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

Elon call, Elon? queue. During to limit jump But Please the before one of to button Q&A, follow-up. yourself raise one we please hand the has and join portion remarks. Q&A use session some today’s opening question the into question

you, Martin. Thank

recap. And QX approached levels. $X QX another cash So record industry-leading XX many just a QX $X to surpassed on was We past the operating months. quarter do and flow in in billion margin our our billion had reach XX%. free

As our ramp, record-breaking looking factories we’re forward to QX. a

looks year. like end of wood, an on epic have knock we’ll really, it So

extremely So, QX looking good. is

this another Austin ramp, X,XXX. the made ramping a yesterday’s week production On and yesterday, would we Giga very Berlin or hold rapidly. in Texas very in extrapolated rate, be Giga is of cars it quality reach soon. good And milestone with fact, Giga just X,XXX milestone achieved should

of production cells Our compared in quarter. previous has to the QX XXXX tripled

months. it cars is significant We rapid And start output the we our traction production growing of portion and in in to expect coming rapidly, Texas XXXX are its incorporating the having it and a cell. on gaining finally be in here

Fremont. And which continues in great we QX. factory raising second have line our reached once Fremont record show generation of in manufacturing in to keep also to team production Texas, XXXX along We original The production for with equipment progress intend Fremont. pilot our in again cells

of of AI on we improvements September, self-driving Regarding high drove first software. Autopilot, computer released updates second end robot, the Optimus full our at Day range our and the and our training hosted of prototype

this mode, Our to self-driving vehicles number miles driven and nearly in now Beta have exponentially. continues XX full grow

of influx and post with massive seen and scientist resume. engineer Our we’ve was a world-class Day that artificial to AI recruiting, intelligence goal

researchers it has world. enough So, can’t from technologists among the interest Tesla AI the emphasize become in the amount that very it the best think world the this best. to the clear tremendous a AI I smartest finally of generated in of is because I some of importance

this to to full self-driving in wide So, release a quarter, America. expect we go of Beta North

has have So, FSD now. access will full Beta about anyone -- this probably self-driving, who year, ordered Beta to full the a month program a self-driving from

and then available and a who that -- obviously, a car immediately full have -- to buys So them. any anyone purchases option, will new self-driving

seeing actually Beta. we’re in when is than car the mode not, safety to going that safety is a seeing wide FSD for the key is it the is a So, we’re which threshold significantly when greater

can’t demand see, recent demand I and that every excellent with we can car respect make We’ve QX, got questions about weeks. Let’s enough, a have expect as in we future for as we see. far of into to we lot demand. emphasize sell for to

the make strong. full delivering keeping and factories running speed, we’re are operating and margins we every So, at car

vehicles on total road. the billion only and on X.X We the cars the about trucks percentage are we the small very have a million. Of still of X road,

X% long reach go So, even to global fleet. got of the way we’ve to a

want one we -- Let’s gotten buybacks. year, do about certainly based But billion, it’s next billion questions Board even the the even in ability obviously downside extensively year, about things, difficult us This has to given it I members Twitter to billion Board approval. if $XX our a pending for see. but many what $X And -- on do idea that debated have and a is the the a right possible people of on to I buybacks. a certainly the thinks on to buyback, Based sense to next to every review $XX get buyback. on is buyback. The $X but scenario Board a we do buyback buyback at through Board work We’ve order very level. many questions think still billion -- makes do to process the generally year of

it’s So, some meaningful buyback. do we’ll that likely

the So, enough investors, in on conclusion, with I term, think long-time revolve and Tesla. it’s short long while emphasize to obviously market it around teams with important investors this term. the I focus the very recognize can’t

long-term possible the local was said, it we Apple be was has company, I that ago, market. it more of now, years billion. extremely but around I in have indeed I highest I fact, exceed said Apple’s the Tesla to been $XXX the least think and think, time, And thought worth at market then And call, went, current I You at And that execution, and than And and incredible ups have at market several think our for good. earnings trend Tesla your the can Apple’s we market which some sort time. that. it I downs, cap opinion on cap. passed required Apple, in was achieve I far luck, or cap did

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we incredible have product an So, portfolio.

earth, of exciting some the portfolio of any you’ve about, most of haven’t. on I company we’ve product think you got some which heard which

final the for in We’re lap Cybertruck.

have as production lot United line Giga in vertically batteries, at to And that. as hours a robotaxi to in at progress gigawatt to building refining, here a possible design. the and integrated, -- speed Texas moving Cybertruck the moving States, X,XXX anode-cathode, with capacity platform year achieve we’re We’re making top respect then, to of a we’re do of fast

exciting future. an be future really team and possible this None incredibly it’s I So the we without incredible Tesla. unprecedented an at that of would here have think

So, Tesla engineers, like and a give to of employees, team. whole huge the shout-out executives factory all to our I’d

guys rock. You

the making it Thank You’re ones happen. Thank you. you, everyone.

Zach you as much. some well. Thank opening very remarks And has

Yes. Thanks, Martin.

our achieving Just at gross want XX.X%. On third leverage. in margin on vehicle the just operating operating deployments automotive Tesla Operating production in theme, to quarter. profitability, of yet, storage margin improvements with is team congratulate our continue I thank the margin with Elon’s record to and automotive deliveries, and GAAP XX.X% was best for one

margins car ramp that profitability. to However, have strongest and margins, each Berlin QX. weighed our regulatory Austin while Berlin, you positively auto costs Berlin credits if Austin on and is yet particularly gross our our XX%. growing, and would in small operating compare and and Removing Austin margin Note we have nearly been would it to build been and contributing

volumes experience this associated this profitability, Megapack materials, We as and strongest In our also prior length conditions, of gross on at was for business, energy achieved discussed foreign big quarter. continue macroeconomic to we’ve our part yet record with headwinds of a exchange Powerwall past raw logistics On primarily margin calls. by we driven products. and profit particular,

on quarter, in flows in cars free capital. which end of cash negative the impact a Our an transit also at despite working has were increase a the record

Europe Europe. transit, on particularly to in we’ve on ships anticipate. in Shanghai logistics experience cars for from Xnd, on trucking certain we of This didn’t capacity U.S. is October started and our Specifically noted limits within present as parts and press outbound the to which release issue local

operating concentrations building final Our the pattern of logistics by delivery historical of weeks region leads needs to batch outbound in each quarter. of extreme

deliveries in final this September two and of our roughly QX put to weeks. one-third the occurred perspective, Just two-thirds in in

a logistics. our builds smooth we’ve to As reduce to for quarter the peak the result, outbound needs begun throughout regional

costs the customers. expect to experience simplify and our reduce We our of improve operations, this

As we supply plans annual we our tracking in this look year, on for which show are ahead, although XX% are risks control. production chain that growth the track we’re our beyond

costs an their just what build again, XX% should margins. are a you. to than as in customers cars Berlin cars continue and be in in maintaining the upon of to cars expect and arrival ramp This those will shortly growth transit side, due on many as while as also to that, just in to will gap above. at delivery less the Thank weigh the expect operating to margins, you QX. mentioned, and deliveries Elon transit although delivered we we end On expect year, QX, their the as destination we the production do QX. to in between continuing be noted, Boston under strong to means we increase be possible in impact And saw

let’s to And much. go very Thank you questions. shareholder the first

you and consumer shareholder under Inflation those first through each to to battery of tax credit the thresholds The existing XXXX Act, meet “Given for your stringent is, supply and content can and Tesla’s in chain?” requirements speak eligibility ability XXXX question XXXX, the assembly planned Reduction

level, mean, the requirements. we do just high at think fully I I’d to IRA’s a want to say, yes, you meet Well, expect I Do add?

towards Inflation We while the there’s the States. the in also accelerating Yes. battery chain view scaling a that automation, supply United significant large of at Reduction boost passing Act

a is eligibility significant detailed We believe such of and criteria, difficult very to expect storage Until the guidance publish time, it’s to positioned of share the we the that vehicles. to solar year. determine well by Tesla capture also end Treasury fully electric for but

go -- we’re in Yes, vertically said earlier, the to fast like the as hours of to said, to get year possible basically production to like a going metal gigawatt I I as X,XXX we’re humanly pedal U.S. integrated.

you. Thank

to the the U.S. you the trends, can question on outside backlog especially is, next China?” in question. the especially go intake of updates recent next and Let’s and order “What The offer

recession into is by I -- down it’s which continuing as is property the and would should, Demand vehicle think the they’ll than be. -- more market a China are although they grow experiencing earlier, far otherwise sorts is bring to actually pretty eventually U.S. The interest confident again. from America -- than year as extremely a the isn’t mostly. we a in of production, rates can North Europe there’s recession XX% future our as of is market good QX, deliveries we realize energy. higher raising average Fed we adverse simply see. has But that sorts, it and of -- by said -- but health, little sales is driven definitely anticipate property on Well, great a a And I of back

Thank you.

we’re Actually so. one and end smooth deliveries production because XX% -- caveat, I of should at to trying rate out have by say, every this the quarter, the delivery crazy not growing deliveries year every

wave the boats, big. because it of weren’t running enough just weren’t out trains, carriers enough actually there fact, -- there fundamentally we’re In enough support too car got there to weren’t

So, them whether smooth of not, we out the to there intra-quarter like actually around. we or aren’t delivery transportation cars just have enough to move it because objects

question to for Thank the demand, prices vehicle There is, still there. you next “Do is need or foreseeable or Chinese future? it you. you for a demand Is the true are market stable, or in cut remained annualized XX% specifically questions growth rising?” this to offer expect Do sustain three market? also domestic to The expect any has incentives even

like sort level and that of that It on lot rates growth is best want more and production We think or a rate. will revenue we year the of grow to little might of little knowledge, more. high Well, said, see a our potential at compound we I what here. a some a growth greater annual we believe some on to then or be XX%. XX% out-year of deliveries -- our In are we is continue Tesla occasionally that to a planning, annual maybe possible a would be excess years in less, focus

future “Can new next about powertrain for tell beyond models especially and vehicle models? and product of Thank you. more FSD, The you us existing question interior map and the is, road

guys, but We who Yes. future product Sorry, could, can’t like on we wants? announcement. jumping on,

continuing... Committed to

committed -- committed Yes. to continuous Tesla, we’ll been be we’ve continuous obviously yes. growth. improvement. always to But At are also we Yes,

like, me the improving keep a asked like we have should just car, I might buy now because friends when is there So, I’m cars.

Tesla. latest always There’s

big Yes, Model There’s and nothing technology yes, in the there’s my I are think the close, really earth. now by on like the still best -- and way, latest again, Plaid. I every Plaid Tesla. opinion. And even cars we X have some S don’t upgrade, the -- do

one. try Just Epic.

of will because hearing Giga What The this next in production Berlin “We you. plans crisis are Thank question from keep Tesla’s Germany is, of this?” delays to there power any in dire combat cuts? energy be in ramp-up winter. And

can that. take I Yes,

this on points question. I think two

is any to just term production based term, period a is Company. we Even see the first for risk did go have time, doesn’t the of The this on this that a the impact upon we know, down if don’t as near Company. that everything it of on long large

-- we don’t no will indication to Germany. production whatsoever we have in have cut But we that our

place in are put through the supply well. of we And our plans, backup Nearly we’re No. and chain all well. prepared as suppliers as working

how about. terribly that worried plays this not something we’re we’ll see So, but out, it’s

update Thank you. can next is production What the initial And design?” production and X pricing we target? “How the final on is, is for planning expect question the When an going Cybertruck? Phase

Giga Cybertruck. I here mean, preparations as earlier, we’d Elon Texas for in be said -- facilities

body battery next existing... We’re We enter still all on track middle started of to year. data production of builds the in our of in the early

I When beta? drop should my

well, of ramping and into and continue That’s year XXXX. In we the a going next through weeks. end up few

going -- going sick. be level. of the to sick is be That Yes, a Great. famer, and car hall is next to

expected, took that the were few which longer got force are global supply like way, insane it FedEx, everyone. Sorry, in than a there but chain shortages if majeures like things

Right. Thank you.

of Tesla Semi, Of course. course. There’s

up handing A over max our there Class truck. be Semi, truck. which Semis ramping I’ll Tesla on to heavy heavy Pepsi production Tesla we’ll be -- a is we will person. in production a Xst. Class December the And of So, That’s A truck, low, first begin

to cargo No sacrifice capacity.

very Yes, cargo range. XXX-mile to sacrifice important, exactly, no capacity,

stare up. cargo. of make with looking But excellent. to ground. the A answer, literally. impossible with and hour tell, ask, you number cargo mile, a long-range assumptions what to And miles kilogram your Not the Just then it’s sure. per Yes, truck. It’s not like, Yes, Class clear, can’t and cargo. no, miles me then, I’m long-range the be at even And people blank I numbers, a table. number. say well, look with with what point heavy level was I’ll not hydrogen. and and It’s XXX on hours heavy-duty a is, -- XXX about the truck [indiscernible] it’s what the they are It’s a that’s for no, times

You need up hydrogen for year. we’ll Semi through heavy ramping be And don’t truck. production obviously next

knows everyone to point, think this it year I about As at up takes ramp production. a

in want these in beyond North to to exact So, passenger -- see for And vehicle. Tesla we North we’ll don’t expect I for America. units significant XXXX we’re say -- obviously, aiming sell tentatively expand they’re prices, Semi the And much would XX,XXX a America. but more than

nature, several with trucks So, this would be Ys. heavy a few worth Model of thousand it

is, you. next And XXXX And XXXX how change XXXXs vehicles cell progress Thank get next the in determine The what the factors cells? versus whether year? that question ramp? what the of is will

we quarter-over-quarter, Total going Yes, said. output week quarter, ramp production and quarter. is as cells car tracking is Xx as is this up well, exceed to X,XXX said Elon per last

North production mentioned. Our as and focus ramp expanding America, cost XXX% in capacity is now from to further shifting also Elon

factory sure the versus and while our how learn And is really new still as factories, enough XXXX here we sort is field changeover in XXXX shift that in going minimize proceeds product the ramp attempt scales to to product we making factory to and complexity of overall Texas. performing. the into XXXX, get On mix it

exponentially. of is growing going production XXXX well. Basically, Right. And yes, ramp it’s

a be major pack just future. just to looking going this at -- the We’re in

[Indiscernible]

of is hours like on to of a strive Yes. be not -- production in towards United [indiscernible], said, And will alone annualized our year including Tesla, I by gigawatt that. we’re States goal top X,XXX

goal. to We our XXX hours to need XXX terawatt to get accomplish

hours and calculation or there’s terawatt for stationary XXX,XXX to both XXX,XXX to energy, XXX hours. is transition XXX sustainable our -- vehicles to Yes, roughly gigawatt to

like lot go lot, when assembling one tower you’re So well, of terawatt a hours to a by.

Yes.

well. but iron On think iron be figure cathode The will to probably the it’s cathodes they maybe iron much wildcard out, and manganese then to the as some the -- it very, side and be scale high as hard very iron -- percentages -- exact probably we tonnage call, are most twice can And there’s of as more. then nickel.

supplies. pursuing at more aggressively note, on yes, can a North that American we’re how And -- talk future that about we date. iron And

already Semi The we Thank next the which you. truck, question addressed. was on

So could a if the I’m you recession, one. and skip including new alternatives? talk how to we going to demand to prolonged flexibility, stimulation factory about Can Tesla productivity next support were prioritization, investment versus enter adjust factory product measures expansion, service new cost infrastructure,

rain to metal Well, shine. to pedal be come very the frank, we’re or

So, are or not our meaningful way, we not in reducing production a recession. recession

point X% the It’s in. come

Yes, exactly.

foolish new electric car at and because of the think very realizes point is it’s that to at the towards be that vehicles everyone’s to a this car I value low. actually public, So going that large, buy residual gasoline moving gasoline

made good certainly have say basically a But large people earth electric generation very So, I the I transitioning think the part recession solar pack to to both wind buffer proof, a in battery you to because recession then, move stationary cars. and it’s be in And from sustainable, wouldn’t cars power. the in gasoline we have to decision it’s away spot. need but to has -- resilient with

XX/X have you wind because travel doesn’t -- the time. So, go power

actually the a XXX% stationary cars by more we year, XXX% faster that storage growing like also than So energy lot. a to storage, business, -- see

to Just add you Martin. before jump in,

we Supercharger I dig of point, think cash forecasted would lineup. our mean, where can downside company, our quite we withstand before lot cash balance a is, Elon’s capital are plans, as is, mean to product margins echo into our to expansion, Just generation a our I where what I have

to opportunity, real Elon I has aggressive the And over forward, is think, handful well for the has quite done mentioned. last quarters. as most Company a in the business press this So, way, of

XXXX meaningful generate let’s we recession that… out is try year. brutal then, to get model Even cash. of And Yes. out a we Once you say, like,

led a third of goods released? Tesla’s question, with to you and could platform Tesla’s reduction second cost Thank very X level platform last to see X is Great. cost progression When let’s And Y, achieve? XX% much. S and you of the sold to the sold. with go being in from which And what do investor first the of reduction platform you goods

Well, development for we primary mean, vehicle the new for point, dates, but At exact and is don’t Semi. -- engineering want the a I to focus we’ve our of obviously. this Cybertrucks team, done this talk

going So, into all it’s about be which our everything on, of But we’re will, the and that probably to times, from many -- forward other obviously, a I production mean, said will we become the to which it you’ve vehicles be be obviously what platform. Y, learned us cost we smaller, we’re X certainly Semi against is vehicle, will X, next-generation working and Y X, as clear. It of and to think, -- combined. we’re X-for-X exceed certainly I take Cybertruck the S, target. on platform. But

So, to again. we’re of takes us to like, Model [indiscernible] effort exactly to what amount That’s take trying currently how number two two. we’re we that X. get going the for cars It’s that make to XX% make one

Yes. Effort costs.

Yes…

half the the space. Half floor loss, factory the half past,

that where wasn’t see including output. is that can some much we massive a luck extremely as in We’re with I said to be the -- I work Apple I combined, difficult should to mention done. And By of Optimus. path, this I -- required, the hard get as Tesla twice way, that Aramco now probably and very path believe and when execution amount Saudi incredible a do

you. Thank

questions Let’s analyst next. go to

go and Morgan comes ahead Jonas from The first from question unmute. Stanley. Adam, Adam

Great. hear you me? Can

Yes.

Yes.

vertically would mining? you integrating into my consider Elon, question. That’s So first

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Can my My laws Elon. to what is States, think or going hour Thanks. Thanks, to vertically you that? in could guess, allow to I be billion terawatt X Okay. need would the for you that change follow-up States? United $XXX question in of this is, integrated. the your permitting message would Kind price the manufacturing with what of And U.S. do terawatt you What’s that? next? administration hour? a do under do of

think which -- that critical be senior And permitting we I Well, to the I conversations with government whatnot. be have we’ve would message process should number Congress a and White the say, the energy that is an mean, be is had for actually should I government to should future. there leaders, there sustainable suggestion expedited anything House, that of a

does So, sense a sustainable Coal future, not same and coal mine can lithium in almost like local with the disturbance to like to by it environment. no lithium way, And category. mine doesn’t in energy a the you lithium the extract does. make battery the put

it’s So, ugly, actually situation. mine nasty not

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take call, elements get the into there. the think will go of the this ready as are go battery that supply practical details what chain on seeing all not we’re improvements I redesign to -- probably it cell. whole we But to is and earnings of into what financial we

the figuring capital level will think net which would to than less what of efficiencies. out think. We’re required much be people that output I dramatic that we’ll achieve -- result And be

much. Thank you very

Colin next go to and Langan Colin, the from unmute. Let’s from Wells ahead go Fargo. question

you now? Can hear me

can we hear you. Yes,

Okay.

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regulatory as to at matter store separate the have But approval. your to take be grocery a that your will approval have will able car regulatory won’t house, time. work, it So, you you It to touching without friend’s your wheel. from to home the

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mean And kind Level like traditional it Level of X, X would definition you’re talking about?

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And just a it. Got as follow-up.

IRA. mean, for mentioned get much buyers to part of you like the given U.S. interpretation the like sourcing credits get production sourced battery You prior tough like about you likely from seems I it it? hurdle is -- very possible? because a can be all mean, the the could of credits, for has pretty you in Because questions you that I sounded thought Is how guys. component seems it my

Yes.

a team looking closely. have we very that’s cross-functional So,

the threshold year. sourcing the by mentioned, you As increases

the at U.S. U.S. looking the in all important ourselves options Treasury. we’re We We some manufacture also That’s getting fraction manufacture a So, that’s the other and -- from in the do to clarification of credits. only say modules it’s

pretty a that’s thin. So,

So confident by threshold as the -- yes, have increases the path of year. feel these sort we that as a incentives we’ll

those thresholds.. Yes. We’ll meet

you. Thank next question The from Colin comes Oppenheimer. from Rusch

incremental side you leverage sales has areas from accelerate And growth an scale R&D invest should way, to level about reduction, whether some or about thinking basis this it’s cost impressive a pretty here? been on we operating as The or spend on the the you side here. and operating be curious significant leverage on go-forward where could in I’m up or of

operating as It’s mean, of revenue. Yes. I mean, it I our the of amount, keep think growth slower. slowly think hard has it and a operating reducing. growing as a mean, I up expenses of decent with ever, flat Company, by quarter, it the leverage the company will lowest think, our it’s is much our improved I grows. forecast this amount tick rapid the quite bit. very percentage I about OpEx to total It’s to way but the a is that will keep

growth of the of amount top there, business is growing some the so quickly. line So but

there of think the efficiency improve and to enormous business, I it. be the continues to overhead So, we’re opportunity seeing

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a gets it good place guess, I to So, be. pretty

mean, programs I in how running are we now? parallel right many Yes. R&D

it, some stuff but R&D bunch old it. of There of a are for know that. even don’t People

don’t R&D think gauge good is I of also much you’re cash how a doing.

they’re No. like It engineers isn’t because like not -- it’s -- not generic. it’s not like

could -- or that like if cookies be will just you $XX like that coming that. like true. just not line -- billion something. to Engineers billion, useful -- it’s on assembly proportionate spend actual will some product you $X So ship off or R&D It’s your

Until get optimistic. we

things. is the matters want change the companies are work. optimistic. smartest people brilliant SpaceX most engineers working? where where What to remains And Get two are Don’t the and Tesla Tesla --

invent and do R&D billions future. looking to for... don’t I also a the cash have the to burn out we’re just are wouldn’t window mean, spend like when we like trying money at cost invest as to of investment I And conscious. the stop future dollars the we in don’t Engineers R&D.

think I X dollars. frankly of an nickel Tesla infinite worth is number

shares like the they of X not almost we able number do. could work to -- can nickel Tesla You be do a would have of credit and same

volume. can’t make You up it in

very you Thank Okay. much.

Let’s the next go Canaccord. George question from at to

Annual If have of I used that an your Shareholders’ continues, Thanks. production materials to where the opportunity does give that started prices mentioned the of think, globally increases? that your at prices adjust event, the to several in after boil. off Elon many you come

prices like at -- looking future what prices obviously, copper to be. Search a price like anyone steel of things on electric just mean, everyone And we’re a battery-grade the just Google can one dropping But away. vehicles, commodities of go-forward the -- Well, see lithium basis that are are a It’s crazy closely. still is on can I or Google expensive. the going of price lot. in

are dropping things where things got a prices where are we’ve mixture increasing. and So, prices of

time battery between quarter-over-quarter, at -- I say XX% to XX% side. has on anywhere Yes. the aluminum would steel stopped the same

got the It’s Like Shanghai tremendously. And as of $X,XXX. container a $X,XXX, of come cost now spot the $XX,XXX. year, has as from down kind on high cost And of it’s last shipping reality. that market

a deflation seeing exceptions few in We’re commodities as Elon mentioned with a on lot batteries. of

inflation. than deflation more There’s

Definitely.

windshield. out Wood And mirror think Fed because and Ark over this the at publicly they’re Google available just and Fed instead the Cathie again, I point again, to could is Invest is this the of listening the rearview Anyone looking at is front over information. And not looking making it.

Yes.

Just to little context. more a add bit

years. the the over last two were QX that increases seen commodity we’ve in So, highest

And it fully reflect. take indexes when so, before time they change, does

There’s Yes. latency.

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decisions through out say looking you’re And I sense mirror, out that rearview the make the if why Fed’s but That’s you front got not actually if look we’ve windshield. the windshield.

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see in reduction cost XXXX. surprised some probably if we not. We’ll I’ll be did Yes.

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Christi. Corpus In

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incentive. Before

from And next from Sacconaghi comes question Bernstein. Toni you. the Thank

today. just we to where up cells I seeing wanted XXXX follow the and deployed them on are

XXXX? So, those XXXX Model And is December -- you delivered Xst? seeing in have Ys of being this in potentially being them that Model that I please. XXXX follow-up, gating for Y on anticipate the Cybertruck the are a are and Cybertruck you are And factor a ramp Are Semis we year? being out need across for do how balance And Austin? do produced Semi, in later

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Yes. XX,XXX miles.

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anything being anything Cybertruck or this We like else. -- anticipate don’t

question last And Okay. Stein from from Thank comes the Truist. you. William

at in FSD, Optimus. which that computer last of of AI the the for success go training one is without likelihood of major driver, asked the commercial your of each expectation as I’ll guess, imagined I course, three a endeavors. sort Elon, time, and, I

outside cars the that the self-driving to regulatory we’re course, improvement. regulators can get autonomy And anyone there. We’ll I prove car, then, driving see you think full Beta XXX%. self-driving we’ve control. achieve our look I who’s which the occurring got of is full almost in approvals, self-driving -- has rate -- at of full is of And to -- it we’ll and full But

You we getting experience there. can just in that for yourself fact, are,

almost there. we are fact, In

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outperform on training. So the The out jury’s they NVIDIA can jury team, Neuralink Dojo. Dojo is out. for

architecture probably We I is year, the right to it’s Yes. that’s architecture. will this is we or not. probably -- that we how we’ll execute true next in Dojo think know, the depends think It know we if don’t well But -- on win. of -- architecture --

Thank you much. very

it’s think, today. I that all we unfortunately, the time have

so So, you you, much now. talking and three have great questions, to thank look months forward from for and a to day. Thank in about your you good

Thanks, everyone.