Tesla (TSLA) 23 Jul 242024 Q2 Earnings call transcript

Good afternoon, everyone, and welcome to Tesla's Second Quarter 2024 Q&A Webcast. My name is Travis [indiscernible], Head of Investor Relations, and I'm joined today by Elon Musk; Vaibhav Taneja a number of other executives.

Our Q2 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 this 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 [Operator remarks. some Elon? into opening has Instructions] jump Before we Q&A,

Thank you.

So to UVs. compelling acceleration large saw of a then make and recap, struggles a of to we bit hangover adoption EVs as others

not and it done which electric have but vehicles few that long-term mostly, really fairly been they don't the entered has for issue, there discounted have So have it's a We competing short market, well, substantially, they this their more quite have quite as term. see but Tesla. a EVs difficult made

best a the has also for customers And electrified obviously fully aircraft we of still and had and world are firmly cars, for not EVs believe just transport but boats. that that

Despite storage in high the the by [indiscernible] products. We that, many for here vehicle of too biggest we I we half the for first infrastructure team projects, in we efficient record are big much because next a to map And is and great Tesla record we're events. far, announcement in investing model to business. achieve Tesla economies year. reserved that quarterly the AI the into really, training have a including in on and, -- more product is future the addition reached road future producer and electric executing, But to product job differentiator profits energy think track deployments won't world. And affordable did autonomy. great to The challenges, scale for most deliver support QX, leading the we're revenues. many get an Energy did and in all-time

product, pursuing robots Optimist. market allows while applying AI -- parts superior are time and more better this of to This cost vehicles, for others -- but do not them. robotics, like scale, humanoid just seeing quicker autonomous a we're of autonomous all not the to control, different So to

and full improvement QX. full full the works. think with Xx rollout, made [indiscernible] how experience we've Version change step lot well stacks. a in beginning city version driving we supervises the progress XX.X of with Regarding self-driving a And in self-driving customers XX.X XX.X highway robotaxi, of parameters has and will self-driving and

at this [indiscernible] highway is the old. So pretty point

the the issues merged often the But encounter X XX.X, So people on we are highway. stacks. with finally

better anyone that actually the how the understand still system you most try down around. is. that car the to people know don't to good would I system I simply encourage find And drive

to people using how to service of that the One block. delivering Once a show all, of for just understand picking continue make tend the the up new to things And when use driving to capabilities a we're people they sure to car car that it. use is actually doing and going when at be car, people it. just the just around

And driver, unlock can will self-driving, unsupervised So as [indiscernible] massive transition potential a massive full and we will we be this, compelling. it's massive self-driving I in driver. fleet. will think, the to unsupervised even intervention, very for a demand self-driving the we be between increase full miles demand And from

to also show. And XX/XX, And changes of I would of we're we're going months sort to robotaxi We XXth the think improve going the thing I -- up wanted robotaxi that the shifted postponed the it's a because main couple show other to to -- by of make the thing things. to that sort this the product important is some of couple October. unveil where a of

the product a date. to as of add South completion things well in Giga a for expansion the few back the of of allowed which to improve other cluster will So [indiscernible] training couple largest also as us moving it months robotaxi Texas, nearing unveil. We're

So it [ at Tesla hardware ], HX be AI for of computer. our XX,XXX plus an XX,XXX incremental will

Version point, With in to Optimus, produced factories. It's But limited Tesla There ramping will quite for bit. by providing be up of Optimus production useful expect next at and This production we'll better XXXX, the X starting outside robots production things have production Optimus. just issues Optimus to end thousand iron is robots already doing Optimus to early be year. performing us tasks X factory. then will of And the in And and the And in expect next Optimist that out a to customers. Tesla a our Version have be year consumption. we for ourselves. we several

For faster we are anything than than really constraint. is else. the -- business, rather energy constraint This this demand is production growing

So our double our output, roughly ramping building our up as U.S. we're potentially. in than factory as production China maybe -- -- well in triple factory mega the that should building more maybe

[indiscernible] the system, energy the across We're board. about progress So changing conclusion, super in the excited push economy. we're the

autonomy but taking are massive, the I vehicle incredibly emphasize We really I importance the future the just side think for of can't for and is just bright. is Optimus.

think order Optimus, the I valuation that several volume a a with essentially And I think, Although operate and on MSD crazy to Tesla number $X the that enabling the probably I trillion, long-term the think, [indiscernible] are achieves producing autonomous it numbers not wrong. it to And pretty I supervised like fleet. times some of things number. app giant sound valuation, fleet takes think, crazy,

execution thank I news for strong the looking ahead. forward team want to exciting a to Tesla and

well. Thank you Vaibhav very has Great. Elon. remarks And much, opening his as

to again with notable recuts. rose funds the yet some mentioned, on occasion the Elon and on As team delivered Tesla

to our sequentially. in entire efforts deliveries to thank the for addition team quarter. automotive their go saw Tesla I we a records, would delivering great those In like

extremely response, quarter. sustained financing front, will rates. These of most and you're for parts offset in the I offer come in rates the in QX as business world. to auto competitive sidelines, persist the of programs in your impact now into On interest we This QX, affordability car. financing get Tesla. an programs. on the top revenue buy we to time on the have per impacts mind out unit waiting best reducing We're had already customers launched is mean, options offering similar high a and These if remains

We in dependent selling vehicles had our of as well. [indiscernible] in the On Europe but remained demand the on revenue is China changes chain, are credits for quarter regulatory flat net, record in U.S., supply company a for as for to to note further manufacturing is and ourselves It well regulations. plans American-made continuing journey the as automotive the that just to factors. the OEM's regulatory our our most and important pride as the credits kind on well respective are with cost, localize and We they be other sequentially. not

As is compelling most on focus a providing always, at reasonable price. products our the

estimated We that combat along right on is than believe have stepped provide charge. XXX anxiety. the of with this, single more a up have miles network strategy range expansion range to supercharging our more our trims the efforts to We of

the of improves driver increase sales the this Since of epic North in set we've pricing a rates revision as vehicle America, seen be expect meaningfully feature to and further. traction

we per declined impact Cost of remove when the sequentially Cybertruck. vehicle

trending the materials get reductions with and down, costs the cost are when up in that the vehicles show service delivered. latency would these note side we P&L experiencing While there material is on built

the still that the finished as year, it into are amounts we second are and we to of Cybertruck X impacted and goods. of is half Additionally, also raw important by note tariffs and on ramping getting both varying get Model materials

it may these. teams Unfortunately, are offset the furiously in cost the have to working our term. While on impact an near

Energy of the contribution also potential that not the doubled excited Energy the business talked just that Megapack We over backlog storage energy is energy resulting now deployments results. more storage feel is bearing from the with previously was the for profit made strong. about revenues in foundation and than record but Powerwall, and time expected business.

discussed fluctuate send factory with large period of on variety timing, on storage and decline. Recognition hours from is in we EPC others factors, increases some and including markets As to dependent as construction world deployments gigawatt a projects units the a will readiness from single quarters a of seeing to across of logistics seeing case customer activities. before, period

the other and business. and from The growth reflected the of in impact utilization in on the repair collision reorg business, our of restructuring also our other to statement. service gross in improved income other improvement and sequentially the profits is service Moving on parts recent

it which financials. out want level separately to And charge, called the Just set, remember this about million got $XXX of period. on recorded the we that people to was in I

Sequentially, our and activities higher spend reduced increase and surcharges, in operating expenses, costs. for despite legal AI-related other an excluding

of bring $XX increase as a the year a to This QX. investments. capabilities other flow the We QX, AI initiatives. despite FSD billion in to new $X.X cash we our and CapEx our front, ended cash in and $XX of GPU spend scale increase will we to we over the billion immensely in on saw while being quarter, free to quarter decline cluster made On payments center in This restructuring over with we sequential still and luck. the billion XX reverted was expect CapEx positive be

company will be begun entire team Once the placed. the to time, the Tesla I building we've phase take involved. the again, but reference. for being for thank the blocks a would experience again, It next with journey like will Once towards some everyone rewarding the for

much, very you Vaibhav. Thank Great.

Now questions. investor let's go to

on status Roadster? The first what question the the is is,

to be It it, respect to Roadster, to next And with we've I some something there's year. make think we completed upgrades expect With but in special. production engineering. the we of for [indiscernible] most be want will still to

about which is event, question timing of robotaxi covered. we've next The Fantastic. already

question. to go expect robotaxi the we'll first So ride? do When the next you

really supervised or of that's my overly when in the -- predictions question this have we been we when can first past. do It's self-driving. on expect that, guess on I a optimistic obviously, the full difficult, just

could would that we year. So far get it the as this interventions humans to the you mean, high be seems if year. by enough possibly we shocked though on between do cannot be end trend, enough miles current do I unsupervised I it of that too based should next

plus to on of simply point year seems miles next [indiscernible] between the next probable So year. for That exceeds of highly intervention. based curve points the trend me

you Thank very much.

SUV the sees have to plans cyber Our wows you the that cyber cyber it. expand a van? to who third question everyone iconic Do lineup vehicle is, is an product or cybertruck

announcements product a limit I to a when think announcement -- to than rather earnings want events calls. we product special specific we have

Great.

XXXX cell production? question how the next status is, what current is battery Our is ramp-up the of progressing? And

in process below cathode as up cell towards than we the we're We're dry mass We've with in to [indiscernible] truck reducing produce drive And cost strongly production this currently super of of a with which side proud We'll made validation of sales production X,XXX of Polish ramped first cyclical launch available more production the We continue end the costs delivering huge to the ramp than a of for be enable parity COGS significantly further set track for XX% will and put towards target out equipment, weekend. milestone, original our significantly. QX, the more goal alternatives QX, cells cost XXXX while product. we built is Drysol. that. XXXX year. on

on The any Great. update question Dojo? next is

Yes.

think should And and we capability Dojo I their execution being that got want NVIDIA's to guess saying this GPUs. in order -- to in NVIDIA I'm hardware put are amount when in therefore that and -- that get Dojo, preface about requires order So need. by more I'm what this concerned often training of that effort lot the difficult we've the actually quite the high I on so just by there's get impressed is hardware. able that seeing them. we have I we it's we seems ensure is And capability for there to incredibly And steady a to GPUs

very to are there the Dojo, because to demand raise NVIDIA of And and NVIDIA down is obligation kind and with think I the path GPUs do to it's which we to we we see of going will have with is double essentially obviously Dojo. for [indiscernible] high. So competitive a bear, choice on price no high being so

got make and to So we've I Dojo think we will. really work,

type question will with is, accessories what of offered Great. Optimus? The next be

-- There's humanoid a has with generalized Optimus a be lot robot tend of to intelligence.

access of billion where human. So backward with just human It's be be compatible tests. to able $X saying kind it's really what offer we to like

accessories would it any So that [indiscernible]. are use

you're people The feel of Tesla the next you treating joys non is, question a out owning do by of advertisement?

want to so want some advertising We something? say

Yes, I'll something. say

providing fundamental belief that consumers. to is be to Our a best for the reasonable we the set need price

never -- advertising of were to encouraging. we a dynamic saying other this deliveries all owned to play, is and money half adjusting that awareness our were to the who which Just QX, and advertising. fact, is We've programs, as in in our know alone and no have and plan sales to give this people on a spent options strategy. U.S. But had in exhausted keep over and Tesla we you year X/X to our well. have later not adjusted not We're we a therefore, of before

in already The Great. next energy on growth, the is covered remarks. which question we opening

on So Giga is What next we'll will primary for Mexico? the produced the time to And vehicles one. the move what initially? updated be line

Well, currently on oppose we Giga Mexico.

stand we has to on said in after tariffs need think vehicles Trump things the that I election just Mexico. see where produced heavy

a be sense lot going the to case. make doesn't Mexico to it invest So is in that if

of kind see we need out where So things play politically. to

that Cybertruck quite existing our our at headquarters robotaxi at significantly. Giga,Texas. or However, at And the here produced we're I should say capacity increasing be will factories

you. Thank

and for to Texas. Optimist produced high-volume be occupants next the end version as production well version Optimus will year here of of towards also the in

Great.

more. a with talks couple Tesla FSD? still Just an Is to in OEM license

are interest of in suspect And those few can't over be discussions. we time. Tesla There have comment I will the more expressed major full on licensing there a details that OEMs But self-driving.

XAI Right. and any And last in updates the one, software? [indiscernible] Tesla investing into on integrating

shareholders say a in in bit certainly [indiscernible] to are think shareholder I actually I software advancing integrate approval opportunities on center. probably been a group Tesla AI, there supportive if learning from the that we It's quite I investment. should And such to XAI. wholesale helpful investing But think and reminding think in new With Tesla's building driving to have I'm vote the I of at of need we that. any are need data up again. into Tesla

All analyst will now right. And questions. to move Thanks very on we much.

from yourself. comes The first Truist. meet Will Stein from and Will, question

do X relates with that's that a things But ask Elon, opportunity last Tesla's commercialization, like I there recognized about asked. technology. the concerns I'd bit and your share was some little a strong Tesla's And about this to and to enthusiasm the to I AI some are about. great have what

to if destined asked or you some quarter indicated I'm that sure. similarly, were new that And recall, a it the through stories was were for compute some to quarters systems XAI your you instead there not AI redirected Specifically, X., perhaps Tesla at I about a noted that to some engineers ago, few great you ability some of in that on to projects And hire this weren't or again. work area. were Tesla. desire for that were with, there you engineers these perhaps even instead at was XAI [indiscernible] involved but of them They

is your that AI So you the make do Tesla these way various them? do comfortable engineers, capital it owners you to that a make comes when your it among R&D, And how ventures? decisions your AI you're in benefits question doing really investments, how allocation

think I old mean I referring an Yes. GPUs. regarding very a you're -- article to like

to old. Tesla X X like or simply turn months had on. think that's them I no place

would it on. to Capital been have have of we have a turn HXXXs to because just no place them would and order So Tesla waste

I beginning we're a HXXX wasn't But was will no HXXXs, needed to was there. been Texas. full. we There no Tesla just [indiscernible] needed what There the place extension really self Tesla in and -- place the from extension XAI to that the basically. XX,XXX house racks to So actually server to South them. centers certain the test -- is on complete was That XX/X move put we big this The Tesla. the complete working we've -- were

a you data order GPUs You turn center. -- them just can't on, need and order compute

teeter which able to [indiscernible] extension has have really -- to be this clear, week. this Tesla's interest, South GPUs, I that was take in not use is no to to So contraries, that want just is

moving online. there are bring the GPUs them We then and we'll

With only want regard on to there's XAI, to AGI. that [indiscernible] work

in That's I what a working was on -- people wanted that start only interested do was ATI. say they trying to finding start-up. we're to So problems, and get to were to not they Tesla,

start-up was Those to involved to involved. the under circumstances. not This going startup and do would not were either wasn't not they a Tesla X any Tesla. or it are or a come they They So case [indiscernible] come of to -- choices.

yes. So

other Yes. are work are lot add I are a on AI on, to would full self-driving the case, broad And which of mean I and in even companies do focused But that's other of which spectrum. is there we're XAI. that AI, things also trying Optimus. the we a is and working spectrum this of there not kind which

that a thing. keep to it's specific in not have X You spectrum. just broad It's mind that

just to you to including can say, tried And want, to on again, like, to was [indiscernible]. AGI him want work I XAI Yes. Only Tesla, myself I refused. they and repeat once then here. recruit you if

I that If next can that I for reduction. this hand I've year? relates to we is ask announcements. new not think It on heard you're X clarification. the really planning But venue about focus, on X appreciate follow-up. is focus introduce that when vehicles product cost the the I the understand the to

said but other hand, to expect Should cars that the variants make would limited also you the strategy changes to the Should that factors. with On in other Roadster come significant maybe next in we the that like you out. different or more today, other the or we form be some or year expect part some X? -- variability a of improvements the similar

want And we here. I the to details into to [indiscernible] announcements. careful product don't have get be of

things, you story. like to making in it of just in have the products sales. great past, So near-term going could the some We're we future great start end if announcing our affect

Kallo Ben from from comes Great. Baird. The next question

term? on on think revenue with just hardware. do and you distributing the little time think bit on overall Could it update And we longer you you energy the you you just new my then us cars? do your use would Optimus and so how is that about letting more last power auto overall about come, will talked call, the talk line your about for And that, how contribution a their we quickly When their below and customers for compute of reward XX% think and compute fall in growing the segments follow-up revenue? then revenue about

Tesla long-term mean, else as said think that few Yes. times, I combined. the Optimus I will that of of I exceed a everything value

the usefulness asked that's it's consider [indiscernible] just So never anything pretty it. of simply much you utility do robot a

everyone [indiscernible] to [ going I know it's it's on. so think X billion ]people

So got you've $X there. is it's which probably right they Then million at least as uses, wait can't of all industrial warm. the much

So -- human that the robots the to robot And and advanced suspect has [indiscernible] world, general Tesla companies we're are XX is the with purpose leaders the a most the block of demand manufacturing, is excess most billion good of in units. for these which I Tesla very in other not. we've also word [indiscernible]. experienced in And at experience got lot --

all of utility, So think ingredients for necessary in ingredients we steel, have all high the we're of robots. [indiscernible] having the a I unique

is It's business where money what can benign have head wile human I'm headed of That's a term accordance -- means, shortage at future pretty for why, that there we market transport, point, general-purpose of the capital we no several age much not trillion maybe order want. more sure in robots. for for anything of long it's I autonomous analysis services. Anyone invest mean, you for in of AI that abundance, rough wild -- an with but pretty number and scenario, even estimate for. are the my times $X the is on are

distributed on compute? the the And

Yes.

in production what It of bXXX. which think from is And pretty standpoint and AIX, Just I interesting BXXX aiming Hydro, bit comparable to compute to have with scale production is the [indiscernible], calling distributed the a next next XXXX. the we're seems whether to is [indiscernible] which next-generation in Xdistributed compute. that like year and a we're obvious becomes of at

you've that week, vehicles a XX So in week. autonomous XX seems XXX for hours like a if got hours it are just there's or operating

So neural XXX net I we have somewhere computing. above, think,

with a need GPU we because I think means GPU the better [indiscernible].

or distributed vehicles plus of of the [indiscernible] [indiscernible] compute and that first to in vehicles human from what robots, maybe you sense purpose hours for per compute the with that of general car. million staggering there's week it is there's And XXX So have and a computing. a and AIX that amount make of just AI compute, if X Doesn't at to fleet do could the robot XXX AIX AI for and fleet not, beyond a some inference. it percentage inference use from point, and the used billions [indiscernible] would

I that's say nothing. pretty to think thing do So well, than like, more a useful obvious it's how

Alex The you. from next myself. Thank question Potter from Right. Piper comes

a I licensing. to question wanted ask Perfect. FSD on

can plug-and-play I proposition was some elaborate would, stack. the You imagine OEM I in on its mentioned not need presumably, develop would that's sort sensor compute, work? presumably based I on if would I how years maybe platform an that adopt passing previously. vehicle this FSD. to of that Tesla's wondering just mechanics architecture, guess, own that you electrical they simple to be don't know, several of would

of recognize that several to So licensing agreement. with take if kind I'm but had way be a would you'd Is revenue another that me cooperative misunderstanding before presumably think of years able to from that? this, agreement about it some then right you you if the OEM, correct sort

do would computer a -- That's fast. gateway through but they OEMs and XXX-degree just would the our it too. computer the The need cameras suite. at to gateway not view. Tesla with what like Internet move and kind have the Yes. be system, really It's you of the have a not communicates AI least And cameras, sensor a with integrate talks

this given computer industry and will this speed with view. commerce several -- be XXX-degree would auto the X would the a gateway before cameras Telsa get which volume. WiFi [indiscernible] it a AI in connectivity, and years to cellular the at see So computer moves, it's you really But

Okay. or less Good. what more I expected. That's

you to licensing agreement has vehicle do after with out? that? when an and the disclose if you is, ready think be here agreement follow-up sign rolled only you multiple the you right it is another you passed that FSD or do did then when years Would automaker, would sign So the

I think way. depends guess be happy the it I we'd on OEM. either

things yet. Yes, enter lot we arrangement on of depends into in are what we're it [indiscernible] kind a not sort of the those

that to and make that we we'll when as point. get determination So

of kind are the just deals a take And XXX,XXX in willing that some not are if We or like significant relevant year. obviously cars OEMs or it's year could million X something XX,XXX a because this only through that ourselves.

All right. The Levy Barclays. next Dan question comes from from

to First, Shanghai. I wanted start question with on a

You've of from really an makes batteries changes, all, as can export leveraged China Maybe into give might center of change do the extent to in its you the cost, a of if that given U.S., given the tariffs? that just what your Also sense. Shanghai implementation how the us Europe? sense tariffs how import at low strategy

Yes.

think I bit more. just I But it to a in covered you of little give opening remarks. some part my

tariffs cars OEMs European other the sample side, first imported in round into from for establish did Europe. certain the tariff the the being thoughts to on Just China

we not in they them, the we individual also While factory. picked delivered U.K. note China we We information, other for up in import hand is, visited them the strategy But up it Berlin did and as and our adjusting thing second in one -- right started round. in into building itself, to out round, Model are QX Ys out provided of were Europe. result, us a first of worked with the we all pick examination in our our They the

will we're this. we're importing we still [indiscernible] alternate into all needed, keep And of what out the Europe adjusting Model we still best as are And Xs evaluating Shanghai. but -- is

well. I authorities, said, Just on European cooperated by we the examination with the them like

a than literally fast what as rate confident have this. can this get we now, with imposed they are are is We but we for we as adjusting that and better should wording,

also I is mentioned. just I is It that more doing because as -- of that the U.K. places seen Taiwan, you've imports into well as this, Berlin the like would add impact

keep we changing, adapting as and will will go So keep it forward. we

As regulatory that wanted is about a be of I release factors to And -- the notes shareholder here robotaxi is follow-up, deck to the specifically, gating X strategy. ask the the going approval.

maybe does robotaxi nationwide, specifically that's which the approach to to so geo-fenced, Is the FMVSS you regulations ones with done one then that's we the no more extent of are and And should be standard? looking more us driven FSD more state-by-state boundary strategy could a it approach. is understand a help shift? speak, for? You've by what So Is that approach?

our solution is what mean else I solution has. like everybody generalized a

see localized mapping. they you If fit, it's the -- have [indiscernible] high-density that quite not It's requires fragile. very solutions on

to I ability believe, their limited. expand, So is

a that is different work solution [indiscernible]. solution Our It general anywhere. works would even on a

if on new would work [indiscernible] earth. earth, So you it it on new

capability. this it's So

large way the number that really [indiscernible] the in -- with of miles in enough -- of think got approve. once than It's human, have what you of that They're to significantly future that is safe billions difficult we I something deployment of demonstrate of human, safer safer that argue stand in got show experience, if our that unsupervised you've or a regulator is than we find regulators if that. capability. supportive to obligated are could FSD

don't self-driving a the capabilities will regulatory also are I that be of factor. limiting So think approval say America. far I North that deployed in should behind North America that outside are

of of be XX.X, China we're with countries. year. soon, to pretty There receive maybe will regulatory approval before likely the Tesla the other And driver helpful will end demand and the those we ask supervised XX.X, So a I think regions. in FSD in that and for but Version Europe,

Thanks...

rules U.S., by is In Elon terms across all like grilled FMS are as in all said, of states. XX vehicles The which in states. the approval, the terms same same regulatory the governed of XX across are

a to gives states recently. the deploy all creating solution generalized best in So XX us opportunity

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to perform specific and to makes add the X there. network add take in give data the you the it no the the core just there. U.S. And different assumption location. to comes just from could like a end-to-end that Like close basically about almost data well technology countries, point, the It's from all equally

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Yes, exactly.

Great. The Canaccord. from comes Thanks, question guys. George from next

canceled wheelless least you may vehicle. has shown, the have doesn't that, could pedalless, be for regulatory images understand, and that about Maybe by pedalles maybe question uncertainty decision I'm on Is pedal regulatory a be wheelless. in just been the the the from concern again, is here, that And there environment. that comparing to regulatory their vehicle, also from a just different pedals deploy traditional morning, vehicle And the that I second. if or but we apples of driven wheel regular the robotaxi a and public was this the according but FSD Tesla and their at company expand and what oranges, GM a to like on and wrong different just

misleading regulators, in because That's is Waymo so can't not fine because just Well, reason is they're they because GM can't regulators. [indiscernible] obviously, markets. make of do the real work, doing it that those blaming

it's at just not is technology So that their par.

you up what there And think mentioned you can FSD the maybe rates us way you take after price. any I follow-up, help materially as exactly? that that were reduce just means Is a quantify

to make it why encouraging it specifics that a the use realize time key it. increase. sure time because And -- car people to we've till we that's I working, said, we sure are we to like to are the thing want trying every we because describe results. is, low you but that are when seen need how is Elon getting don't is. you is meaningful thing we actually I it how X how great shared a just We've give a base, delivered, mean, this it words started experience Because working. can't from get see that you here into And seeing Yes. being example.

commute your me the not into the the version XX-mile interventions just wheel glass. there every as latest as have are we're [indiscernible], I you long in lag factory example, And a but almost also drives have car day. almost there's I wherein and tracking with the again, So more on littery movement, eye the especially over. the latest than X stearing [indiscernible]

fixing the coming soon. It's [indiscernible]. We're

you to talked you that, so Boston a -- get can or it. drive have -- maybe if and ask you like, number like live able about on. will me people to and car times ever -- be in I've there's idea have So able York who glasses with don't but And smart of just not New had I'm FSD, on these you'll you're doing contract what's try then and and downtown be to no some going

Pierre. New from question comes from Pierre next Street. The

then you question think robotaxi, get it's get is So more up I'm a like a drive you And it cars still on a completely that that the clicking et how deployment? scale. -- can But and We approval. me, do you lot eventually certain that cetera. will everywhere and the [indiscernible] again, once we I regulatory that have of replace about road. replace universal to my I'm there get on And can means solution a with service, taxi. Because it need car like confident, a thinking can miles

to et them, of just cars, you maintain an take infrastructure need care cetera. And the so

is a is, plan? have And partners so then that? that of partners, like partners, like And you plan to to I already working question are an what Tesla-only And already global follow-up. you do on quick looking that? Do local Or deploy like? idea a at my are you your have looks

This network. just Tesla the would be

-- we quickly come In Tesla and is And over human million U.S. XX [indiscernible] to the scale. will million. take the fleet somewhere. the able million, over summon unlike a in drivers. card then open that will XX And the on XX/X is X car open app This the a literally car sent soon. be it and a and operate our just we of You order that's have

update. the customer-owned for this capability is scale with -- a to software a basically And like So this instant fleet. now

it take by allow to think or fleet that as the will revenue It can bring fleet be the used choose like bit and of churn cancel the be used customer. to be then can Telsa the the the by you back. So a of and you that with used the fleet your time, we can by like Airbnb, all being some and time car

the Tesla Tesla drive think that owned make addition, would that But bit to in number can of can would [indiscernible] a important party fleet used mean the Tesla equivalent is and each [indiscernible] of They a like an every some the Uber. cannot third only And purchase, be be be be just you If cars Tesla a used of there's added Tesla in be in by would vehicles Tesla more that by I guess which fleet. this put as on autonomy. Tesla fleet. for be network. I Airbnb we've like we will wheels. the vehicles

think critical like to scales there is to, you compared to time? is be you handful city typically you new a what of you cars a like able offer can competitive a And do progressively, cars, Okay. the delivering be service a over that do would in number start Uber Or think like to with that get quality so like to of grow a of just already? you mass need

want But not obviously basically who to money. fleet scale. conveying people instant I correctly. will. guess Tesla number I'm is It's not earn -- think The there's This active. maybe people some this becomes don't car most their of I'm I entire --

Thank you.

Oppenheimer. Our comes from next question Colin from

questions around storage. energy X got I've

these types stationary given saturation some you're are in of starting power how in With of And a pricing shift the markets talk given geographies about storage, [indiscernible] thinking that wholesale pretty quickly. you way about larger the your to meaningful can strategy? systems

set market of mean, working and delivery there's And to a I actually you the starts happening. end are players long yes, a in where So with contract long. very is a actually in a we into of large pretty where actually terms enter -- there is pipeline our

we too. and good leverage, have far, this, pricing so And I'll Mike chime in on

space. there's like competition mean OEMs, is I Yes. vehicle there from lot just of the a in Chinese

So in the contracting contact secure to build We and sure XXXX. quarter be to we're markets. and and strong XXXX to needing competitive a making to that remaining contracts for power our really competitive our energy and backlog in had where customers with continue they're in close sell we're

are with control a So power so... market. we feel own proposition and we strong, good about in with a We we the integrated have electronics offering strong pretty our where product fully pretty realize site is that level but competition value

that a us, stuff, not which is fully also more edge again, that proposition, And only that is software whole using too, competition. we're which -- available gives as it compared to unique and Yes. aspect And with us stack do an there's other a the to we understand comes a people with of Megapack, right? the which but is which much have

can we they our that [indiscernible] back that of customers and and solutions. solution doesn't to Yes, sometimes put then then they'll a work, find us. pick sort And then come together they

Yes. but demand continues there's And different more more There's grid scale. we're increase saturation on up than just of global expects. a that in we're on markets, really like markets seeing given seeing saturation the not to anyone little opening pockets

opens buckets. world up across really just different So the in markets that

GPUs backup the pretty getting And on large compute for center Yes. things I amount side, and for at really lease of these pipeline, people, a that scale. we're just powerful. data mean increasing like the AI even which are new is

process, far talk XXXX qualifying technology is around supplier process some technology there an you critical there's incremental you in about of some the how those potentially your equipment were then in around along suppliers. And process there steps? the news in older Can

lawsuit affect our Look, that. to ability roll referring to XXX. don't about out this have Yes, I you're that think to can I with our we X probably talk the as of suppliers. is going

majority strong of that in the build. we We it is designed have equipment and the And the in-house position of in-house IP technology. is some use very

And we we and our to. can if need else so someone have stack take it IP build

So that's now. not really a concern right

Yes.

I be demand by They don't like just just product there people storage. the understand understanding much this [indiscernible]. pure I demand for think will how orders are think really

the or there the are to is least at output energy power grid the So peak say, of can -- U.S. gap generation. from in times terms amount trough the operate huge Because to energy X -- -- power produces. of the in huge state energy actual entity X at steady there's a a of difference total if plants because is, currently

worst way The be worst it the at of for year. So energy. in power time rest blackouts, that the it to support day excess to or no -- order day, but got of rest able the for a grid hardest the the to that capability, year, must of it's load the which the not have has of coldest the massive generation store means minute

the of can that you producing. battery add cases anywhere given twice state energy you grid Xx. plants of cumulative any at That's Once packs, now can is what power world steady course it means currently least Steady terms at in run basically maybe the year, the produce state. in the in

Thank right. All you.

That's profound very a thing.

Wells from The question you, Colin Elon. from Fargo. comes Thank Langan next

could guess Great. that Thanks cut. chance ask for wins, there's IRA higher can taking my hear I we questions. Yes. Do Yes. Trump get you a me?

think doesn't get I IRA via Y lose I lot subsidies. away, online get Tesla EV batteries and that of think Elan, I commented Tesla think goes a Model you But for tax credits. survive and X customers, had on held when production your support

it for the So just might be negative? you can would if you get profitability And the any a in not negative be Why [indiscernible], framing support near of then your it a current term? clarify IRA-related. the

long the probably before actually earning some would is I -- as yes are be we're -- in but of be the my our other -- this autonomy. These competitors, things relative said would I I and that calls, -- there guess guess But slightly. autonomy. that value for would but Tesla overwhelmingly to it term Tesla be impact, think but helps like it devastating none

who too autonomy that anyone should sell stuff. They stuff. cold Tesla old, should recommend I Tesla doesn't big believe So not it keep

these believe other start. in Tesla you bake are And questions a If should will you solve autonomy, the as noise. all

also it subsidies looking whether when at of you Yes. an want always environment? when And looking our I always having been this looking it. are business, costs, manufacturing healthy ourselves which okay, we is we yes, get, or we've even that mean And And what everything. at benefit? are kind that we're clarify few but we've at coming look ask at the we without AI -- not to business day, things no how is internally, a if the at in way grow there operate any do we our the of whichever always to just that's drive the modeled say, there. way I'll in, And we that to end battery is there credits [indiscernible]

Like numbers delivered that our front. we compared see can the the in to on it and definitely have over as it a We've you said, competition years. advantage Elon big

you and And the ignore -- to there So once add to becomes think the like term. top said, cannot autonomy is business. it, on you short the fundamental of side it Elon miles of then about it,

Okay.

you Thank to goodbye. unfortunately all to I that's of think have today. and We the forward appreciate talking questions. all much, you time we We look next for your quarter. very