Tesla (TSLA) 19 Apr 232023 Q1 Earnings call transcript

Company Profile

Participants

Martin Viecha	Vice President, Investor Relations
Elon Musk	Chief Executive Officer
Zachary Kirkhorn	Chief Financial Officer
Andrew Baglino	Senior Vice President, Powertrain & Energy
Karn Budhiraj	Vice President, Supply Chain
Roshan Thomas	Vice President, Supply Chain
Alex Potter	Piper Sandler
George Gianarikas	Canaccord Genuity
Emmanuel Rosner	Deutsche Bank
Ben Kallo	Baird
Colin Rusch	Oppenheimer
Mark Delaney	Goldman Sachs
Rod Lache	Wolfe Research
Adam Jonas	Morgan Stanley
Dan Levy	Barclays
Philippe Houchois	Jefferies

Call transcript

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Martin Viecha

Good afternoon, everyone, and welcome to Tesla's First Quarter 2023 Q&A Webcast. My name is Martin Viecha, VP of Investor Relations and I'm joined today by Elon Musk, Zachary Kirkhorn and a number of other executives.

Our Q1 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

please During one yourself use raise question today’s join to Please to hand follow-up. limit button the one the of question-and-answer the portion call, and question queue.

into Q&A, remarks. opening Elon Elon? some jump has we before But

Elon Musk

Thank you, Martin.

the kind best-selling Model Y vehicle became best-selling in So Europe States. a any and lot of United in QX recap. the and challenges just is in spite non-pickup a vehicle in the this production of And delivery. of

So it's for team Tesla to a huge the results. achieving these great credit

think know, out while think it margin worth pointing early remains among I'm the especially -- industry. that anyone don't is best worth that people the prices operating purchases reduced anything, QX, And with I cars. macro it's such as noting in environment large already current in The considerably telling we remains I the uncertain. our

We've pushing is a for fleet and larger here a choice right the volume that a and higher lower view higher margin. volumes taken versus

our expect generate profit time, autonomy. will vehicles, be significant able to over through we However,

important the laying as we lower perfect better of here, cars margin the future So margin, that point. in extremely believe we're at and a autonomy. large we do is like and it's a ship then groundwork to number subsequently, an harvest This

see. Let's

event, volume in delivery It's at great our probably completing great Texas, QX. we we're production line Cybertruck, product, build Regarding the the having event we're purposes. installation anticipating Giga Cybertruck versions continue to a line of delivery and the pilot the a Alpha for testing of on and

follow new production all S slow and As products, so will then with accelerates. curve, it starts out an

different. is So the no Cybertruck

to of It's made other products, product, there's get obviously. -- for time amount all it way But hall it's view, new fantastic in of really a press line a this cars going. a And not as product. the And is with radical made. takes it the is my the are product, manufacturing famer. demand So very that

to progress. making regard with Megapack, So great we're

California. storage this per quarter achieved Lathrop, still gigawatt the our year. some in was by hours thanks nearly to And we gigawatt ongoing reach strongest rate in additionally ever. XX There's announced hours factory way far, is, Mega then following of deployment energy start the go And growth ramp Our to to the QX. new of in reached factory X Mega Shanghai. at This a the

we've the expected, actually the storage stationary significantly So as will we're exceed growth -- vehicle growth.

and Autopilot XXX this no mean, of is this training we've data driven to Those that one importance AI has. miles Full exponentially. outcome. and the an number achieving is advantage of how data Regarding Self-Driving, growing beta, that and incredible by We're crossed -- is over understand else will Full who data Self-Driving fundamental understand really I now a million --

autonomy. yes, as main focused factors of neural one is so also on our full we're of improving the capabilities achieving net So, limiting very training

continuing of magnitude of make an to a in simultaneously Dojo, putting purchases effort cost improvement also and of lot the we're for order believe So, we significant of GPUs potential the which training. has into NVIDIA

offers same a offer it as out though Web also sellable Dojo would -- also companies Services we it other that Amazon potential web to way And has even that services, a become the the service to bookstore. in started

really is very that, significant. yes, Dojo So, I the potential think

increase environment, further, in to good want fast making continue a that taking our this as invest time this a an and view many possible. lead being and selling Despite we we're to In as to as we conclusion, macro growth cars as keep can. uncertain is we'll

worldwide employees to like I'd yes, Tesla an incredible are super who appreciated. to huge all again. again, Once doing give job And a thanks

Martin Viecha

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

Zachary Kirkhorn

Martin. want record and congratulating volumes deliveries. vehicle the as by well. to And for for production Tesla I energy record team to congratulate start our team I storage Thanks also want

want make. main three I points to There's

X items, in the increased revenue well as the reduced of pricing margin include notably First, one-time older healthy Autopilot second particular, remain few But vehicle as S impacted half was gross transition and gross adjustments as at features most and sequentially. last automotive operating Elon action these earnings the by discussion certain deferred quarter margin our for and automotive improve In call, to mentioned, a since factors margin vehicles levels. which on warranty on we additional technologies. taken as

to vehicle meaningful with Progress and some on cost logistics beginnings QX on be cost starting commodity realized. reductions reduction improvements continued the of in

Per Berlin as improved driven unit and by Austin record cost well, for volumes.

still our likely after these factories volumes. margin headwind provide until reach and stabilize at intended to continue However, and so a will we do

balanced Note that build our a mix QX regionally was plan deliveries. our quarter to and to more third multi-quarter of move in

quarter for in an lower and within has quarter prevalent in particularly and was on due cars This this volume X cash impact a begin the at flows. previously, results of free mentioned deliveries we international associated end S I've As the and to transit production deliveries. of higher a as exporting QX in cars for quarter-ending

percentage rate This shape, after and by as focus. for starting driven this Second, highest many to exciting in revenue growing increasing level company's products. the our of and see is deliveries our is is years and business storage a an the of of its yet reached of businesses QX, business Megapack investment to take

the gross profit We are in making quarter. on progress also our storage generating profitability, highest yet

reiterate Third, the I this to business philosophy year. the operating we're by, which want

remain capital the possible include production, to left particular, as focused inventory into we and energy healthy We and on heavily businesses. platform, and to to volumes to as continue which our working in in-house And business need this next-generation Our invest both and cost while keeping industry energy quickly business buildup efficiency plan approach from autonomy cell this, products. to storage do accomplish strategic and future To in Cybertruck unwinding our the our plans, the over we is grow pandemic. AI-enabled leading. vehicle plan financially the and

want to again, suppliers team I thanking and well as by our thanking our as the customers. Tesla conclude

Martin Viecha

Thank you go And on to investor say.com. let's very questions much.

first adjustments? one you is What variables what The to do auto process make How do review is pricing frequently consider? the you pricing?

Zachary Kirkhorn

Do you want to or me Elon, do take that, you want take that? to

Elon Musk

My apologies.

add, do it's and on talk unless the to mute. I really think and something was production best there's -- not But a evaluate to output, something you'd our that we can macroeconomic Sorry, -- Yeah, It's this is I about. we decision. just conditions, we Zach. make like

Zachary Kirkhorn

right. are a team, where get leadership team. basis very into details that's weekly review But mean, is something certainly, reasons as by we the subset on globally we the and stand that's why the actively I managed it decisions made. I think certain of a can't I of a

Martin Viecha

you. Thank

is, than believe be Energy? provide will bigger Tesla guidance and And formal The overall more you second still Tesla will Energy when question auto? you do on Megapack

Elon Musk

clarify than Yes, standpoint I deployed. gigawatt the hours total like should from just of auto bigger like

be So its storage. hours may gigawatt possible higher will automotive revenue be probably but I stationary with higher, think

to than storage. the there is storage to just If economy, sustainable -- there stationary what's needed look world at more energy needed energy transition mobile the you is a energy

stationary of well are we in automotive. seeing of excess storage our growth So and --

in So that is with line expectations.

Zachary Kirkhorn

margins, next question, this for Yeah. have with maybe, Martin, part we single which can and question, the combine And on the on the there. guidance a guidance just is of comment

Megapack I the think storage point company, business combination we, a both guidance are a of and storage we business. where get say -- Powerwall the on we will is as the business. to the provide I

from the has and pool Relative as financials to But terms volatility the that of still business customer currently, a as it. of far and there. business as volumes fairly small this lot just of the the volumes of And revenues we're think diversification grows I smooths total don't company, out, both small. given in it's well away

day think about release year. two including on our expectations start doing the can our over and we these deliveries a talk I as formally that we'll business production and something more then coming is volumes

will I be think few get there. we before it quarters more a

Martin Viecha

was answered, said, let's next as The go so you. to already battery the Thank question, question. you

Zachary Kirkhorn

Sorry.

one other mention wanted thing on I Just to margin.

we're in the business any where think just the gross seen While probably margins in we've generally there, guidance we we to set to We generally providing for go what program vehicle margins, this mean, business. on launch. historically of not I of specific will mid-XX% terms ballpark that expectations of look

we're so there not business, working that's what we're And yet but on towards. this

Elon Musk

We're a an hopeful but to that's year, get there later aspiration. promise. not this That's

Martin Viecha

expectations well XXXX until are those The meeting How the on Day? is, cells it be Thank long the next goals? Drew? will meet the Battery described cells how you. question

Andrew Baglino

Yeah.

the making was we structural areas the factory these a cost-down road map discussed, all itself, progress Day, and XXXX concept cathode of anode we've then. materials, Battery effort. been established the on of and across across design and cell There cell So we pack five aspects since through

factory Texas factory, pursue with line partway reduction For in like and we're ramped, what And future continuing described are the fully factories build-outs the selling XXXX gigawatt commissioning opportunities Nevada. typical when and be we hour Battery further per lower operating investment in XX% cell than CapEx in on will and Day. to through densification factory cell building and

the manufactural design, today. Battery tablet in generation production version first more but Texas cell we only a in the On cell in second we're unveiled not Day, with

Day per road number map. On we have of the the a cathode materials side, underway Battery activities

May. this our For Christi breaks ground refinery Corpus lithium, Lithium

to byproduct Battery no concepts It process all construction sulfate-free these goal of refining embodied is can caustic end refinery commissioning a the energy. spodumene of of that reduced the start be portions process the acid with beneficial or Our We repurposed The before facility in lower reagents, on Day. the materials. produces uses discussed actually year. costs,

that are the waste cathode Same this both Austin technology end scale phase Battery our the lab cost, process successfully cathode we've on for facility. in we demonstrated precursor and incorporating with into described pilot and water lower process at detailed Day zero of design front precursor,

new On of the quarter commissioning target next year. end are and XX% a our our XX% cathode utilities wet we equipment and dry material installed cathode quarter goal at in building Austin, the first produce begin with this with and to to production, before

and output improvements we cells structural one. this year. design the floor architecture to pack the manufacturing the XX% We XX% of with the do structurally to per concept, use is pack future We'll the hours and believe same the and pack, to while XXXX execution factory the saw A-level gigawatt It's in a programs. lower smaller structural a good with Structural load iterating as B-level vehicle big for the concept closer in as cell pack continue of simpler. CapEx

in the Altogether, for Texas and XX% XX% increased production cost the catho of about over And one, COGS track accomplished cost we through the to by made significant achieve and Cybertruck the zooming quarter, team, XXXX we production team cost the by and steady-state both We out going in are for priority, year. rate XX through increased ramp is forward year, yielding months. peak the improvements yields on over next of was next XX% improved yields rest quality. quarter-over-quarter XX%. and targets And QX a XXXX areas. reduction steadily ahead all the program as XX% the increased for

Martin Viecha

Thank will you credits ex you the is, next do pricing margins current XXXX The what question much. anticipate company's be very at levels? automotive gross

Zachary Kirkhorn

lot and a Yes, of on to which what's I basically of subject there's also is is asking There's go. costs, in one. do the set projection and going costs which headwinds macro environment There's the within of this a we're make macro in a question think start in I uncertainty. And costs about of on world. viewpoint to kind set like where can we costs will that's This off control And difficult a this this. tailwinds. a

work intended to Drew things COGS. control, then cell, cost ramping most in on part there. we're Austin which into the Austin factory cost of volumes bucket Within optimization a the down the we around mentioned, the as our of is Austin is, And our stabilizing the cost doing input XXXX that our we get the journey an is that factory, of the working and once

course the the of as of factory good and so, non-cell the portion year trajectory the Drew in see a on pretty program cost, and then the XXXX we the And over as improves Austin improves mentioned, facility.

Berlin still localization to factory. have the A an as story is journey but in exists for that the not XXXX input, does ongoing. complete factory, It similar

Berlin over localization do the a factory to of more see good the well. increases, reduction volume this as cost so, year, And occurs, in path we course as

handful metrics factories, on do and aggressively talk a bucket other the the across it, see philosophy every we call, existing There's every key there. we're we that we expectation have influence, costs of that to going factory improves the all don't so in progress also continue can. every I In to about cost is but we their is but need here existing this of which rehash that,

we major great that two where optimization our advantage job, and is control, fortunately done a logistics, spot the I Within can. being taking favor, supply the in of our moving think reduced both has they and world don't costs logistics on there chain rates which team

our chain you supply to thank So team.

little QX, year. but... little more half And a huge kind structure a the at pain in bit It in maximize of our has world, think be which in see, kind cost We a or say, -- over improvement commodities page in and did of cost been in then commodities last second still the for QX, improvement. so, structure. to there's max of down years the last, bit of of We start we're there'll point two the maximum our

Elon Musk

lot. significantly. Lithium of a the dropped price has that It's has mentioning worth lithium dropped

Zachary Kirkhorn

And impact down the And, second as that see in Yes. have a impact of a to that's generally, meaningful and we prices expect year. more half piece expect on to commodity come the the we more in do QX. company,

Elon Musk

Yes.

Zachary Kirkhorn

approach. just mean, nets year this see lot of a I So to out, our have risk, and How is progresses. that how we'll the

Martin Viecha

The recent global the round since has is, order tracked how Thank you. intake of most cuts? price next question

Elon Musk

excess orders overall we the think say I production. are thing is can that in of

Martin Viecha

to that Thank pricing you. maybe make and it updated last the features specs new give Cybertruck can investors, question production? will from and any And for you

Elon Musk

while. save the a famer, around in we'll this think. it's hopefully saying I QX am this Cybertruck I is once it's a year. end And And an confident whole be think will one which that long of I Well, only for comes thing incredible of product handover, a that, product, the like of

all. amazing. So it will at not disappointed It's be

Martin Viecha

analyst go Thank We'll unmute. you Great. ahead to Alex with And Potter go let's and questions. Piper Alex, very from much. start Sandler.

Alex Potter

Can you me? hear

Martin Viecha

Yes.

Elon Musk

Yes.

Alex Potter

Perfect. Okay.

on was there. question growth -- first it's the So, Lathrop. to see that's great Obviously,

wondering Just deliberately just Demand, sort curve to be Are closer S limitation. obviously, isn't working when the the might you think you up facility that utilization? full your way there? of

the utilization I So unlocking guess, what are what are to there? full steps,

Andrew Baglino

some the But in parts side. we factory the year with And following, of are classic ramps We of have There on two also addition, aspects are with that some actually we those and that general assembly Sure. unlock of We side around phases the our on suppliers the going Lathrop. CapEx the there. had see we facility. electronics in faced the on what's latter so will power both sell this in half inputs. of of

So the online overall of year. of the second CapEx phase with phased facility towards this was end coming the

Alex Potter

effectively? your And guess to, on Great. Obviously, lines in Berlin What for guess, in addressing Australia, yet vehicles markets serving is allocate regional you're of then areas. gaps I ability think Shanghai. your Okay. Asia, not serve Southeast your your do more to facility opening to Thanks. ability are second exposure? should those the other wondering some my question just regions out you up be of other I other maybe I'm what time

Elon Musk

parts because not Yes. respect still are That's vehicles especially. a that question to we of the yet serve do good there with world many

of So while we individually up to those a markets. world. to up significant. markets collectively sum whole they do bunch something necessarily do gigantic, And not add markets are to expect around new up add do open the They

and high the that it's its is So cars time operates do. the to intend of we to rest Tesla that that something world,

Martin Viecha

you Okay. very much. Thank

Canaccord. analyst, Go next the and George to unmute. go ahead from Let's

George Gianarikas

my there? seen also, positive And and you taking FSD your whether to you've take reduced given vehicles, you've that you as or I do for FSD you any discuss the prices change if question. significant Thanks. was for think for Thanks negative that could Hi. rates first, wondering, your do need well?

Elon Musk

enormous. is the answer of FSD tricky question, on car the the kind it's a value can autonomous take I -- that a rate, of is Well, details pricing the because but

So of full one is those There'll that the using for trying forward, very I are value towards beta. mean, dramatic. this to really can full autonomy. do And will steps is the very releases bit you in step autonomous And vehicle. be clearly two self-driving, I that the value yes. are an for back a is see I improvements but I an that way, hesitate right the -- quite FSD those But a trend this, think now beta, between really option the it's -- ultimately little towards be think we'll on price year. And significant. say it

So Yes. that's what like. looks it

George Gianarikas

think we've of to commodity those several or you EV a dramatic reflection do Thank Thank that a indicator sort Do the and change of you. how in kind coincident over And the Maybe is any overcapacity seen next you prices it's you. track refining, global of demand? in on expect prices. EV-related recent mining on quarters?

Elon Musk

Man, answer I have if really. -- a provide value -- we don't to question would ball would can crystal any with wish I had that I your know that a question.

think in a to crystal I'd But somebody I like are can ball it. really times. borrow uncertain these me, times. uncertain we're And got if lend they

next and that My so. to getting provided start this we hold guess this then weather geopolitical XX that speculation. then XX no show year a Stormy but months up, around there are months guess. roughly year. It's pure if my or sunny is is it's major and just then spring for things for whether me wildcards -- about about And economic

Andrew Baglino

spot not isn't liquid, of -- all super less -- not of example, thing only And market. like materials. EV and market -- storage single-digit all materials like there's The some them, are They're the like actually on for of not than the percentage like the fast for traded I markets. only would particularly they liquid say on has not super

demand really like price mismatches and drive, wins, swings. price just but So in supply wins, large real like small temporarily price like not large

know, to So to want add those anything. read it's into if hard wings. I don't you price Karn

Karn Budhiraj

is this by Karn, the Well, Yes. way.

We of a This a are softening -- XX%. ago, seeing, spot at as about Elon is bit trading today's like we $XX,XXX six months carbonate quite ton, market. was in the mentioned, lithium and were price

been dramatic there's decrease in that. So a

earlier quantities we find decade. we fixed going another impacted advantage And opportune the the is we Of the price contracts to not this that take that to be doing going later to on be pricing -- opportunity and extend low moment of course, of at we half market contracts. place, lithium of able into -- were those basically in we're have the But procuring, because that. spot by we're and as going to we're just more with

because ambitious The the other more the about well as more resources is a America. of locations price in exploring upstream in of Africa that are lot business are and thing becoming that's spike, as happening this companies South finding

So with situation that's helping also macro the pricing.

Elon Musk

emphasize, much common is to choke and more is actually it just But in just point world, a the The more than is never on on the throughout really the it's front, capacity is including on element the on common -- very Yes. mining. -- refining lithium. lithium is US -- very theme earth,

So, question basically. can ore. the and more everywhere where it's lithium keep up? really a the the where capacity more is refining That's what It's than capacity matters much refining of is

our at this we're same also the Corpus degree, question lithium our is Christi think Austin. to refinery the I refining refinery building cathode outside refining capability anode. cathode And to Tesla, we, of and extends that why and of some at

noting, I thing. same other hope worth do companies It's the

probably a lithium than I far, in more and will refining cathode most most capability We else have, the capability by everyone think, lot. combined North the America, by refining

instead be lithium, someone please, can would to industry, trying, a We're begging do heavy on. Like and So, great. it. app, we're making people want We please work? of That refining, please? mining picture-sharing you. other do Can come don't those

Karn Budhiraj

It's fun. It's actually fun.

Elon Musk

Exactly. Yes, yes.

For real.

Zachary Kirkhorn

to ready buy. here, we're That's

Elon Musk

It's -- famous want we it. because not Tesla is to do

and fish do wish doing doing to We it. but others would we we're because aren't lot others have of a it it, obviously, fry,

Martin Viecha

much. very you Thank Awesome.

Let's go Bank. to Deutsche Emmanuel Rosner from

Emmanuel Rosner

Can you hear me?

Martin Viecha

can. Yes, Yes. we

Emmanuel Rosner

for so you strategy. pricing first taking questions. much Elon, your my Perfect. for a on question Maybe Thank

the you're fast you Tesla this maximizing as be message, So, it's saying understand the if worth size the able vehicle. as you'll feels of of volume, cycle fleet increasing your the monetize life because can I to the over

bit ways be understanding Obviously, existing but you be I around be a monetize piece you big was probably specific a next-generation to more for the my ones. little fleet of think able Could would the this future. vehicle, it, sort in not to be that of like autonomous the would robotaxi existing seems

guess in would I you monetize So, ways which it?

Elon Musk

can it the are of term robotaxi very working that's obviously And is be on confusing next-generation about This vehicle. time generic our be That's sort details bit Sorry, we next-generation going product. just talk for vehicle. the like terminology to a a because not to compelling. in

vehicles our But autonomy. X, that So, we robotaxi. achieve of we will of Hardware have majority the internally call it believe all really, which fleet, vast the full is

there or be So, taxi. a will Y X be would Model robotic like a Model a a robotaxi,

that's knowledge best current that believe yes, of achieve to So, we autonomy. full hardware my the -- can the

Emmanuel Rosner

the And automotive Zach. Back on question then for Understood. margins. a gross maybe

So, terms macro the the Anything is frame deteriorating? of after a a think, differently in Is even macro else just you price Obviously, months of there else anything that was floor? automotive a makes additional strongly you has like changed and landscape? guess, a floor. felt Is think And have that's price year? reasonable XX% happened. the therefore, outlook? I full ago, Is it the cuts, gone probably margin gross there has to the that around sort competitive I it still way, worse cuts pretty major few

Zachary Kirkhorn

you Yeah. argue attributed sense. pricing so the a quarter. made in floor quarter. that far miss also We've of could adjustments of lowers quarter to the About previous that against made I last guess in second that I this we the the is half mean, pricing half in adjustments conversation

it brings down that So further.

nonrecurring. half was to things that of in QX the miss are the other About attributed

should of some autopilot-related up. we cars building for I technology cars but the So this changes some in as deferral now opening mentioned pedigree and these deferrals software previously we're warranty here make my that once produced a that of part of were the some catches get not It's recognized adjustment remarks.

things So not those are two repeating.

So question. hopefully, that helps answer your

Elon Musk

factors there's tricky. that I The are two rate. macro Yeah. the being biggest mean interest really

if a raise It Fed as the increasing interest the rates people the high are very every to function are afford interest they very of monthly is basis. a cars that price the there's time that's car. makes cars rates of less to a a So affordable buy -- high, or Fed rate equivalent on because what can able

-- so to that's almost increase. a equivalent directly it's kind So just price interest of increase, is any rate there

Then the a new reaction. other in like people factor generally uncertainty is -- This economy, new purchases natural is the is car. whenever there will postpone capital big, a new human

are layoffs in like, So might and whatnot be might they if they're about be worried -- people they press, off. well, about laid the reading

naturally more would a to buy otherwise new there'll hesitant than little a So car. they then be be

new Now the cars. nature demand a is be for auto the trans there this of of just amount industry. is there will pent-up But --

through it cycles. goes So

Martin Viecha

you. Thank

from Ben go Let's Baird. go ahead Ben unmute. Kallo to and

Ben Kallo

you then at versus investing in that environment? have manifest about the and things you mean, about Dojo heat guys. outside going do Tesla. and right is can being pumps like of all else have rank talk to you it? Hey vehicle economic we everything When in look you not the you that business, How supply, talked sell product on way going on or the the I a

Elon Musk

at shot think long But still level. a dollar that very, the to potentially, bet will multi-hundred I'd long-shot look very, or multi-hundred it type dollar it's it's But way. but a kind in if bet as sort I'm And yeah, way, big say category, bet, very pays take you off, like your can outcome. so off of not sure thing. a question, in very put the like one pay bank but not potential long-shot shot in a long the but but it I Dojo a a of billion making, fully of like – potentially billion it understand in it's big with Like I worth

days it's these as it bank, the to take secure used Although, not as to maybe it be.

on offices pumps. And to a all big the commercial really And back and obviously, heat stuff. item. technology good. So good in have it's is But – and it's for pump believes do over that burner time is really heat a that homes that's still this we

Our focus solving like if fleet that autonomy, solving autonomy, is with a solving update have which a basically able be vehicles autonomy, of very stationary to vehicles, several storage, we're sustainable much on can would million energy be in and potentially asset worth will value happens, I be the several if – biggest that will – it times that that that's their happen, be the be think original – that software and I will history, value, think. will increase –

Ben Kallo

you. Thank

that you to to about share again. or versus pricing gaining the you. of do look the But talk Thank or not ask but equation? share. of guys pricing, Sorry Moving about into a pundits at losing does how lot sort come pie and or pricing the EVs price vehicles,

Elon Musk

I'm has every there's must that's real-time daily just we were more than company We except sure, day, No, on any not yesterday. there's – of ordered real-time if were data how a company have like maybe better that earth real-time yesterday, got really a produced it's than how many update Tesla cars Tesla, cars get SpaceX many – data Starlink. –

were don't to long out make cars time cars. data figure them the So send will – And for many because quite a for car then like we other to sell how dealers actually cars, the companies, to will get the to it then the dealers back the them sold. have takes -- the they

ordered know how cars yesterday were world. we throughout many the Whereas

have other So of real-time on is pulse our whereas and fingers lot latency a car in the does the their companies not latency, have data.

latency in has the a of lot the government does As government, data. their

and happens what then okay, to a our course. So achieve take price production? we're see And pricing and and immediately saying, change, adjust it we we'll a just what vehicle looking make clearing at for does

we and days decisions make the lease try – And can. the Every about so e-mail And we're rest our thinking that day, good. pretty that a down of seven is seven course team. adjusting collect it are the and we're think we decision literally I balance, every we So to on week. days,

down, I but be industry. the than they'll the average, rest better on they're, think, of Sometimes

Zachary Kirkhorn

Just a ICE. lot. EV or to add on market the question This about comes share up

mission debate lot I this -- at way. electric the public be it to look internal the that EV engine combustion vehicles. think look switched actually, And as at it a we is concept market. a the cars requires car it's around mean, market company share. to I of of market the and We not EV don't of over

to. attention So that's pay what we

Elon Musk

got I've it I've said the at it you we time, to market. start selling, Its going EVs. as long time. are this just All be EV Yes. at that a looking for will It's stop last that way. many to EV looking got guys too. -- -- -- cars said how We cars

items. in A back, the steam gasoline steam engine a cars there's civilization They're collectors' look is engine the on years, look don't look know, combustion engine internal is cool XX still kind is combustion how quirky combustion back few kind engine on and in we We'll external back of same future. engine. vehicles we'll around will I assuming like vehicles, which That's an around. of be still external vehicle. the And way

Martin Viecha

you. Thank

Colin, please. Oppenheimer. Colin go ahead. go Let's to from Rusch Unmute

Colin Rusch

structure minus lithium seeing? Can talk you a if that cost volumes you guys. much, on the actual us And these on much you're is about those little range of within how pulse cost a give the bit variable so contracted Thanks could or vehicles?

Elon Musk

I a time most -- to but don't again, of scale have we'd what you're on at, here, Depending we it. have is looking variable. think the car Well, ball crystal love really

variable. is cost most So

expectation. is improved I that I we So -- from if see think yes, guess, probably, I were will will -- suppliers, and costs our to think we

Zachary Kirkhorn

already we're starting way prices lithium had of the lithium through happen flowed crash same I a in we battery and see into you And mentioned by anticipated Elon, carbonate will before to the that with reductions And some has thing hydroxide. cost. lithium that think that, of

far the about very also, chain of what we're The length talking upstream. matters is because supply

that the up be by It So battery car. that time sense will months. several makes ends it in

as make mentioned also earlier, efficient. commodity very But focused the metrics that pricing, beyond on just production very other Zach we're

expedites. air demurrage and So, for example, detention

our XX%. be dollars and down vehicle. I of the air of per hundreds XX% expedites is That think demurrage can Detention peaks. from thousands are down

of attacking becoming So efficient. and vectors we're very sort all

Colin Rusch

my about global storage US. And mean, the a sales? there's demand in of for much is you for basis? you're this storage at And point I that a of gigantic around on the around scale. stationary then, actual follow-up quotation volume into And can interconnection queue on renewables Okay. is converting seeing obviously, talk how the really the utility stationary queue

Elon Musk

to Drew, take do want you that?

Andrew Baglino

own and our of renewable stationary our variety best also we products, in projects. a we're And being mostly develop developers energy different and just like pick that's on exactly we're into of we the how look pipelines that projects objectives. engaged the have our and we're just -- the mean don't we're -- we ramping not Like can, as yes, We're it, not quickly at Megapack visibility really. I queue. in selective pure I mission also storage focused interconnection and not the and yes, -- we as efficiently trying -- fit to

Elon Musk

fronts, This not product we're again, this but is many -- Megapacks. a Yes. -- something, have including we'll call, improvements on making mean, I this

of think connect those the some the you improvements grid. will which improve I the So at speed Megapacks to can

Martin Viecha

Sachs. from from Thank next Goldman is you. Mark Delaney question The

Mark Delaney

or Good about Yes. case X still X reaching volume mentioned the units X.X is the is you point? this for you gating in or more factor chain, taking as as Thank call, year? an Do And your still afternoon. units was supply demand see last on question. million XXXX for at million it upside million for conference this

Elon Musk

me you case. times. to have this we've at got well, are X a From you But if go unfolds. a that's this to if X.X back ball year. Well, an vehicles situation. see comfortable ball million standpoint, These production lend can we'll shot upside feel And the how year volatile crystal And have a things million. crystal with we

Mark Delaney

speak had That's the charging progress up to non-Tesla vehicle spoken And And you've here? Can past Thanks. getting you the of the both its then Day then how the calls owners? and helpful. of Thanks. feedback and owners charging Investor conference from been Tesla ramp at some the from for the network. about network company opening may

Elon Musk

that? Drew, you want take to do

Andrew Baglino

Yes.

the indicative the VX post America of in heading with So North is Magic Dock we Europe opened and that offerings to cetera, I may direction in as our seen, out you improved mean, QX. roll in major all we is, for our markets, vehicles we're those build no all et where as going post charge in and we're continue have port first universal compatibility of matter to sort new stations.

to new that. when like We're customers serve customers to our our doing own our serve ability always balancing ability with

to rather able think it balance we've well. been I

without increase of and in our all to are to For open Europe, example, supercharging of been at for times able we've that do wait any anybody. XX% in EVs, stations all all

America to approach over going North So we're coming and we China do the take a continue as this to in quarters. similar

Martin Viecha

very much. Okay. Thank you

from Wolfe Let's Research. go Lache Rod to

Rod Lache

just I with you Can how business? just and revenue, also the the cost of your on into to automakers just a And will supercharging color in unit follow-up comfortable about brackets you and to first give might economics everybody. most other account letter provide just willing this? be initial network and position the others attributes. leveraging your margins taking you'd take maybe given far your comments other struggle expect there the Hi, in with? range a actually Are that of margin on be your lifetime way wanted updated any again, that see you'd service that range auto as never that sense in you'd around us of

Elon Musk

this may is this difficult the question like. think or a what have to depends macroeconomic But what it's on be. say the I It few to margin environment ask tried question we answered will times.

that the just example, were buyers If car. lower pay the for be to for a for buy them, that interest Fed raises if they rates, the super would have to helpful demand. costs that to raise So

therefore, reduces and affordability reduces it So demand.

up. geopolitical So albeit really like major it's say, sometime middle are -- of like things but end very next absence think, in about go wildcard some that I year, we I if think But would if said, look year next next be of so middle of year, -- next year, turns past, the optimistic year. looking I like there's that, -- or I of if I think this

Zachary Kirkhorn

this two investing for addition Just Elon's to the to us points. of in, as like. just look but year what also comments, mentioned, day-to-day in XXXX other just managing important will to really What's is XXXX and Elon the add business

context this using that couple reinvesting only so important cash our ability And what the today next generated think what from us. the that, the matters to products of in for means margins of is that I for over reinvest quarters And very and XXXX happens that of the into to and sale XXXX.

investment revisit have a lot of we that before becomes have our And we space something plans. that to

over to into keep when so about happens the folks positioned I just planning that And healthy. making to way. want much exit as very on near-term focused the reading we're this because here is we But macroeconomic possible company best business what caution sure too in we're a this the situation, company

Elon Musk

exactly. Yes,

Rod Lache

to long-term though, Just targeting each elaborate you're that is lifetime the point vehicle on that revenue, from revenue massive. the

Am with that would right? the to comfortable a initial it that that, relatively you'd So is exactly extreme, that I if seem be low you margin. took or misinterpreting

Elon Musk

Correct. right. That's exactly

Rod Lache

elasticity consumers recession, financially actually Okay. And price less in feel the secure, when a deteriorates. normally, --

elasticity the Just demand? pulse a of consumer, on taking based your on do view have you of

Elon Musk

Well, of enough affordability. question I emphasize fundamental -- can't the whole just

or their a to can car people, of function a make they most ability For is buy not. monthly payment

are if some really all. high, people get I can't they said, now, And interest are right cases, loan then like a in rates so at like

banks loans, I -- in pretty I these days. not leaning it's are think expect, forward providing -- So probably

sell that's Tesla uniquely mentioned to the ago moment back cars the and I've -- significant. is like for technically, ones many position. when we're profundity a a said, future strategic moment something -- here there could through actually ago extremely So only how for economics can story that zero what will -- autonomy, it there I'm strong no as tremendous people powerful is you now going of a do profit making to the else Because -- alluded yield but quite that. one is I a we is in just in then sure that not appreciate

Martin Viecha

Thank you.

Adam to from go Stanley. Jonas Let's Morgan

Adam Jonas

Hi everybody.

leg. Break first, Chica. Boca Elon, So, of luck good a tomorrow's launch with

Elon Musk

Thanks.

rocket much too have for can't luck the business, in You sure. that's

Adam Jonas

Incredible.

of So, business now the that architecture model? X.com Super another intimately to potentially what or an you've Tesla's stakeholders App six months, you well accelerative Tesla about could over how can gotten tell kind be past Twitter

Elon Musk

it Well, potentially know. I to it I make don't buy make guess it easier could cars.

some there's topic We've string here benefit. -- So, somewhat off I because think

some yes. there's benefit, probably think I

Adam Jonas

Elon,. it, get I

in of you'll bust. you're And moving around And the another XXXX, a back Ford follow-up that which just introduced T, history. Highland had Henry So a undercutting car rival fell hundreds or XX%, line price of as been Park, on Model Michigan. of assembly manufacturing, cars the companies note XX% and student a already in went time, the

forces pattern I'm compared ahead just repeating here, it's some it changing competition? of in supply to reaction -- in could competition your history or in a the recent we Elon, curve catalyze is market, this strategy, seems calculated Darwinian wondering like demand cuts is itself and -- but if the not way EV market? Is you that with cost the of the to

Elon Musk

like that to competitors say, to about pricing we're order We anything mean, our -- how people afford cars? like actions at, deliberately really don't they cars, deliberately be product like sort the Well, that. undermine better, not We service much. just And take trying we look can make and do I can think improving whatnot. to in our things or of the the competitors

have do is is making in worth a strategic lot we than a hell be actually, that actually that we pans will future if car more But now. unique asset think it where autonomy a have the this and -- will, it we advantage we're out that

profit, to cash possible flows net is of taking present asset sell associated still be it significant. it to value zero with at but have future very the So, that

Andrew Baglino

these revenue have. and ongoing service of companies charging other don't all other and insurance that and And streams

Elon Musk

Yes.

Karn Budhiraj

to EVs say attacks some just too. We want all succeed, to try to malicious everybody. not destroy want like we to Certainly, that we're

Elon Musk

opening like made We're for free. not. patents up We've available our Definitely superchargers.

trying we're to helpful it's So, here. like -- be

So we we're anything frankly, not competitors We're to out can. or competitors, like help trying any that. to destroy way in

Martin Viecha

you. Thank

Barclays. Dan to Levy go Let's from

Dan Levy

Hi. Thank Good evening. you.

and supply Austin Berlin. ramping you're at question, First

environment some further pace the to historically, allows just continue integration going that should expect your it questions. the -- demand the you've you're get critical you just supply that wanted to max we continue at of to to in of to how your is within mean, those whatever broader vertical the capacity to market produce broadly, volume there? just increase the we produce I to to is which get that constraints, what at operating gauging out at your volume demand. face -- economic allowed to as regardless generally Should I the understand just opposed supply plants And at So been to you're with benefits

Elon Musk

there -- cars the macro be yes, continue clip. obviously that mean, output that buying people a like in will some could to severe shock for is just so stop of But at I a is grow that absence that, we rapid So reason.

Dan Levy

the Thank And margins on Berlin. with and just Great. then associated Austin you.

could you those mentioned benefits Berlin of don't you the are. get have Austin know want you like intended us volumes. versus You what look profile vertical I integration what in the volumes margin you remind place? Shanghai to the margin once And drag until will can disclose of then reach if maybe and Austin just

Elon Musk

-- quite as make is efficient have hard well. and one cost a to make obviously, be Austin Fremont improvements very Berlin and structure probably to significant as lowest good to structures, in -- cost the do continue in be improvements as world. we Shanghai. has in our Well, Shanhai But expect

So...

Roshan Thomas

localization by -- efforts. the We our increased this is way. We've Roshan increased

quarter-over-quarter So made days will and in on-hand days XX% that our on-hand. We've and then drive down improvement requirements.

that improves. continue we'll localization So as a

Martin Viecha

very Philippe Jefferies. final Houchois our And from question Okay. Thank comes you much. from

Philippe Houchois

model in should or market words, the a other direct And taking -- selling so it? need fell market market for EV as share you wondering, term. is comments for your of into look about share share and of longer share. not you business I importers And date think kind as agree with develop smoothly, there you we practice the at should thanks guess, by question. more direct and agency today? auto evening, just there terms forward, globally? in model you build basically to It's I completely as to market we the good look is using limit Yes, going the I'm up it Tesla the that business But to globally, practice slightly

Zachary Kirkhorn

working with interaction we I'm unhappy just far different service, wondering there change. human the be pains from or lead miss customers and the because growth in you're would some to hear if feedback well that so Seems who to seeing you

that? You're not seeing

Elon Musk

are I where -- history which Well, than This sometimes we're mean, in have geography to depends sometimes of company and any going is some at Telsa's growing, I since about always I on faster complex there it's sales. where we're is makes mean, growing talking it large times -- object. a -- behind pains ahead that manufactured service sales, believe,

– are as these you max match So try always exponentials. to – it's difficult to

we address car loop misalignment dealer incentives service. the say you for actually, then think us service the service. design And it revenue, money upon they're service. a no is if The doesn't we on need that of service, we can service gives servicing car want the the services then break. have consumer have arguably you that have doesn't making the But the structure, a pain reliant less car whereas the means make is where helpful because thing So to a of – best like and network so. to the incentive because is – And is feedback I the I need right but that think best with to feel

Philippe Houchois

them out, last mean, comes for at And the deficit you you profit servicing, in worked can Have then and of have I profits amount up. your don't that competitors, of traditional selling structure. your and parts you for spare fair many have I have one, And from a your peers? compared follow looked Yeah. you to if

Elon Musk

at time didn't auto one because understand and longest Yeah. Tesla while the Tesla a assuming about wax on not the was for the fleet I against does a have blades to then that a thing. Actually, razors could the the newcomers -- argument that and and and short-selling sell existing zero best an sort people fact this industry, reason for really, sell to margin, the that the is type they're and very succeed margin able at of reason parts incumbents spare high large have incumbents fleet, biggest that close fail, new cars

so And is that to way a in are only product to is the And of people over product. a newcomer to can don't pay and compelling succeed. to a have incumbent succeed willing think autonomy, the electrification that premium for I actually the succeed so a newcomer absence

Martin Viecha

have three the much, months you. see Unfortunately, we time this very now. again from quarter. everyone. you Thank Thank in you all for We'll that's

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