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F500-2023-050-Tesla

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<ul> 
 	<li>Tesla slashed prices multiple times in the first few months of 2023 on various models to drive sales volume, but the move squeezed the company’s operating profit margin and dinged its stock. Tesla raised prices again in May 2023.</li> 
 	<li>In April 2023, Tesla won a lawsuit that had aimed to hold the company’s Autopilot driver-assist software responsible for a crash years prior, but it faced other safety concerns with probes into faulty seat belts and steering wheels on some models.</li> 
 	<li>Tesla CEO Elon Musk announced his CEO successor at Twitter in May 2023, a signal that he would refocus his energies on Tesla; Tesla shares rose on the news.</li> 
</ul>

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F500 2022-Tesla

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<span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;Elon Musk’s electric-car company cruised to No. 100 on this year’s list. It’s a big accomplishment for the automaker, which brought in $31.5 billion in sales for its fiscal 2020, a 28% jump over the previous year. Tesla also reported a profit of $721 million in 2020, driven largely by regulatory credits. While Consumer Reports ranked Tesla second to last in its most recent automobile reliability survey, the carmaker still captivates investors—not least because of its recent big bet on Bitcoin. Tesla remains the most valuable automaker in the world with a market cap of nearly $600 billion as of May.&quot;}" data-sheets-userformat="{&quot;2&quot;:12673,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:2,&quot;11&quot;:4,&quot;15&quot;:&quot;Calibri, Arial&quot;,&quot;16&quot;:11}" data-sheets-textstyleruns="{&quot;1&quot;:0}{&quot;1&quot;:312,&quot;2&quot;:{&quot;6&quot;:1}}{&quot;1&quot;:328}">Elon Musk’s electric-car company brought in $31.5 billion in sales for its fiscal 2020, a 28% jump over the previous year. Tesla also reported a profit of $721 million in 2020, driven largely by regulatory credits. While Consumer Reports ranked Tesla second to last in its most recent automobile reliability survey, the carmaker still captivates investors—not least because of its recent big bet on Bitcoin. Tesla remains the most valuable automaker in the world with a market cap of nearly $625 billion as of July.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-100-Tesla

<span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;Elon Musk’s electric-car company cruised to No. 100 on this year’s list. It’s a big accomplishment for the automaker, which brought in $31.5 billion in sales for its fiscal 2020, a 28% jump over the previous year. Tesla also reported a profit of $721 million in 2020, driven largely by regulatory credits. While Consumer Reports ranked Tesla second to last in its most recent automobile reliability survey, the carmaker still captivates investors—not least because of its recent big bet on Bitcoin. Tesla remains the most valuable automaker in the world with a market cap of nearly $600 billion as of May.&quot;}" data-sheets-userformat="{&quot;2&quot;:12673,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:2,&quot;11&quot;:4,&quot;15&quot;:&quot;Calibri, Arial&quot;,&quot;16&quot;:11}" data-sheets-textstyleruns="{&quot;1&quot;:0}{&quot;1&quot;:312,&quot;2&quot;:{&quot;6&quot;:1}}{&quot;1&quot;:328}">Elon Musk’s electric-car company cruised to No. 100 on this year’s list. It’s a big accomplishment for the automaker, which brought in $31.5 billion in sales for its fiscal 2020, a 28% jump over the previous year. Tesla also reported a profit of $721 million in 2020, driven largely by regulatory credits. While Consumer Reports ranked Tesla second to last in its most recent automobile reliability survey, the carmaker still captivates investors—not least because of its recent big bet on Bitcoin. Tesla remains the most valuable automaker in the world with a market cap of nearly $600 billion as of May.

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

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Future-50-2020-Tesla

Elon Musk’s EV and battery manufacturer leaps up the ranking as it becomes one of the world’s most valuable companies. Why such potential? Furious expansion of its global manufacturing capacity should allow Tesla to begin producing greater volumes of cars, thus improving cash flow and justifying its eye-watering valuation, and perhaps even dragging the auto industry into a fossil fuel–less future. (See our <a href="https://fortune.com/longform/elon-musk-ceo-tesla-spacex-2020-businessperson-of-the-year/">profile of Musk</a> in this issue.)

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F500-2020-124-Tesla

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Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Future 120

Tesla is a maker of electric vehicles and energy generation and supply systems. It is the largest manufacturer of electric cars in the U.S., and, with China’s BYD, one of the two largest makers of EVs globally. Tesla was founded in 2003; Elon Musk became the company’s largest shareholder the following year.

Q2 2026

Q1 2026

Q4 2025

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Q2 2025

Q1 2025

Q4 2024

Tesla (TSLA): Company Profile, Stock Price, News, Rankings

legacy

Tesla

tesla

Good afternoon, everyone, and welcome to Tesla's first quarter twenty twenty five Q and A webcast. My name is Travis Saxarod, Head of Investor Relations, and I'm joined today by Elon Musk, Dev Ateneja, and a number of other executives. Our Q1 results were announced at about three p. M. Central Time and the update deck will be published to the same link as this webcast.

During this call, we will discuss our business outlook and make forward looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in our most recent filings with the SEC. During the question and answer portion of today's call, please limit yourself to one question and one follow-up. Please use the raise hand button to join the question queue.

Before we jump into q and a, Elon will be providing an update.

Hello, everyone. Well, it's never a dull moment these days. Well, thanks for sure. Every day is gonna be exciting.

As so people know, there's been some blowback for the time that I've been spending in government with the Department of Government Efficiency or Doge. I think the work that we're doing there is actually very important for kind of rein in the insane deficit that is leading our country, United States to destruction. And the Doge team has made a lot of progress in addressing waste and fraud. But natural blowback from that is those who were receiving the wasteful dollars and the fortunate dollars will try to attack me and Doge team and anything associated with me. So but then I'm really left with two choices.

Should we just let the waste and fraud continue? And I was continuing at it to to grow at a really unsustainable pace that was bankrupting the country or to fight the ways and forward and try to get the country back on the right track. And I I believe the the right thing to do is to just fight the ways and forward and get the country back in the right track and working together with the president Trump and his administration. Because if the ship of America goes down, we all go down with it, including Tesla and everyone else. So I think this is this critical work.

Now the the protests that you'll see out there, they're very organized. They're paid for. They're they're they're obviously not going to say admit that the reason that they're protesting is because they're receiving fraudulent money or or that they're the recipients of wasteful largesse, but gonna they're gonna come up with some other reason. But that is the the the real reason for the protests. The actual reason is that the the is that those receiving the waste and fraud wish to continue receiving it.

That is the real thing that's going on here, obviously. So now that said, I I I do think there's you know, the the the large slug of work necessary to get the votes team in place and working in the government to get the financial house in order is mostly done. And I think starting probably in next month, May, my time allocation to Doge will drop significantly. I'll I'll have to continue doing it for I think we'll play it the remainder of the president's term just to make sure that the waste and fraud that we stop does not come roaring back, which we'll do if if it has the chance. So so I think I'll I'll continue to spend, you know, a day or two per week on government matters for as long as the president would like me to do so and as long as it is useful.

But starting next month, I'll be allocating far more of my time to Tesla and now that the the major work of establishing the Department of Government Efficiency is done. So at Tesla, we've gone through many many of crisis over the years and actually been through many near the many near death experiences. Like, we're probably we're on the ragged edge of death at least on maybe a dozen times. It's been so so many times. This is not one of those times.

We're not on the ragged edge of death. Not even close. So but but, you know, there are some there are some challenges, and I expect that this year will be there'll probably be some unexpected bumps this year. But I remain extremely optimistic about the future of the company. The future of the company is fundamentally based on large scale autonomous cars and and and and large scale in large volume vast numbers of autonomous humanoid robots.

So the the value of a company that that makes truly useful autonomous humanoid robots and autonomous useful vehicles at scale at low cost, which is what Tesla's gonna do, is staggering. I I continue to believe that Tesla, with excellent execution, will be the most valuable company in the world by far. But that's an important if. We must execute well. But if we do execute well, I do I think Tesla will be the most valuable company in the world by far.

It may may be as valuable as the next five companies combined. So but there'll be a few bumps along the road before before that happens. I said, I think, on the last earnings call that, you know, that we'll we'll start to see the prosperity of autonomy take effect in a material way around the middle of next year. We still expect we expect to have these be selling fully autonomous rides in June in Austin as as we've been saying for now several months. So that that's continued.

But the real question from financial standpoint is when does it really become material and affect the bottom line of the company and and start to be a fundamental part of the of of of the of the when when does it move the financial needle in a significant way? That's probably around the middle of next year, second half of next year. And then once it does not move the move the national needle in a significant way, it will really go exponential from there. So that's I'd encourage people to look beyond, like, the, you know, some sort of bumps and potholes of the road immediately ahead of us, but left your gaze to the bright shining, you know, sort of down on a hill. I don't know.

Some imagery. And that's where we're headed. And not not not too distant future, like I said, and the next year or two. So let's see. With respect to supply chain risk, something that that something that Tesla has been working on for several years is to localize supply chains.

Does it actually make sense from a a cost standpoint, from a and and from a logistics risk standpoint, is is to have have the supply chains be at least located on the continent in which the car is built. And so we are, I think, the least a company the least affected car company with with respect to tariffs, at least in my most respects. I mean, it remains to be seen. Now now tariffs are still, you know, tough on a company when margins are still low, but we we do have localized supply chains in both America, Europe, and China. So that's that puts us in a stronger position than any of our competitors.

And I I undoubtedly, I'm gonna get a lot of questions about tariffs. And I I I just wanna emphasize that this this the tariff decision is entirely up to the president of The United States. I will weigh in with my advice with the president, which he he will listen to my advice, but then it's up to him, of course, to make his decision. I I've been on the record many times saying that I believe lower tariffs are generally a good idea for prosperity, but this decision is fundamentally up to the elected representative of the people being the president of The United States. So, you know, I'll continue to advocate for lower tariffs rather than higher tariffs, but that's all I can do.

So now now let me walk you through why I'm so excited about the future of Tesla. So first of all, autonomy. The team and I are laser focused on bringing robotaxi to Austin, New Jersey. Unsupervised autonomy will first be solved for for for the Model y in in Austin. And then it it actually, we should parse out the terms for robotic taxi or robot taxi and just generally, like, what's the the cyber cab because we've got a product called the cyber cab.

And then if any any Tesla, which could be an s three x or y that is autonomous, is a robotic taxi or robotaxi. It's very confusing. So the vast majority of of of the Tesla fleet that we've made is capable of being a robotaxi or robotic taxi. And as we're we're going from once we can make the whole system work where you can have paid rides fully autonomously with no one in the car in in one city, that that that is a very scalable thing for us to go broadly within what with whatever jurisdiction allows us to to operate. So because what what we're solving for is a general solution to autonomy, not not a city specific solution for autonomy, Once we make it work in a few cities, we can basically make it work in all cities in that in in that legal jurisdiction.

So if it's once we can make it based to work in a few cities in America, we can make work anywhere in America. Once we can make work in a few studies in China, we make work anywhere in China, likewise in Europe, limited only by regulatory approvals. So this is the advantage of having a generalized solution using artificial intelligence and the an AI chip that Tesla designed specifically for this purpose as opposed to very expensive sensors and high precision maps of a particular neighborhood where that neighborhood may change or often changes, and then the cost of stops working. So we have a general solution instead of a a specific solution. Yeah.

And we've got Optimus. We're making good progress in Optimus. We expect to have thousands of of Optimus robots working in Tesla factories by the end of this year, doing this more. And we expect to scale Optimus up faster than any product, I think, in history to get to millions of units per year as soon as possible. I I I think feel confident in getting to a million units per year in less than five years, maybe four years.

So but, you know, twenty twenty thirty, I feel confident in predicting a million OPTIMA's units per year. It might be 2029. So let's see. With respect to energy, our energy business is doing very well. The Megapack is enables utility companies to output far more total energy than would otherwise be the case.

When you think of the the energy capability of a grid, it's much it's much more than, let's say, say, total energy output per year. If is if if if a power plants could operate at peak power for all twenty four hours as opposed to being at half power, sometimes a quarter power at night, then you could double the energy output of existing power plants. But in order to do that, you need to buffer the energy so that you can charge up the something like battery pack at night and then discharge into the grid during the day. So this is a massive unlock on total energy output of any given grid over the course of the year. And utility companies are beginning to realize this and are are buying in our mega packs at scale.

So at at this point, a gigawatt class battery is quite a common thing. So we have many orders in the hopper for gigawatt and beyond batteries. And we we expect the energy the the stationary energy storage business to scale ultimately to terawatts per year. So very, very good numbers. Now q one you know, first quarters of of a year are are usually pretty tricky because it's it's usually the worst quarter of the year because people don't wanna go buy a car in the middle of winter during a blizzard.

So and and and this so so we we picked q one as, like, a good quarter to do a a cut over to the new version of the Model y, and we changed production of the world's best selling cars with remembering that Model y is the best selling car of any kind on earth with a 1,100,000,000 unit per year output of a single model. And we did this changeover at the same time in factories all across the world. So congratulations to the Tesla team on an amazing job in pulling off what is a very difficult transition. So, yeah, it's it's really that was very impressive work. So yeah.

In conclusion, while there are many near term headwinds for us in the broader industry, the future for Tesla is brighter than ever. The value of the company is delivering sustainable abundance with our affordable AI powered robots. So this this oh, I'll spray that. I like this phrase, sustainable abundance for all. If you say, like, what's the ideal future that you can imagine?

That's what you'd want. You'd want abundance for all in a way that's sustainable. It's good for the environment. Basically, this is the happy future. So what's what's the happiest future you could imagine?

One which is that would be a future where there's sustainable abundance for all. Closest thing to heaven we can get on earth, basically. So thank you again to the Tesla team for all their efforts of this of this challenging time. I look forward to continuing to lead the team to great success in the future.

Great. Thank you very much, Elon. Before we move on, Devav has some opening remarks as well.

Thanks, Elon. As Ilan mentioned, in q one, we achieved something which has never been undertaken in the automotive industry of updating all our factories for the best selling car in the world all at the same time. And this is this people don't understand. This was not a small feat. We're not aware of anybody else being able to do the best selling car all at once within a quarter, and that too hitting all the diamonds which we had established at the beginning.

So when big kudos to the team for making this happen. Additionally, we also hit record gross profit for energy storage business in the quarter. Now getting back into the business, there's been a lot of speculation as to the reasons for decline of our vehicle deliveries in the first quarter. We had previously guided that we will be updating all factories, and this will lead to several weeks of lost production, which did happen as planned. The ripple effect of the change is not having enough new model y available in most markets for people to see and experience till the last few weeks of the quarter.

Additionally, the negative impact of vandalism and unwarranted hostility towards our brand and our people had an impact in certain markets. Despite this, we were able to sell out legacy Model y in US, China, and a few other markets within the world. And, again, you know, just so people understand, we were producing the legacy Model y till February. And we switched over, and we were able to still sell out within that period. So, again, big achievement by all the people at Tesla to make it happen.

We've been extremely we have a very extremely competitive vehicle lineup, which with most vehicles going through a recent update. And after that, if it wants an FSD, you have a personal chauffeur which can take you almost anywhere under supervision. And numerous stories shared by customers ranging from how it has included daily commute to providing mobility to customers with disabilities to giving older customers the ability to travel comfortably and independently. Not only is an FSD supervised safer than a human driver, but it is also improving the lives of individuals who experience it. And, again, this is something you have to experience, and anybody who has experienced just knows it.

And, you know, we've been doing a lot lately, try and get those stories out, at least on x, that people can see how other people have benefited from this. Now coming into some of the financial stuff, auto margins declined sequentially, primarily due to the reduction in the total number of deliveries. Lower fixed cost absorption due to factory change awards, and lower regulatory credit reviews offset slight while a slight increase in pricing due to the launch of new model one despite incentives which we had to sell legacy model y. Our energy storage business, like I said before, has achieved yet another milestone of create highest gross profit in the quarter. This was despite, you know, sequential decline in deployments.

The importance of this business, as I know mentioned, is pretty profound, especially in this environment because, you know, if in order for grids to work properly with the demands from AI and all this, you need some more stability. And this is by far the simplest and best solution, which we are aware of, which can help do this. And we've also developed certain unique solutions to help our customers to achieve this. Additionally, you know, on the Powerwall side, we've been selling the new Powerwall three, and, you know, it's been received with very good reception from customers and to the extent that we are currently supply constrained. On services and other margins, they were slightly down sequentially, primarily because of the pressure on our used car business and insurance business.

Note that we continued our journey to improve profitability in our services and collision business to better labor productivity. As previously discussed, our operating expenses continue to increase sequentially, primarily due to our AI related initiatives, including Optimus, and also cost of development for our vehicle programs, including CyberGap, Sema, and cheaper models. These expenses flow through R and D. We believe even in the current environment, it is the right strategy in making investments in these areas to position us for the long term. These increases were offset by decreases in SG and A from changes in our vertical effort program.

Other income reduced significantly on a sequential basis. The primary reason was bit well, Bitcoin mark to market loss in q one versus gain in q four, resulting in a 472,000,000 drop. The remainder of the change is because of FX remeasurement. With the adoption of the new mark to market standard for Bitcoin, we expect increased volatility in other other income in addition to the FX improvement. I know with tariffs is the hottest topic which people talk about, and it has various impacts to our business.

On as Ilo mentioned, you know, on the vehicle business, we've been on this journey of regionalization for years. Specifically, in The US, Model y has been rated the most American model made car on Cars.com made in America index three years in a row. This is in part is of the all the work which the team has been doing over the years. And to the extent that today, you know, if you look at our vehicle lineup in US, we're about approximately on a weighted average basis, 85% USMCA compliant. So like Elon said, this definitely gives us a bigger edge as compared to our other OEMs in terms of managing the tariffs, but we're not immune because when the two third section two thirty two auto tariffs become effective in May, which includes Canada and Mexico, and Canada and Mexico has been part of our regionalization strategy, it will have an impact on profitability.

And I know research modeling on this impact has been up about couple of thousand, give or which is pretty much in line with what we've been forecasting. The impact of tariffs on the energy business will be outsized since we source LFP battery cells from China. We're in the process of commissioning equipment for the local manufacturing of LFP battery cells in The US. However, the equipment which we have can only service a fraction of our total installed capacity at late later. We've also been working on securing additional supply chain from non China based suppliers, but it will take time.

Also note that, you know, mega fact, irrespective of all the impact on US from from our energy from tariffs on the energy business, we do have a manufacturing China, which just started operations in q one. And that are that that should take care of our business outside of US. There's also an important impact of tariffs on our capital investments. I know this is some gonna sound counterintuitive since in order to own onshore manufacturing or expand lines, we have to bring equipment from outside to use because there is not that much capacity in US. And the current trade environment, you know, such equipment being brought in is subject to

The expensive to bring it in from China right now.

And and the reality is that China has the basic one which has the most capacity, the wide. Our CapEx guidance inclusive of monitors even with the optimization we have tried to do, it is forecasted to be still in excess of 10,000,000,000 this year. We're still evaluating what more to do on this one. To summarize, we have near term challenges in our business due to tariffs and bad image. We think our strategy of providing the best product at a competitive price is going to be a winner, and this is the reason we still focus on bringing cheaper models to market soon.

The start of production is still planned for June. Additionally, the advancement in FSD related features, including pilot turbo taxi launch in Austin later this year, should help create a new era of demand. I would like to thank everyone at Tesla and our customers.

Fantastic. Thank you very much, Prabhup. Now we will move on to investor questions. We will start with questions from say.com. First question is, what are the highest grits highest risk items on the critical path to Robotaxi launch and scaling?

Yeah. We've got a stroke on. Sure. Well, just to we're just backed by the disam disambiguate the cyber cat from Robotaxi once again. So the when will the the Teslas because the the Teslas that will be fully autonomous in June in Austin are fully model wise.

So that is that's that's currently on track to to be able to do paid rides fully autonomously in Austin in June and and and then to be in any other cities in The US by the end of this year. It's it's very difficult. It's difficult to predict the exact ramp sort of week by week and month by month, except that will ramp up very quickly. So it's gonna be like some basically an s curve where it's very difficult to predict the intermediate slope of of the s curve, but you kinda know where the s curve is gonna end up, which is the vast majority of the Tesla fleet being autonomous. So that that's why I feel confident in predicting large scale autonomy around the middle of next year, but, you know, certainly the second half of next year.

Meaning, I I break that there will be millions of Teslas operating autonomously fully autonomously in the second half of next year. Yeah. But but it it just it just seem increasingly likely that there will be a localized parameter set of batch sort of you know, like, that that that If we especially for places that have, say, very snowy weather, like, say, you're in the Northeast or something, that that like, this, you can think of it's kinda like a human. Like, you you know, if you so you you could be a very good driver in California, but are you gonna be also a good driver in a blizzard in Manhattan?

gonna be as good. So there is actually some value in you can still drive, but you're probably even of an accident is higher. So there's it's it's increasingly obvious that there's some value to having a localized set of parameters for different, you know, different regions and and and localities. But but this is that put them in the nice tab category, not it's not the required category. Again, it's the car is just very much like a human.

It's it's digital neural nets and cameras, and humans operate with biological neural nets and eyes. And so the same strengths and weaknesses will be present for, you know, a digital neural net and and cameras versus a biological neural net in eyes. Ashok, if you'd like to elaborate on that?

Yeah. And speaking to the location specific models, we still have a generalized approach, and you can see that from, you know, deployment of FSD supervised in China where with this very minimal data that's, China specific, the models generalize quite well to completely different driving styles. That just, like, shows that the AI based solution that we have is the right one because, you know, if if you had gone down the previous rule based solutions or, like, more hardcore HD map based solutions, it would have taken, like, many, many years to get Shannon to work. Can see those in the videos that people post online themselves. So the generalized solution that we are pursuing is the right one that's gonna scale well.

And you can think of this, like, location specific parameters that you don't know either to ask, like, a mixture of experts. And if you're, sort of, like, familiar with the AI models in Grok and others, they all use this mixture of experts to sort of, like, specialize the parameters to specific tasks while still being general. This makes the come the model use a limited amount of compute to solve for the of layers of task that it has to solve. In terms of addressing the question that asked for, you know, what are the critical things that we need to get right? One thing I would like to note is validation.

Self driving is a long tail problem where there can be a lot of edge cases that only happen very, very rarely. Currently, we are driving around in Austin using our QA fleet, but then it's, like, super rad to get interventions that are critical for our word x c operation. And so you can, like, go many days without getting any single intervention. So you can't easily know whether you are improving or regressing in your capacity, and we need to build out sophisticated simulations including neural network based video generation. That's that's all happening in the background to make sure that we deliver a safe product and we we are able to measure our safety even though we can't just exceed by driving around the block or something like that.

I mean, very basic terms. If if that if if if we're seeing an accident every 10,000 miles, well well, then you have to drive 10,000 miles on average before you get an accident or an intervention. So it's like, okay. Now imagine I mean, we we must be really we must be very worried about by the sheer number of Teslas doing some of it's in in in Austin right now. They're like, what?

Yeah. There's just always a convoy of Teslas going going well well, just going all over to Austin in circles. But, yeah, as I I just can't emphasize this enough. In in order to get figure out these long tail things, it was one in 10,000. It says one in 20,000 miles or one in 30.

But I know you you know, the average person drives 10,000 miles in a year. That so now try to compress that test cycle into a matter of, you know, a few months. That means you need a lot of cars doing a lot of driving in order to compress that reward. Just do do in a in a matter of a month what would normally take someone a year.

would just also add that, you know, if you haven't looked at those videos coming out of China, people are

Yeah. They're putting it to real test. I mean, they're they're dark roads.

I think the Chinese consumer might be the most Americans consumer. And I me I actually customers in China are awesome. They they have a lot of fun with the cars. I saw one guy take a Tesla, like, on autonomous vehicle on on a narrow dirt road Yes. Across, like, a mountain.

And I'm like, still a very brave person. And I said, he's driving along on on the road with no barriers where if he makes a mistake, he's gonna plunge to his doom. But it worked.

And if if the question was on cyber cap itself,

big builds coming at the end of this quarter, within q two. And then, you know, in the coming months, start to large scale, you know, installation of all the equipment in Giga Texas with, you know, still on schedule for production next year.

Yeah. And I just wanna also clarify because I think people don't understand the thing that there's no new building being built. And where is cyber cap gonna be?

It every it's it's it's happening, people don't know it's happening upstairs and all along the lines while we're still building the model wise and cyber trucks every day.

Yeah. Yeah. It's it's worth noting that the, you know, the the Tesla Gigafactory in Austin is three times the size of the Pentagon.

Yeah. Including the Ground 0 Garden. So, you know, going to the Pentagon, like, this one that used to look big. But then you won't.

Great. Thank you very much. The next question is, when will FSD unsupervised be available for personal use on personally owned cars?

Before the end of this year. Not necessarily ever like, with I say, with with with within The US, like like, we we do wanna test like, we we're at Tesla, we're absolutely hardcore about safety. You know, we we we go to great lengths to make the safest car in the world and have the lowest accidents per mile. And so and and look if you're just life lost. So we wanna be very careful.

So it's a so we we and we want autonomy to be definitively safer than manual driving. So it it it's not enough that it just be as safe. It needs to be meaningfully safer than if it's the car is manually driven. So and we wanna confirm that there's not something it it yeah. We we just wanna be cautious with the rollout.

We don't wanna jump in at the deep end with an army. So but that said, I think we we we should people should we should be able to have have it work in in several several studies later this year for personal use. So you so, you know, the acid test being you you should be able can you go can you go to sleep in your car and wake up in your destination? And I'm confident that will be available in many cities in The US by the end of this year.

Great. Thank you very much. The next question is, is Tesla still on track for releasing more affordable models this year, or will you be focusing on simplified versions to enhance affordability similar to the rear wheel drive Cybertruck?

Yeah. We're still planning to release models this year. As with all launches, we're working through, like, the last minute issues that pop up. We're knocking them down one by one. At this point, I would say that ramp maybe might be a little slower than we had hoped initially, but there's nothing, you know, just kinda given that turmoil that exists in the industry right now.

But but there's nothing that's blocking us from starting production within the next, within the timeline laid out in in the opening remarks. And I will say it's important to emphasize that, as we've said all along, the full utilization of our factories is the primary goal for these new products. And so flexibility of what we can do within the form factor and and, you know, the the design of it is really limited to the what we can do on our existing lines rather than building new ones. But we've been targeting the low cost of ownership. Monthly payment is the biggest differentiator for our vehicles, and that's why we're focused on bringing these new models with the, you know, the lowest price, to the market, within the constraints I just highlighted.

Great. Thank you very much. The next question is, does Tesla see Robotaxi as a winner take most market? And as you approach the Austin launch, how do you expect to compare against Waymo's offering, especially regarding pricing, geofencing, and regulatory flexibility? Well, okay.

The issue with with Waymo's cars is it cost way more money. Broome shot. But that is the issue. You know, the the cars are very expensive, made in low volume. Teslas are, you know, I don't know, probably cost a quarter or 20% of what a a what a Waymo cost and and made in very high volume.

So, you know, ironically, we've like, we're we're the ones that made the bet that a pure AI solution with cameras. And and what do you have? The car actually will listen for sirens and that kind of thing. It's the right move. And Waymo decided that that that expensive sensor suite was the way to go even though Google's very good at AI.

So I'm wondering. And and it is worth noting that Tesla has built an incredible AI, you know, AI software team and AI hardware chip design team from scratch. Nothing didn't require anyone. They just built it. So, yeah, it's really I mean, I don't see anyone being able to compete with Tesla at present.

And that that I'm sure that'll change eventually. But at least as far as I'm aware, Tesla will have, I don't know, 99% market share or something ridiculous. That 90 something percent. At least I don't know. At least some of them might change, but, you know, if you if if we have millions of cars deployed next year and unless others have millions of cars deployed.

But, like, it they'll we'll we'll have unless we're blocked by regulatory situations, it won't be long. I mean, in a few years, we want 10,000,000 autonomous cars on the roads, then, you know, and and counting.

And the the other thing which people forget is, like, we're not just developing the software solution. We are also manufacturing the cars. Yeah. And, like, you know what? Like, Vimu has, they're taking cars, then trying to put

Tesla (TSLA) Q1 2025 Earnings Call Transcript

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