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<ul> 
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 	<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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<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.

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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.

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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

Q3 2025

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 second quarter twenty twenty five q and a webcast. My name is Travis Axelrod, head of investor relations, and I'm joined today by Elon Musk, Bev Abtaneja and a number of other executives. Our Q2 results were announced at about three p. M. Central Time in the update deck to be published at 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 to q and a, Elon has some opening remarks. Elon?

So we've had a very exciting quarter. The we're able to successfully launch robo taxi, so providing our first drives with no one in privacy, both paying customers in Austin. And as some may have noted, we've already expanded our service area in Austin. It's bigger and longer, and and it's and it's gonna get even bigger and longer. We were expecting to really greatly increase the Austin service area to well in excess of what competitors are doing.

And that's hopefully in a week or so, two weeks?

Couple of weeks or so. And and and and then we're we're we're getting the regulatory permission to launch in the Bay Area, Nevada, Arizona, and a number of and Florida and a number of other places. So as as we get the approvals and we prove out safety, then we'll be launching autonomous ride hailing in in most of the country. And I think we'll probably have autonomous ride hailing in probably half half the population of The US by the end of the year. That's that's at least our goal subject to regulatory approvals.

I I I think we'll technically be able to do it. So assuming we have regulatory approvals, it's probably addressing half the population of The US by the end of the year. But we we we are being very cautious. We don't wanna take any chances. And so we're good.

We're gonna, yeah, go go cautiously. But but it's it's the service areas and the number of vehicles in in operation will increase at at a hyperexponential rate. So, you know, some other notable things. Model y in June became the best selling car in Turkey, Netherlands, Switzerland, and Austria. It is, I believe, the best selling car of any kind in the world still.

And autonomy is a is a big factor there. So even without even even without supervised even even with just supervised self self driving, it's it's a huge selling point. And it's worth noting that we do not actually yet have approval for supervised FSD in in Europe. So our sales in Europe, we think, will improve significantly once we are able to give customers the same experience that they have in The US. This is my this is, I think, a very important point to convey.

And we've been working with main country regulator, which is The Netherlands. And I think we're close to getting approval with Netherlands, then it's gonna go to the EU. It's quite a, you know, In fact, had no idea that something like EU could exist. Beyond challenges with bureaucracy, but it will we will get the approvals. And I I think we'll get, you know, some people in Europe will have experience similar to how The US in most of Europe, you know, this year, hopefully, at least partly in this quarter.

And then we also have some regular regulatory challenges in China, which we're hoping to unblock shortly where we because we we also cannot provide to advise FST in China currently. We're able to unblock that suit, and that's also those that's another major. It's really is the single biggest demand drive. And then within The US, as as we are get confident about safety in in different geographic areas, the we will loosen up on how much somebody has to be laser focused have their eyes laser focused on the road. You know?

Because that's that's been a common complaint. In fact, it it does create odd odd safety issue where people will sometimes disengage Autopilot, then then do something, change the radio or maybe look at the phone, drive with their knee, and then reengage Autopilot, which obviously is not is less safe than simply keeping Autopilot on. So, anyway, we're get that that that experience will will improve in in the next several weeks. The the because of our focus on Boston with that one in the privacy, the production release of autopilot is actually several months behind what people experienced on a robo text in Austin. So now we have the robo text that Austin launched.

We'll be provide adding back those elements so that there will be a step change improvement in the the autopilot experience for people outside of Austin. This this is really, as you can tell, this is very much sort of autonomy is is the story. Like, we need to we need the physical product without which you cannot have autonomy. But once you have a physical product, need the the autonomy is what amplifies the value to stratospheric levels. We also launched the Tesla Dyna, which has been a huge hit.

It actually got worldwide attention, which is unusual for a Dyna. Diners don't typically get, you know, headline news around Earth. But this is a pretty special diner. And if you're in the LA area, it's worth visiting. It's sort of a shining beacon of hope in in an otherwise sort of bleak urban landscape, frankly.

So really quite quite a lovely experience. Great job by the team there. On the full self driving front, continue to worry about that. We have we're continuing to make significant improvements just with the software. So the we're we're expecting to increase the parameter count.

Actually, at this point, I think we think we can probably 10 x the almost 10 x the parameter. Yeah. Roughly. Roughly 10 x the parameter count. So this is this is actually a very tricky thing to do because you if you as you increase the parameter count, you get you get choked on memory bandwidth.

But we currently think we can 10 x the parameter account from what people are currently experiencing. That's that's not not not just a four x, actually, x increased in in parameter account. And yeah. So so there's a lot of improvement on the existing hardware to to to happen. Energy is growing really well despite headwinds from tariffs and various supply chain challenges.

The the mega pack is expanding capacity quickly, and and we have upgrades to the mega pack that will make it even better. And we had record power deployment gain in q two. So I I I think battery batteries are gonna just gonna be a massive thing The the scale of batteries battery demand is, I think, not that many people appreciate just how gigantic the scale of battery demand is. We the way to think about it is that The US sustained power output for The US grid is around one terawatt, but average usage is less than half a terawatt. If you add batteries to the mix, you can run the power plants twenty four seven at full capacity, thus doubling more than doubling the energy output per year of The United States just with batteries.

But that's a good big deal. It's a really big deal. Optimus so we're revolving the opto Optimus design and really getting Optimus to the point where it is a phenomenal design. So an Optimus version two right now, sort of two and a half. Optimus three is is an exquisite design in my opinion and will be an as I've said many times before, predicted it will be the biggest product ever.

It's a very hard problem to solve. You have to design every part of it from Physics First Principles. There's nothing that's off the shelf that actually works. So you can design every motor gearbox, power electronics, control electronics, sensors, the the mechanical elements. We also got to train optimist to use its sensors with a neural net, but we'll be applying the same techniques that we applied for a car, which is essentially a four wheeled robot.

And OPTIMIS is a robot with arms and legs. So the the the same principles that apply to optimizing AI inference of the car applied to Optimus because they're both really robots in different forms. And and Tesla, it it is important to note that Tesla is by far the best in the world at real world AI. Like like, a clear proof point with for that would be if you compare it to Tesla to Waymo. Waymo's got you know, the car is best doing with god knows how many sensors.

And yet isn't Google good at AI? Yes. But they're not good at real world AI thus far. They have Tesla is actually much better than Google by far than any much better than anyone at real world AI. And and I and by far, Tesla has the the best inference efficiency.

Like, I think a key favorite for AI is what is the intelligence per gigabyte? And people talk about parameters, blah blah blah. But but I think we'll talk about stop talking about parameters and talk about gigabytes because with the parameters, you can have four bit parameters, eight bit parameters, 16 bit parameters. But the actual constraints in the hardware are how many gigabytes of RAM and how many gigabytes per second can you transfer from RAM. Therefore, it is not a parameter constraint.

There's it is a there's a byte constraint. And Tesla has the highest intelligence density of any AI by far. And I have a lot of insight into this with with xAI. XAI is you know, Grok is the smartest AI overall, but it's a you know, Grok four is a giant beast. They're sort of at the terabyte level.

And so kind of a important to note, Tesla has the best intelligence density. Intelligence density will be a very big deal in the future. It is now. So with with Optimus three, which is really the right design, it's like it doesn't have at this point, there's no no significant flaws with the Optimus three design. But it it it would we are gonna retool a bunch of things.

So it's gonna probably be prototypes of Optimus three end of this year and then scale production next year. And I'll try to scale Optimus production as fast as it's humanly possible to to do so and try to get to a million units a year as quickly as possible. You think we can get there in less than five years? That's my sort of, I guess. That that's a reasonable aspiration.

It's a million years, a year, five years. It seems like an achievable target. In conclusion, so far, 2025 has been a very exciting year. A lot of major milestones. We've made clear pro demonstrable progress in autonomy that a lot of said we would not achieve.

It is worth noting that we have done what we said we're gonna do. I mean, we're always on time, but we get it done. And on the ACRS, I was sitting there with egg on their face. So great great great progress by the Tesla team. Yeah.

I I I do think if Tesla continues to execute well with big autonomy and and humanoid robot autonomy, it it it will be the most valuable company in the world. So a lot of execution between here and there. It doesn't just happen. But provided we execute very well, I think Tesla has a shot at being the most valuable company in the world. Alright.

Obviously, I'm extremely optimistic about future of the company. Best way to predict the future is to make it happen, and we're we're making it happen here with Tesla team. So I'd just like to say thanks to all of our supporters, and I think we're good to tell you an incredibly exciting future.

Great. Thank you very much, Elon. And Benloff has prepared remarks as well.

Thanks, Travis. As Elon mentioned, q two was an interesting quarter in a few respects. We started ramping up the production of the new Model y at all our factories. We rolled out our robotaxis service in Austin and delivered a car completely autonomously from directly from the factory to the customer's home. It is a seminal point get to this thing.

I mean, it took a lot of effort, and I really wanna thank everybody at Tesla to make this happen. It wasn't an easy thing to do, but we did it. It took time, but we've just begun the next phase for the company. The one big bill has a lot of changes that would affect our business in the near term. The first among those changes is the repeal of the IRA EV credit of 7,500 by the end of this quarter.

Given the abrupt change, we have limited supply of vehicles in The US this quarter as we have already with the lead times to auto parts to build cars. We've rolled out all our planned incentives already, and we'll start bearing them back as we start to sell. If you are in The US and looking to buy a car, place your order now as we may not be able to guarantee delivery orders placed in the later part of August and beyond. But we'll also make changes to certain emission standards by reducing the amount of penalty to zero. This, in turn, will have an impact on the new sales of regulatory credits to other OEMs and, in turn, will lead to lower revenues.

While we now plan our business around such sales, it will nonetheless impact our total revenues going forward. On the automotive product portfolio, the entire lineup is updated. Globally, we are seeing an increase in the number of test drives. We started the production of the lower cost model as planned in the first half of twenty five. However, given our focus on building and delivering as many vehicles as possible in The US before the EV credit expires and the additional complexity of ramping a new product, the ramp will happen next quarter slower than initially expected.

One thing which is grossly under appreciated and need on time to moderate is that all our vehicles in the lineup are capable of a ton. This is by far the biggest differentiator between us and the competition. Our vehicles stop safety standard as is, but with FSD, they are and will continue to set a new standard for safety within vehicular transportation. We published our vehicle safety report earlier today, and you can see a car on FSD is 10x safer than the car not on FSD. We've started seeing an uptick in FSD adoption in North America in recent months, which is a very promising trend.

And just to give you perspective, you know, since the launch of since we've been moved to version 12 of FSD, we've seen the adoption rates really increase. We've started seeing the on the automotive revenue front, despite reduction in regulatory credit revenue and the auto the total automotive revenue increased by 19% sequentially even though total deliveries only improved 14%. This was primarily due to an improved a s ASPs because of the new model y. This helped in improving margin sequentially as well along with improved mix and higher cost fixed cost absorption despite an increase in cost from tariffs. We started seeing the impact of tariffs in our p and l.

Sequentially, the cost of tariffs increased around 300,000,000 with approximately two thirds of that impact in automotive and rest in energy. However, given the latency in manufacturing and sales, the full impacts will come through in the following quarters, and so cost will increase in the near term. While we are doing our best to manage these impacts, we are in an unpredictable environment on the tariff front. The margins for the energy generation and solar businesses improved sequentially while deployment reduced primarily due to the ramp of power deployments at higher margins. We were able to achieve our highest gross profit for the business yet.

Note that the overall deployments will continue to vary quarter to quarter. Think, you know, covered this that, you know, industrial storage will make a difference in this drive towards AI and data center growth. The energy requirements are increasing at a rapid scale as application as AI applications are very energy hungry. The quickest path to scale up energy is deploying storage. This is something that our customers have started realizing, and despite this business having the largest impacts from tariffs, we're seeing customers willing to accept some of the tariff impacts.

The big bill has certain adverse impacts even for the energy business, most notably on the residential storage business due to the early expiration of currency one by the end of this year. The challenges of the storage business, therefore, remain both from the build and from tariffs, and we're doing our best to try and manage through this. But it will we will see shifts in demand and profitability. The margins for our service and other businesses improves sequentially, primarily due to higher profits from supercharging and improvement in insurance and service center profitability. Operating expenses also grew sequentially as we continued our investment in AI projects, including additional expenses related to employee related costs, including higher stock based compensation and depreciation for AI compute.

Our operating expenses, our r and d related spend, will continue to grow. We believe even in the current environment, it is the right strategy to keep making investments in these areas to position us for the long term. Other income grew sequentially primarily from the mark to market adjustment on Bitcoin Holdings, which was 284,000,000 gain in q two while we got a 125,000,000 loss in q one. Just want to remind people that this would keep creating volatility based on the Bitcoin price. While other while operating cash flows increased sequentially, so did our CapEx, resulting in 146,000,000 of free cash flow.

We continue to make investments in various aspects of manufacturing, like cyber cap, semi mines, and other manufacturing spend, and the expansion of our AI initiatives. Our latest expect expectation for the year in terms of CapEx is in excess of 9,000,000,000. To summarize, we have near term challenges in our business due to the negative impacts of the bill and tariffs. However, the investments that we have made for AI, robotics, and our lead in energy sets us up for a bright future. I would like to thank the whole Tesla team, our customers, our investors, and supporters for their continued belief in us.

Great. Thanks very much, Vethal. So now we're gonna move on to state.com questions. The first question is, can you give us some insight how robo taxis have been performing so far and what rate you expect to expand in terms of vehicles, geofence, cities, and supervisors?

The robo taxis has been doing great so far in Austin. Customers really love the experience. It was, like, super smooth, very safe, and, like, just a great experience overall. And we already did the first day of expansion in Austin, and we'll continue to expand in Austin to probably more than 10 x our current operating region. We're also testing in a lot of other cities as Elon mentioned.

The next thing to expand would be in the San Francisco Bay Area. We are working with the government to get approval here, and in the meanwhile, launch a service with the person in the driver's seat just to expedite, and while we wait for regulatory approval. We're also testing a lot of other cities in The US, including Florida, Nevada, etcetera.

Great. Thank you very much, Shuk. The next question is, what are the key technical and regulatory hurdles still remaining for unsupervised FSD to be available for personal use? Can you provide a timeline?

Forward. First of me getting there, I think it's it it'll be available for its personalized personal use by the end of this year in certain geographies. We're just being very careful about it. So

This is not something which we all do rush.

We wanna make sure that everything is safe before we make it available broadly.

Yeah. We're just being extremely primary.

But I I'd be I'm I'm confident that by the end of this year within a number of cities in The US, we will will it'll be available to end users. Like yeah.

Yeah. And for what it's supposed to be the same, AA hardware, in the Austin robotaxi vehicles has some customer vehicles, and we did deliver a car autonomously from the factory to a customer this quarter.

And every Tesla manufacturer in The US and, in Europe, autonomously drives itself from the end of line to the, loading docks. And it so it's just a software upgrade away.

I I think we'll be in we'll end up delivering cars in the Great Warson area and the Bay Area by default from the factory by the end of this year. Like, a car will deliver itself to your to where you are unless you say you don't want that.

Great. Thank you, guys. The next question is, what specific factory tasks is Optimus currently performing, and what is the expected timeline for scaling production to enable external sales? How does Tesla envision Optimus contributing to revenue in the next two to three years?

Yeah. So the Optimus Optimus three design, as I mentioned earlier, is, I think, finally the right design. There'll be further optimizations, but there are no, I think, no fundamental changes to that are needed for the optimist three design. It has all the degrees of freedom that we really want or need. So it's you know, I have prototypes of that in, I don't know, three or three months, and it's sort totally in production.

We'll certainly start production on that in the beginning of next year. The production ramp is simple. It's always a good predict Yes. Cover of your production ramp when something has got an entire when everything is new because the rate of production will move as fast as the least lucky and least competent elements of the entire supply chain as well as in in internal processes. So the more new stuff that is in in a product, the slower the the ramp could be because of unexpected supply chain interruptions or mistakes made internally.

It's much easier to predict sort of the the the end of the of the s curve or or late in the s curve than the beginning of the s curve. And the beginning of the s curve of of the production ramp is in any case not really material for revenue purposes. The the beginning of the s curve, that you're usually not usually yours, negative gross margin, and you're debugging a lot of issues. So that that's why, like, it's it's I I feel like fairly confident in predicting things or at least medium confident in predicting where we are at five years, but I it's hard to predict where we are in a year or two years. So that's why I think five years I think we could be at the let me put this right.

I'd be surprised if at the end of five years, you know, sixty months from now, if we are not roughly making a 100,000 Optimus robots in month in sixty months, I would be shocked.

Alright. Thank you very much. Next question is, can you provide an update on the development and production timeline for TESS' more affordable models? How will these models balance cost reduction and profitability, and what impact do you expect on demand in the current economic climate?

Well, I I think Vibod did a good job of answering this question in his opening remarks. As we said, we started production in June, and we're ramping, you know, quality builds and things throughout the quarter. And given that that we started in North America and that, you know, our goal is to maximize production with a higher rate. So if ending q three, we're gonna keep pushing hard on our current models to avoid complexity. Unfortunately, that rolls away.

We'll be running within more formal models available for everyone in q four. And, you know, the goal of those products was not to negatively impact revenue or or gross margin, but just to make a car that everyone loves and wants at a more affordable price.

Great. Thank you, Lars. The next question is, can you talk about the benefits of Tesla investing in xAI?

This is not the forum to discuss this topic. I mean, if if if there is something which we need to discuss, we'll discuss that separately.

I I think, obviously, you know, we're a publicly traded company. Shareholders are welcome to put forward any shareholder proposals that they'd like. I recently encouraged that. And and then have shareholders vote, and we'll act in accordance with the shareholder wishes.

Thank you very much. The next question is, can you tell us a little bit more about what goes on in the Tesla design studio?

We we kinda generally say that what happens in the studio stays in the studio and that, you know, earnings calls are not the place to disclose new product stuff. But we're, you know, we're working to make sure that we have an exciting future for for our Tesla and our in in the product lineup.

Yeah. There's a lot of exciting things happening in the design studio. It's it's not like static. And, really, what's gonna happen over the next several years is a fundamental transformation of the company from a preautonomy world to a postautonomy. And I'm working on a new master plan to articulate that as a team.

And, you know, there there there will there will be there are some teething pains as you as you transition from pre preautonomy to a postautonomy world. But I think the the future vision for Tesla is incredibly exciting and will profoundly change the world in a good way. This may sound like sort of pineapple or whatever, but I I think if well, let's just say if we execute on that plan effectively, which is you have to actually do that, Tesla will be the most valuable company in the world by far.

Great. Thank you. The next question is actually duplicate on unsupervised SSD for customer vehicles. We'll skip that. After that is, are there any news for hardware three users getting retrofits or upgrades?

Will they get hardware four or some future version of hardware five?

I mean, what we want to do is we wanna get unsupervised done on hardware four first. Once it's done, then we will go back and look at what we need to do with the hardware three cars. I mean, like I said, the focus is first to get unsupervised out, and then we'll go back and see what more work we need to do.

Great. Next quest question is, can you give an update on Dojo, and could xAI be a customer for Dojo?

Dojo two we expect to have Dojo two operating in scale sometime next year with scale being somewhere around a 100 k h 100 equivalents. And and then AI five, which is really it's spectacular too. I I don't use those words lightly. Spectacular too. The AI five will be hope hopefully be in volume production around the end of next year, but that has a lot of potential.

I think, you know, thinking about Dojo three and the AI six in first chip, It seems like intuitively, we wanna try to find convergence there where it's basically the same chip that is used where we use, say, two of them in a car or an Optimus and and maybe a larger number on a on a board, a kind of five twelve on a board or something like that. If you want high bandwidth communication between the chips at a forced survey doing doing a burn survey. That sort of seems like intuitively the sensible way to go.

Great. The next set of questions have all actually been covered. So we'll we'll end with, how will the BBB elimination of tax credits for solar projects affect your sales pipeline for Megapack?

Yeah. Our our sales pipeline is is quite diversified across customers and market segments, so we aren't heavily weighted in Megapack projects that are paired with solar. And as we talked about in the opening remarks, we're seeing storage quickly being recognized for its ability to unlock grid efficiency and how quickly it can be deployed to help the grid. Additionally, although the recent bill was not favorable toward solar, we we believe solar projects will still get built because the energy is necessary. The projects are well developed, and they're ready for execution, and there's really no alternatives in the near term given gas turbine lead times and pricing.

We also could continue to see growth in the data center segment and in stand alone storage projects providing capacity to the grid in several markets across The US. Overall, we're forecasting a very strong second half of the year as we increase deployments. And lastly, we we continue to invest heavily in US manufacturing to mitigate policy and tariff impacts, expecting our first LFP cell manufacturing facility to be online by the end of the year and launching our third mega factory near Houston in 2026.

Great. Thank you, Mike. We will now be moving to analyst questions. The first question comes from Emmanuel Rosner at Wolfe Research. Emmanuel, please feel free to unmute yourself whenever you're ready.

Great. Thank you so much. Can you hear me?

So, Elon, are you able to share any KPIs with us in terms of the robotaxi business? How many vehicles are you operating, miles driven autonomously or the number of safety critical intervention? Just curious how the rollout is generally is going and any sort of like targets that you could share more broadly.

Yeah. Have, you know, more than 7,000 miles operating in Austin area. It's you know, just because service is new, we have handful of vehicles, right now, but then we are trying to expand the service, in terms of both the area and also the number of vehicles both in Austin and other locations. So far, you know, the there's, like, no notable safety critical incidents there. You know, sometimes we have our own, restrictions as to, for example, be resting on our speed limit to 40 miles per hour course.

And if the vehicle wants to go on, like, higher speed course, we can stop the vehicle, but those are lot of convenience opposed to, safety critical nature. So for the service, that will be really good received, and we continue to, expand on it.

Great. And term from an economics point of view, longer term, you've previously talked about working to drive down the cost per mile on the robotaxis, maybe towards $0.30 or $0.40 per mile over time. Now that your service is live, how should we think about the main milestones to getting there?

Yeah. Well, the the the cyber cab is which is really optimized for autonomy. That that I think has got probably sub 30¢ per mile potential over time, maybe 25. You know, it's it's really you you like, if you design a car from scratch to to be a cost optimized robotic taxi like CyberCap. You know, you know, you you like, for example, we're we're not trying to make it, you know, corner like a like, incredibly well like a model three would, you know, or model s or even model y. Like, it's got model most the this you know, model all all of our all all of our cars that are driven by people are super fun to drive. They've got incredible acceleration, you know, incredible cornering capability. But I don't we're we're we're confident that very few people in a cyber cap want to be hurdling around.

So, you know, so we were we we've reduced the the top end speed, which means we can use more efficient tires. We don't need as much acceleration. We don't need as much, you know, big big breaks to sort of we won't want stopping distance, but we we're we're not expecting it to be heavily used. It's it's it's a gentle ride. Essentially, you you design it for a gentle ride and and then you you have a much more optimized optimized design point.

Tesla (TSLA) Q2 2025 Earnings Call Transcript

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