Large-scale adoption of EVs is underway,
- Elon’s Opening Address
- Large-scale adoption of EVs is underway, and competing EVs are struggling. EV sales may be difficult in the short term, but they should be fine in the long run.
- Confident that EVs are best for customers, the world is moving towards a full EV future. Not just cars, but boats and planes.
- Energy storage is the highest ever.
- A lot of investment in AI-related future projects.
- A cheaper model will be released next year, and the biggest difference is self-driving.
- Large scale for autonomous vehicles and robots.
- There was a lot of progress in FSD (Full Self-Driving) in Q2, and 12.5 customers will experience the performance improvement of supervised FSD. 12.5 has 5x more parameters than 12.4, integrating highway and urban driving.
- Most people don’t know the excellence of the system. You’ll keep using it when you try it.
- Will teach how to use FSD when delivering a new car or picking it up for service.
- Postponed Robotaxi product announcement for a few months, setting it anew for October 10. To add significant changes.
- Almost completed the south extension of the Texas Giga Factory. Will have the largest training cluster so far.
- Optimus Robots Working At Factory, Limited Production Set To Begin In Early 2025.
- The energy business is growing fastest, with demand exceeding supply.
- Emphasis on the importance of autonomous vehicles and Optimus.
- CFO Announcement
- An attractive financial offering to offset high interest rates in Q2.
- Record Quarterly Net Automotive Margin Maintains.
- Working on localizing the supply chain.
- Vehicle costs are reduced sequentially.
- Production of Model 3 and Cybertruck in Q3 will be affected by tariffs.
- Achieving record revenue and profits in the energy business.
- One-time cost of $622M due to reorganization.
- Annual capital expenditure is expected to be $10B.
- Positive Free Cash Flow $1.3B, With $30B In Cash.
- Investor Questions
- Roadster: Most engineering completed, scheduled for production in 2025.
- Robotaxi: Product Announcement Date Postponed to Oct. 10.
- Estimated timing of first robo taxi ride: between the end of 2024 and the end of 2025, following the introduction of unsupervised autonomous driving.
- Cybertruck: Whether to expand to SUVs or vans will be announced at the event.
- 4680 Battery Status: 51% More Cells Produced During Q2, Set To Achieve Cost Equivalence By End Of The Year.
- DOJO Update: NVIDIA Hardware Demand Is Very High, Will Work More On DOJO To Stay Competitive.
- Accessories for Optimus robots: a common humanoid robot, compatible with human work.
- Opinion on advertising: Already advertising, product quality and price are important.
- Timeline of Giga Mexico and first vehicle: Mexico project to be decided after election results.
- OEM and FSD License Negotiations: Several OEMs have expressed interest, and there will be more over time.
- Update on XAI and Grok integration: learning a lot from XAI, and helping to develop FSD.
- Analyst Questions
- Concern about AI commercialization: Explanation of how resources are allocated between Tesla and xAI.
- New Vehicle Launch: Aiming to Cut Costs, Not Revealing Details.
- Energy and Optimus’ Revenue Contribution: Optimus’ Long-Term Value Will Exceed Tesla’s All Others.
- How the FSD license works: it could take years as OEMs need to integrate Tesla’s AI computers and cameras.
- Shanghai factory’s strategy: coordinating strategies related to tariffs and battery imports.
- Robotaxi Strategy: Preparing for regulatory approval, and working to get approval outside of the United States as well.
- Robotaxi Regulatory Issues: Pointing out that GM’s technology is insufficient.
- Importance of FSD Experience: Users should experience it firsthand.
- Robotaxi Distribution Plan: Plans to achieve scale immediately by calling vehicles through the Tesla network.
- Energy Storage Pricing Strategy: Staying Competitive and a unique offer from the software stack.
- Looking for a supplier of the new 4680 process: no problem with a strong IP position.
