WEBVTT 1 00:00:00.040 --> 00:00:02.439 We're currently making it on the order of thirty five 2 00:00:02.480 --> 00:00:05.919 thousand autonomous vehicles a week, competed to say way most 3 00:00:06.000 --> 00:00:07.879 entire fleet if they have less than a thousand corners 4 00:00:08.359 --> 00:00:10.759 thirty five k a week. The fsty is actually getting 5 00:00:11.759 --> 00:00:14.000 so good that it takes us a while to actually 6 00:00:14.080 --> 00:00:18.039 find mistakes. I feel confidence saying that we have most 7 00:00:18.079 --> 00:00:22.079 advanced human right robot by longshot, and we're moreover the 8 00:00:22.120 --> 00:00:24.559 only company that really has all of the ingredients necessary 9 00:00:24.600 --> 00:00:27.800 to scale human right robots. We have a kind of 10 00:00:27.839 --> 00:00:31.679 ridiculous demand for the semi roaster is not diet, not 11 00:00:31.719 --> 00:00:32.520 just the icing on the cake. 12 00:00:32.520 --> 00:00:35.520 It's the cherry on the icing on the cake. We 13 00:00:35.640 --> 00:00:36.479 think that we'll be. 14 00:00:36.479 --> 00:00:40.119 Able to have drival as Tesla's during paid riots next year. 15 00:00:41.159 --> 00:00:42.759 One of the clock companies a world class that a 16 00:00:43.039 --> 00:00:47.880 team like Tesla does zero. If you look at eed 17 00:00:48.039 --> 00:00:53.000 companies worldwide, it's the best my knowledge. No eb company 18 00:00:53.079 --> 00:00:55.840 is even profitable, and it's the best my knowledge. There's 19 00:00:55.880 --> 00:00:59.359 no easy division of any company of any existing order 20 00:00:59.439 --> 00:01:03.359 company that profitable. So it is notable that Tela is 21 00:01:03.439 --> 00:01:06.879 profitable despite very challenging one about the environment. And this 22 00:01:07.120 --> 00:01:10.079 quarter actually is a rec world Q three for US. 23 00:01:10.200 --> 00:01:14.000 So we produced to our seven million vehicle actually just yesterday, 24 00:01:14.200 --> 00:01:17.200 So congratulations to the teams that made it happen in Tesla. 25 00:01:17.439 --> 00:01:20.400 That's the straggling, the events, amount of work to make 26 00:01:20.439 --> 00:01:21.439 seven million cars. 27 00:01:21.760 --> 00:01:22.719 So to see. 28 00:01:23.319 --> 00:01:27.519 We also have enterry storage business is growing like wildfire 29 00:01:28.200 --> 00:01:28.920 with strong demand. 30 00:01:29.000 --> 00:01:29.680 Will both make it. 31 00:01:29.719 --> 00:01:32.799 Back and powerbol and as people know, on October tenth, 32 00:01:33.000 --> 00:01:36.040 we laid out a vision for an autonomous and looked 33 00:01:36.040 --> 00:01:40.000 for future that I think is very compelling something you 34 00:01:40.079 --> 00:01:42.000 know that the Tesla team did a phenomenal job there 35 00:01:42.040 --> 00:01:45.079 with actually giving people an opportunity to experience the future 36 00:01:45.640 --> 00:01:49.120 where you have humanoid robots walking among the crowd, not 37 00:01:49.439 --> 00:01:52.680 can video presentation or anything, but picially walking among the crowd, 38 00:01:53.319 --> 00:01:56.480 so many drinks and whatnot. And we had fifty autonomous vehicles. 39 00:01:56.519 --> 00:01:58.680 There were no twenty cyber caps, but there were an 40 00:01:58.719 --> 00:02:02.920 additional thirty model wise operating fully autonomously the entire night 41 00:02:03.319 --> 00:02:06.439 and carrying thousands who was no incident the entire night 42 00:02:06.519 --> 00:02:08.800 for those who went there that it were empsizing that 43 00:02:08.879 --> 00:02:13.840 the Cybercap had no steering wheel or break or accelerated pedals. 44 00:02:14.240 --> 00:02:17.479 I mean there was no way for anyone to intervene 45 00:02:17.520 --> 00:02:19.599 manually even if they wanted to, and the whole night 46 00:02:19.639 --> 00:02:22.360 went very smoothly. So regarding the vehicle business, we are 47 00:02:22.400 --> 00:02:26.000 still contracted to deliver affordable models starting in the first 48 00:02:26.000 --> 00:02:27.280 half of twenty twenty five. 49 00:02:28.000 --> 00:02:30.840 But this is I think probably people are wanting to 50 00:02:30.840 --> 00:02:33.639 who what should they assume for vehicle sales growth next year, 51 00:02:34.039 --> 00:02:37.199 And at the risk of to take a bit of 52 00:02:37.280 --> 00:02:40.120 risk here, I do want to give some rough estimate, 53 00:02:40.159 --> 00:02:43.599 which is I think twenty to thirty percent vehicle growth 54 00:02:43.840 --> 00:02:47.719 next year, notwithstanding negative external events like if there's some 55 00:02:47.759 --> 00:02:50.960 force masure events like some big war breaks out or 56 00:02:52.000 --> 00:02:54.599 interest rates to go sky high or something like that, 57 00:02:54.680 --> 00:02:58.719 then we can't overcome massive force masure events. But I 58 00:02:58.759 --> 00:03:03.800 think with other cost hicles with the advent of autonomy, 59 00:03:04.080 --> 00:03:06.280 something like a twenty to thirty percent growth next year 60 00:03:06.520 --> 00:03:08.000 is my best guess. 61 00:03:08.199 --> 00:03:12.080 And then Cybercamp reaching buying production in twenty six. Do 62 00:03:12.120 --> 00:03:14.599 you feel confident of cyber reaching buying production twenty six 63 00:03:14.800 --> 00:03:17.719 A starting production reaching buling production in twenty six, that 64 00:03:17.759 --> 00:03:20.960 should be substantial. Both we're aiming for at least two 65 00:03:20.960 --> 00:03:25.120 million units a year of Cybercamp. That will be in 66 00:03:25.120 --> 00:03:26.960 more than one factory, but I think it's at least 67 00:03:26.960 --> 00:03:30.680 two million units a year, maybe four million ultimately. So yeah, 68 00:03:30.719 --> 00:03:32.680 these are just my best guesses. But if you ask 69 00:03:32.719 --> 00:03:34.840 me my best guesses, those are my best guesses. The 70 00:03:34.879 --> 00:03:37.199 twenty six to sell forty six to eighty lines, the 71 00:03:37.240 --> 00:03:39.479 team is actually doing great work there. For forty six 72 00:03:39.479 --> 00:03:43.759 to eighty is rapidly approaching the point where it is 73 00:03:43.960 --> 00:03:47.360 the most competitive sell. I think that the fully landed 74 00:03:47.960 --> 00:03:51.599 the cost of a battery pack fully landed in the 75 00:03:51.680 --> 00:03:57.639 US net of incentives and duties, the forty six eighty 76 00:03:57.680 --> 00:04:00.919 is tracking to be the most competitive lower costic than 77 00:04:00.960 --> 00:04:04.919 what are fully considered than any other alternative is We're 78 00:04:04.960 --> 00:04:07.560 not quite there yet, but we're close to being there, 79 00:04:07.719 --> 00:04:11.400 which I think is extremely exciting, and we've got several 80 00:04:11.719 --> 00:04:14.759 a lot of ideas to go well beyond that. So 81 00:04:15.240 --> 00:04:19.000 if I think this, if we execute well, the forty 82 00:04:19.040 --> 00:04:22.759 six eight will have the the internally produced cell will 83 00:04:22.759 --> 00:04:26.600 be the most cost competitive sell in to the North America, 84 00:04:26.680 --> 00:04:28.519 the testament to a tremendous amount of hard work there 85 00:04:28.800 --> 00:04:31.519 by the team. So that's say, we will continue to 86 00:04:31.560 --> 00:04:33.879 buy a lot of seals from our competitors, so ours 87 00:04:33.920 --> 00:04:39.120 not to make to provide to make cells just eternally, 88 00:04:39.480 --> 00:04:41.600 so I don't want to set off any law mails here. 89 00:04:41.720 --> 00:04:48.040 We're alsously increasing substantially our big output and our stationary 90 00:04:48.199 --> 00:04:51.800 storage output, so we need a lot of cells, and 91 00:04:51.879 --> 00:04:54.040 most of them will still come from suppliers. But I 92 00:04:54.079 --> 00:04:57.560 think it is some good news that the Tesla internal 93 00:04:58.000 --> 00:05:00.720 cell is likely tray needs to be the. 94 00:05:00.720 --> 00:05:02.759 Most competitive in the users. 95 00:05:02.920 --> 00:05:06.519 So with respect to autonomy, as people are experiencing in 96 00:05:06.560 --> 00:05:10.759 the cars, really from week to week, there are significant 97 00:05:10.759 --> 00:05:16.360 improvements in the miles between interventions. So with the new 98 00:05:16.439 --> 00:05:19.800 version twelve poind five, the release of fullstof driving and 99 00:05:19.839 --> 00:05:24.639 cyber truck combining the code into a single stack. The 100 00:05:24.639 --> 00:05:27.600 city driving and the engine and highway driving are one stack, 101 00:05:27.839 --> 00:05:30.439 which is a big improvement for the highway driving. So 102 00:05:30.560 --> 00:05:33.399 it's just all neural nets and the release of actually 103 00:05:33.399 --> 00:05:35.279 smart summon. We try to have a sense of humor 104 00:05:35.279 --> 00:05:38.800 here at test. That's twelve point five. Version thirteen of 105 00:05:39.120 --> 00:05:43.680 FSD is going out soon show we will elaborate more 106 00:05:43.720 --> 00:05:46.560 on that setator in the coal we expect to see 107 00:05:46.600 --> 00:05:49.800 SUT roughly a five or six fold improvement in miles 108 00:05:49.839 --> 00:05:52.759 between interventions compared to twelve point five, and actually looking 109 00:05:52.800 --> 00:05:57.879 at the year's whole, the improvement in miles between the interventions, 110 00:05:58.279 --> 00:06:00.839 we think we'll bring it at least creors bang to 111 00:06:01.240 --> 00:06:05.079 so that's a very dramatic improvement in the course of 112 00:06:05.079 --> 00:06:08.279 a year. We expect that to continue next year. The 113 00:06:08.360 --> 00:06:14.279 characters internal expectation or the chessea FSD having longer miles 114 00:06:14.279 --> 00:06:19.720 between inventional than human is the second quarter of next year, 115 00:06:19.920 --> 00:06:22.120 which means it made up being the third quarter, but 116 00:06:22.160 --> 00:06:25.399 it's it's next It seems extremely likely to be next year. 117 00:06:25.920 --> 00:06:27.399 Do you want to well. 118 00:06:27.879 --> 00:06:32.439 Yeah, interestioning miles between critical interventions like you mentioned it 119 00:06:32.519 --> 00:06:36.240 on we already made that one hundred next improvement twelve 120 00:06:36.360 --> 00:06:38.279 or five from running of this year, and then with 121 00:06:38.360 --> 00:06:41.160 the thirteen release, we expect to be one thousand next 122 00:06:41.240 --> 00:06:43.879 from the beginning from January of this year on my 123 00:06:43.959 --> 00:06:47.199 production release software. And this came in because of uge 124 00:06:47.240 --> 00:06:50.600 improvements going to end to end having higher frame rate, 125 00:06:51.519 --> 00:06:55.480 partly also helped by Harvard Force more capabilities, and we 126 00:06:55.800 --> 00:07:02.839 hope that like Q two next year we should cross 127 00:07:02.959 --> 00:07:07.759 over the average human might spe critical intervention corision that case, 128 00:07:07.920 --> 00:07:10.800 I mean that is just our internal estimate. Yes, aternal 129 00:07:10.800 --> 00:07:13.279 inestimate is Q two next year to be safe than 130 00:07:13.399 --> 00:07:18.000 human and then to continue with rapid improvements thereafter. 131 00:07:18.399 --> 00:07:20.959 The vast majority of humanity has no idea that doesn't 132 00:07:21.199 --> 00:07:24.199 ye themselves. So, especially for something like a Model three 133 00:07:24.480 --> 00:07:25.160 or Model ye. 134 00:07:25.319 --> 00:07:27.800 It looks like a normal car, so you don't expect 135 00:07:27.879 --> 00:07:30.399 normal car to be able to be intelligent enough to 136 00:07:30.439 --> 00:07:33.879 drive itself. If cybocab looks to fix different, cyber truck 137 00:07:33.959 --> 00:07:37.000 looks different, but bottle wine at all? Three are They're 138 00:07:37.040 --> 00:07:39.759 good looking cards but look look fairly normal. You don't 139 00:07:40.199 --> 00:07:43.199 expect a very normal looking car to have the intelligence 140 00:07:43.560 --> 00:07:46.680 enough AI to be able to drive itself, but it does. 141 00:07:47.560 --> 00:07:49.519 So we do want to expose that to more people. 142 00:07:50.199 --> 00:07:53.000 Every time we have a significant improvement in the software, 143 00:07:53.560 --> 00:07:56.160 we'll roll out another sort of third day trial to 144 00:07:56.279 --> 00:07:59.800 encourage people to try it again. And we are seeing 145 00:08:00.160 --> 00:08:03.839 significant improvement and adoption. It will take great for FST 146 00:08:04.120 --> 00:08:08.040 is improved substantially, especially after the ten ten evment. Yeah, 147 00:08:08.079 --> 00:08:09.839 so if there's no need to wait for robot taxi 148 00:08:09.879 --> 00:08:12.439 or stab acab for to experience the full autonomy, we 149 00:08:12.480 --> 00:08:15.399 expect to achieve that next year with our existing big line. 150 00:08:15.360 --> 00:08:18.519 The car ab dedrive itself to the user within paired 151 00:08:18.560 --> 00:08:21.279 parking lots. Currently it is speed limited, but then it's 152 00:08:21.319 --> 00:08:25.360 kind of quickly we increase. We already had more than 153 00:08:25.439 --> 00:08:29.480 a million US which we have Fortesla employees in the 154 00:08:29.480 --> 00:08:33.240 Bay Area. You're right healing your body, so you can 155 00:08:33.279 --> 00:08:35.879 actually use with the development app. You can request a 156 00:08:36.000 --> 00:08:38.919 ride and it'll take you anywhere in the Bay Area. 157 00:08:38.960 --> 00:08:41.600 We do have a safety driver for now, but a 158 00:08:41.759 --> 00:08:44.799 software required to do that we've developed. David, do you 159 00:08:44.840 --> 00:08:46.879 want to collaborate on the Yeah, sure, Stavid. 160 00:08:47.000 --> 00:08:49.720 We shared different screenshots of this in the Key one 161 00:08:50.000 --> 00:08:52.840 shareholder deck, but this is real. We've been testing it 162 00:08:52.879 --> 00:08:54.639 for the part of the year. The building blocks that 163 00:08:54.679 --> 00:08:57.159 we needed to build this functionality in delivery and production 164 00:08:57.240 --> 00:08:59.519 we've been thinking about working on for years. It just 165 00:08:59.519 --> 00:09:02.240 so happened is that we've used those building blocks to 166 00:09:02.279 --> 00:09:05.240 deliver great features for our customers in the meantime, such 167 00:09:05.279 --> 00:09:08.799 as sharing your profile, synchronizing and across cars so that 168 00:09:08.840 --> 00:09:11.279 every single car that you jump into, whether it's another 169 00:09:11.320 --> 00:09:13.120 car that you own or some a car that somebody's 170 00:09:13.159 --> 00:09:15.039 loaned to you, or a rental car that you jump into, 171 00:09:15.080 --> 00:09:19.080 it looks exactly like yours. Everything synchronized, seat mirror positions, 172 00:09:19.279 --> 00:09:23.120 media navigation, everything is the same, just what you would 173 00:09:23.120 --> 00:09:27.039 expect from one of our robotaxis. We gave that functionality 174 00:09:27.080 --> 00:09:30.080 to our customers right now because we've built it intending 175 00:09:30.080 --> 00:09:31.120 for it to be used. 176 00:09:30.919 --> 00:09:31.799 In the future. 177 00:09:31.960 --> 00:09:36.200 Releasing that functionality now all the cybersecurity that we knew 178 00:09:36.200 --> 00:09:38.919 we were going to need to deliver that functionality. Sending 179 00:09:38.919 --> 00:09:41.879 a navigation to destination from your phone to the vehicle. 180 00:09:42.159 --> 00:09:44.519 You're doing that now with the right Hailing app, but 181 00:09:44.519 --> 00:09:48.639 it's something that we've made available customers for years. Seeing 182 00:09:48.639 --> 00:09:51.080 the progress on a route in the mobile app. That's 183 00:09:51.080 --> 00:09:53.080 something you'll need for the right Haling app. But again, 184 00:09:53.159 --> 00:09:55.480 we released it in the meantime, so it's not like 185 00:09:55.519 --> 00:09:57.240 we're just starting to think about this enough right now 186 00:09:57.240 --> 00:09:59.399 while we're building out the early stages of our right 187 00:09:59.440 --> 00:10:01.240 Haling network. We've been thinking about this for quaitely a 188 00:10:01.240 --> 00:10:03.399 long time, and we're excited to get the function out. 189 00:10:03.240 --> 00:10:06.440 There, and we do expect to roll out right Heiling 190 00:10:06.679 --> 00:10:10.200 in California and Texas next year to the public. The 191 00:10:10.240 --> 00:10:14.240 California is somewhere that's quite a long regulatory approval process, 192 00:10:15.159 --> 00:10:17.159 it shouldn't. I think we should get approval next year, 193 00:10:17.159 --> 00:10:21.039 but it's continued upon a regulatory approval. Texas is a 194 00:10:21.080 --> 00:10:23.519 lot faster, so I'd say we'll definitely have available in 195 00:10:23.600 --> 00:10:27.639 Texas and probably haven't available in California subject torctigulatory approval, 196 00:10:28.159 --> 00:10:30.320 and maybe some other states actually next year as well, 197 00:10:30.360 --> 00:10:32.559 but at least California and Texas, so I think that'd 198 00:10:32.600 --> 00:10:35.120 be very exciting. But it's really a profound change. The 199 00:10:35.240 --> 00:10:39.559 Tesli becomes more than a sort of vehicle and a 200 00:10:39.679 --> 00:10:43.360 free main battering company. At that point, we published Q 201 00:10:43.440 --> 00:10:47.039 three Bibicle Safety Report which shows one faster for every 202 00:10:47.159 --> 00:10:49.960 seven miles of water pilot that compressed the US average 203 00:10:50.039 --> 00:10:53.559 water crash roughly every seven hundred thousand miles. So it's 204 00:10:53.840 --> 00:10:58.559 currently showing a tanx safety improvement relative to the US average. 205 00:10:58.679 --> 00:11:01.799 And we continue to expand our a training capacity to 206 00:11:01.840 --> 00:11:04.399 accommodate the needs of both the FSTY and optimists. We're 207 00:11:04.399 --> 00:11:07.399 currently not a training compute constraint. It's probably the big 208 00:11:07.399 --> 00:11:10.919 slimity factors that the EPSTY is actually getting so good 209 00:11:10.960 --> 00:11:13.960 that it takes us a while to actually find mistakes 210 00:11:14.039 --> 00:11:17.519 when you start getting to where it can take ten 211 00:11:17.559 --> 00:11:20.720 thousand miles to find a it's a mistake. 212 00:11:21.279 --> 00:11:23.840 It takes a while to actually figure out which it is. 213 00:11:24.000 --> 00:11:27.000 Is this well, it's a software bolt better than the 214 00:11:27.080 --> 00:11:29.840 software bolt, a bet than software bolet B. It actually 215 00:11:29.840 --> 00:11:31.799 takes a while to figure it out because neither one 216 00:11:31.799 --> 00:11:34.399 of them will making mistakes. It takes a long time 217 00:11:34.440 --> 00:11:36.440 to make mistakes. How long does it take us to 218 00:11:36.480 --> 00:11:39.399 figure out which version is better? Sort of high class problem. 219 00:11:39.519 --> 00:11:42.879 Obviously having a giant fleet is very helpful for breaking 220 00:11:42.879 --> 00:11:45.519 this out. I think with Optimists we start of a 221 00:11:45.600 --> 00:11:48.559 mass of improvement in Optimist to exterity movement on or 222 00:11:48.600 --> 00:11:52.519 two a tenth and our next gen handed form, which 223 00:11:52.600 --> 00:11:56.039 is twenty two degrees of freedom double the prior handed 224 00:11:56.080 --> 00:11:59.559 worong it's extremely human like, and will say it's much 225 00:11:59.600 --> 00:12:03.720 better attacked ale sensing. I feel confiden saying that we 226 00:12:03.919 --> 00:12:06.799 have the most advanced human right robot by long shot, 227 00:12:07.039 --> 00:12:10.399 and we're moreover the only company that really has all 228 00:12:10.399 --> 00:12:13.840 of the ingredients necessary to scale human right robots, because 229 00:12:14.039 --> 00:12:16.639 the things that that what other companies missing is that 230 00:12:16.720 --> 00:12:21.279 they're missing the AI brain, they're missing the blot really 231 00:12:21.320 --> 00:12:24.879 scale to very high volume production, so you sometimes see 232 00:12:24.879 --> 00:12:28.279 some impressive video demos. But what they like the they 233 00:12:28.440 --> 00:12:31.840 like the localized AI and the polite to scale volume 234 00:12:31.919 --> 00:12:34.080 to very high nverse. As I've said on a few 235 00:12:34.120 --> 00:12:39.440 occasions before, I think optimists will ultimately be most it's 236 00:12:39.440 --> 00:12:41.720 a good chance of being the most valuable product ever 237 00:12:41.759 --> 00:12:44.600 made for the energy business that's doing extremely well. The 238 00:12:44.759 --> 00:12:48.639 lad Through megapack factory reached two hundred megapacks a week, 239 00:12:49.600 --> 00:12:52.519 which is now a forty gigle what hour year, and 240 00:12:52.879 --> 00:12:56.720 we have a second factory in Shanghai that will begin 241 00:12:56.799 --> 00:12:59.240 with the twenty gig what our year run rates Q 242 00:12:59.320 --> 00:13:01.799 one next year so just the next quarter, and that'll 243 00:13:01.840 --> 00:13:04.559 pop also scale up. It won't be long before we're 244 00:13:04.600 --> 00:13:07.639 shipping one hundred gig white hours a year stationary storage, 245 00:13:07.759 --> 00:13:10.399 that's all, and that will ultimately grow, I think to 246 00:13:11.000 --> 00:13:13.399 multiple turor whatte hours per years. It has to actually 247 00:13:13.399 --> 00:13:16.000 in order to have a sustainable energy future. If you're 248 00:13:16.000 --> 00:13:18.360 not at the terraboid scale, you're you're not really moving 249 00:13:18.360 --> 00:13:18.759 the needle. 250 00:13:19.000 --> 00:13:21.039 So if if you look. 251 00:13:20.960 --> 00:13:24.399 At our very complicated last master plan, which I think 252 00:13:24.399 --> 00:13:27.759 actually is too much, email, maybe least to analyze it 253 00:13:27.799 --> 00:13:31.679 and shorten enough yet give us the tail VR on 254 00:13:32.480 --> 00:13:35.559 the last master plan. But we showed that mass plan 255 00:13:35.679 --> 00:13:38.200 that it is possible to take all of OOSE to 256 00:13:39.320 --> 00:13:44.000 a fully sustainable energy situation using sustainable energy power generation 257 00:13:44.720 --> 00:13:48.879 in batteries and electric transport. And there are no fundamental 258 00:13:48.919 --> 00:13:53.799 material limitations, like there's not some very rare material that 259 00:13:53.840 --> 00:13:55.799 we don't have enough blog on it. We actually have 260 00:13:55.879 --> 00:13:58.799 enough with the raw materials to take all of human 261 00:13:58.799 --> 00:14:03.159 civilization make it fully sustainable. And even if civilization dramatically 262 00:14:03.200 --> 00:14:06.799 increased its trust, the usage could still be fully sustainable. 263 00:14:06.960 --> 00:14:09.799 You know, one way to think of the progress of 264 00:14:09.799 --> 00:14:14.799 a civilization is percentage completion of cutdoship scale Cardashi of 265 00:14:14.840 --> 00:14:18.200 scale one would be you're using all the power of 266 00:14:19.440 --> 00:14:22.440 a planet. We're currently less than one percent on cudship 267 00:14:23.159 --> 00:14:25.960 level one. Level two would be you're using all the 268 00:14:26.000 --> 00:14:29.440 power of the sun. Now level three all the power 269 00:14:29.440 --> 00:14:35.279 of the galaxy long ago. When you think of crdoship terms, 270 00:14:35.879 --> 00:14:38.840 it becomes obvious that the biggest source of energy is 271 00:14:38.879 --> 00:14:43.840 the sun. Everything else is in the noise, So same conclusion. 272 00:14:44.200 --> 00:14:47.000 Tella is focused on playing the future of energy, transport, 273 00:14:47.080 --> 00:14:50.279 robotics in the ANI and this is a time when 274 00:14:50.399 --> 00:14:54.440 others are just focused on managing around neartim trends. We 275 00:14:54.480 --> 00:14:58.440 think what we're doing is the right approach and if 276 00:14:58.440 --> 00:15:02.200 we execute on our objective, I think we will tell 277 00:15:02.279 --> 00:15:04.879 us that my predictions will become most valuable company in 278 00:15:04.879 --> 00:15:08.639 the world, probably long by long shot. I want to 279 00:15:08.639 --> 00:15:12.159 thank that tells the team once again for strong execution 280 00:15:12.320 --> 00:15:15.679 in a tough operating environment and looking forward to building 281 00:15:16.240 --> 00:15:17.480 an incredibly exciting future. 282 00:15:17.679 --> 00:15:20.320 Thank you great, Thank you very much, Elan, and about 283 00:15:20.360 --> 00:15:21.600 personal bigger works as well. 284 00:15:22.279 --> 00:15:25.960 Thanks our Q three results while we're on positive and 285 00:15:26.000 --> 00:15:30.200 once again demonstrate the skill which businesses involved with the 286 00:15:30.480 --> 00:15:33.639 generation of record operating cashlows of six month three billion. 287 00:15:33.879 --> 00:15:37.919 Automotive revenues grew both quarter and quarter a year early 288 00:15:38.000 --> 00:15:40.799 year while we had unit While in growth, we did 289 00:15:40.840 --> 00:15:44.639 experience reduction in asps, primarily due to the impact of 290 00:15:44.720 --> 00:15:49.799 financing incentives. As a reminder, we're providing these incentives primarily 291 00:15:49.919 --> 00:15:53.600 using third party banks and financial institution and recognize the 292 00:15:53.679 --> 00:15:56.960 cost of these incentives as an affront reduction. Together, we 293 00:15:57.080 --> 00:16:01.360 released FSD for cyberchuk another features like actually Smart someone 294 00:16:01.440 --> 00:16:02.120 like PLA. 295 00:16:01.919 --> 00:16:04.360 Talked about in North America, which. 296 00:16:04.159 --> 00:16:06.840 Contributed three hundred and twenty six million of revenues in 297 00:16:06.879 --> 00:16:09.679 the quarter. We continue to see anybody levels of regular 298 00:16:09.840 --> 00:16:12.159 story credit sales with about two. 299 00:16:11.960 --> 00:16:13.480 Billion of revenues so far. 300 00:16:13.559 --> 00:16:18.480 This China continues to outperform US in Europe factor of three. 301 00:16:19.240 --> 00:16:21.759 This gives a signal of what is to come in 302 00:16:21.840 --> 00:16:26.440 other regions as customers acceptance of EV grows. A focus 303 00:16:26.480 --> 00:16:29.799 remains on growing unit volume while avoiding a build up 304 00:16:29.799 --> 00:16:34.799 of To support this strategy, we're continuing to offer extremely 305 00:16:34.840 --> 00:16:38.840 compelling vehicle financing options in everyone. When you compare any 306 00:16:38.919 --> 00:16:43.480 vehicle in our lineup with other OEMs, believe our vehicles 307 00:16:43.519 --> 00:16:49.200 provide much better value, particularly when you consider the safety features, performance, 308 00:16:49.600 --> 00:16:55.159 and unparalleled software functionalities like David also talked about, include 309 00:16:55.519 --> 00:17:00.279 also what show had talked about around autonomy, music options, 310 00:17:00.639 --> 00:17:04.880 parental controls, and much more. While every vehicle in our 311 00:17:04.920 --> 00:17:07.960 lineup comes up with these capabilities, there is an awareness 312 00:17:08.000 --> 00:17:11.559 cap not just with buyers, but at times even with 313 00:17:11.680 --> 00:17:15.319 existing owners. We plan on making these more visible in 314 00:17:15.319 --> 00:17:20.039 our interactions with both existing and future customers. Automotive margins 315 00:17:20.279 --> 00:17:24.119 improved quarter or quarter as a result of equity feature release, 316 00:17:24.480 --> 00:17:28.599 discuss reform increase in our overall production and delivery varning, 317 00:17:29.200 --> 00:17:33.160 hoping it benefit from the marketing pricing and more localized 318 00:17:33.200 --> 00:17:36.440 deliveries in region which resulted in lower freight and duties. 319 00:17:37.079 --> 00:17:40.720 Sustaining these margins in Q four, however, will be challenging 320 00:17:41.440 --> 00:17:46.160 given the current economic environment, so that we are focused 321 00:17:46.200 --> 00:17:49.519 on the cost per vehicle and there are numerous workstreams 322 00:17:49.559 --> 00:17:52.920 within the company to squeeze our costs without compromising on 323 00:17:53.039 --> 00:17:53.960 customer experience. 324 00:17:54.279 --> 00:17:54.519 Yeah. 325 00:17:55.000 --> 00:17:59.400 Something that's helpful, hopefully helpful macro trend is if there's 326 00:17:59.480 --> 00:18:04.160 a decline in interest rates, this has a massive effect 327 00:18:04.279 --> 00:18:08.079 on automotive vast majority of people is the demand is 328 00:18:08.119 --> 00:18:12.160 driven by the muscle payment. Connect with muscle payment, so 329 00:18:12.400 --> 00:18:15.480 most life well see continue to decline interest rates which 330 00:18:15.640 --> 00:18:17.279 helps with portability phables. 331 00:18:17.640 --> 00:18:20.119 Yeah, I mean that is one trend which we observed 332 00:18:20.119 --> 00:18:23.680 in the industry that you know, because of the fudability 333 00:18:23.799 --> 00:18:27.400 being impacted because of interest rates, people are holding on 334 00:18:27.559 --> 00:18:30.960 to the cars longer, especially in the US, and that 335 00:18:31.079 --> 00:18:34.720 is actually having an impact on our industrytive. While we 336 00:18:34.799 --> 00:18:37.759 did see a decline in Q three, we expect to 337 00:18:37.759 --> 00:18:40.640 go deployment sequentially in Q four to end the year 338 00:18:41.640 --> 00:18:44.799 more than double the of last year thirtie margins in 339 00:18:44.880 --> 00:18:47.920 Q three for our record at more than thirty percent. 340 00:18:48.519 --> 00:18:50.839 This is a function of mix up projects being deployed 341 00:18:50.880 --> 00:18:54.079 in the quarter. Note that there will be fluctuation in 342 00:18:54.200 --> 00:18:59.000 margins as we manage through deployments and our inventory. Our 343 00:18:59.039 --> 00:19:02.839 pipeline impact law continue to grow quarter work quarter as 344 00:19:02.880 --> 00:19:06.680 we fill our twenty twenty five production slots, and we're 345 00:19:06.720 --> 00:19:09.359 doing our best to keep with the demand. Just coming 346 00:19:09.400 --> 00:19:13.240 back on automotive margins, I talked about what is happening. 347 00:19:13.720 --> 00:19:15.799 One other thing which I want to also share is 348 00:19:16.279 --> 00:19:20.799 that we will continue to keep whatever we can to see. 349 00:19:21.000 --> 00:19:23.960 Like I said before about squeezing out the costs, but 350 00:19:24.279 --> 00:19:27.480 this is something which we also are very capable of. 351 00:19:27.640 --> 00:19:31.160 I mean, just in Q three we really reach our 352 00:19:31.200 --> 00:19:33.440 lowest cost per wide and that is a trend which 353 00:19:33.440 --> 00:19:36.519 we want to focus on. Then going onto service another 354 00:19:36.759 --> 00:19:39.440 we continue to show improvements in Q three. This was 355 00:19:39.480 --> 00:19:42.839 the result of better performance both in our service business 356 00:19:42.920 --> 00:19:46.799 which includes collision and parts, sales and merchandise, and continued 357 00:19:46.880 --> 00:19:50.519 growth and super charging his fleet based revenues will continue 358 00:19:50.559 --> 00:19:53.880 to grow as the lower of fleet size increases, our 359 00:19:53.920 --> 00:19:57.160 operating expenses decline quarter work quarter and an year on 360 00:19:57.240 --> 00:20:00.319 ear basin. This is partially due to the restructuring took 361 00:20:00.400 --> 00:20:03.480 in Q two. Cost saving from these initiatives were partially 362 00:20:03.680 --> 00:20:07.839 offset by increasing costs related to our aifforts. We've started 363 00:20:07.960 --> 00:20:10.519 using the GPU cluster based out of our factory in 364 00:20:10.640 --> 00:20:14.119 US ahead of schedule, and I will track to get 365 00:20:14.160 --> 00:20:16.559 fifty k gbus deployed in Texas by the end of 366 00:20:16.599 --> 00:20:19.759 this month. One thing which I'd like to elaborate is 367 00:20:19.799 --> 00:20:24.000 that we're being very judicious on our AI compute span too, 368 00:20:24.680 --> 00:20:27.880 and saying how best we can utilize the existing infrastructure 369 00:20:27.920 --> 00:20:31.000 before making partner investments. On the capex front, we had 370 00:20:31.039 --> 00:20:33.799 about three and a half billion in the quarter. This 371 00:20:33.960 --> 00:20:37.880 was a sequential increase margin because of investments in AI compute. 372 00:20:38.319 --> 00:20:40.799 We now expect the CAPEX for the year to be 373 00:20:40.839 --> 00:20:43.519 in excess of eleven billion. We shared our vision for 374 00:20:43.599 --> 00:20:45.559 the future at the view of what event at the 375 00:20:45.559 --> 00:20:48.079 beginning of the month. The TESTLA team is hyper focused 376 00:20:48.079 --> 00:20:51.519 on delivering on that version. All efforts are underway to 377 00:20:51.559 --> 00:20:55.599 make it a reality. While we've achieved significant progress this year, 378 00:20:56.200 --> 00:20:58.640 it will take time to get this as we finally 379 00:20:58.799 --> 00:21:04.359 new and incredibly complex technologies and navigate a fragranted regulatory landscape. 380 00:21:05.000 --> 00:21:08.200 Future is incredibly bright and I want to tag the 381 00:21:08.279 --> 00:21:10.559 de'st looting once again called great. 382 00:21:10.799 --> 00:21:13.119 Thank you very much for up. Now we'll go to 383 00:21:13.240 --> 00:21:17.039 investor questions. The first one is is Tesla still on 384 00:21:17.119 --> 00:21:19.799 track to deliver the more affordable model next year as 385 00:21:19.839 --> 00:21:22.519 mentioned by elan earlier? And how does it align with 386 00:21:22.559 --> 00:21:23.400 your AI product? 387 00:21:23.480 --> 00:21:23.599 Right? 388 00:21:23.640 --> 00:21:25.960 MAT permission has always been to lower the cost of 389 00:21:26.559 --> 00:21:29.680 the our vehicles to increase the adoption of sustainable energy 390 00:21:29.720 --> 00:21:32.079 and transport. Part of that is lowering the costs for 391 00:21:32.200 --> 00:21:35.920 current vehicles, which is where all of the personally. 392 00:21:35.599 --> 00:21:37.119 Owned vehicles that we sell today come in. 393 00:21:37.160 --> 00:21:39.200 But the next stage in that really is it fits 394 00:21:39.200 --> 00:21:41.440 into AI roommap is when we bring in romotax the 395 00:21:41.440 --> 00:21:43.720 specially as the initial cost of getting into an EV. 396 00:21:44.079 --> 00:21:46.599 And that's really where we see the marriage of EV 397 00:21:47.279 --> 00:21:48.400 roadmap and the ANIMI. 398 00:21:49.200 --> 00:21:52.119 I'll be like with with incentives to thirty k, which 399 00:21:52.160 --> 00:21:54.400 is kind of a key threshold. 400 00:21:54.119 --> 00:21:59.319 Right, thanks very much. A similar question next, when can 401 00:21:59.359 --> 00:22:01.720