Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tesla Inc (TSLA, Financial) achieved record deliveries in Q3 2024, despite a challenging automotive environment.
- The energy storage business is experiencing strong demand, with the Lathrop Megapack factory reaching a 40 gigawatt-hour annual run rate.
- Tesla's internal 4680 battery cell is approaching cost competitiveness, potentially becoming the most competitive cell in North America.
- Significant improvements in Full Self-Driving (FSD) technology, with expectations of a five to six-fold improvement in miles between interventions.
- Tesla's AI and robotics advancements, including humanoid robots and autonomous vehicles, are progressing rapidly, with plans to roll out ride-hailing services in California and Texas next year.
Negative Points
- Tesla Inc (TSLA) faces challenges in sustaining automotive margins due to economic conditions and financing incentives.
- The rollout of autonomous vehicles is contingent upon regulatory approvals, particularly in states like California.
- There is uncertainty regarding the capability of Hardware 3 to achieve unsupervised FSD, which may require upgrades.
- Tesla's focus on autonomy and high-tech features may lead to longer wait times at service centers, despite efforts to improve service efficiency.
- The development of the Tesla Roadster has been delayed, as the company prioritizes projects with a more significant impact on sustainable energy.
Q & A Highlights
Q: Is Tesla still on track to deliver the more affordable model next year, and how does it align with your AI and product roadmap?
A: Lars Moravy, Vice President of Vehicle Engineering, confirmed that Tesla is on plan to meet the delivery of the more affordable model in the first half of next year. The ambition is to lower vehicle costs to increase the adoption of sustainable energy and transport. This aligns with the AI roadmap as Tesla brings in robotaxis, which lowers the initial cost of getting into an EV.
Q: When can we expect Tesla to give us the $25,000 non-robotaxi regular car model?
A: Elon Musk, CEO, stated that Tesla is focused on autonomous electric vehicles, and a regular $25,000 model is not aligned with their vision. The future is autonomous, and Tesla's vehicles will be designed for autonomy, with the Cybercab being a dedicated autonomous vehicle.
Q: What is Tesla doing to alleviate long wait times at service centers?
A: Ashok Elluswamy, Vice President of AI Software, explained that Tesla aims to solve problems at the source, at the factory, before they affect customers. The best service is no service, and Tesla is expanding service locations and increasing the size of service centers to improve efficiency.
Q: Please provide an update on the Tesla Semi. What will the next stage of growth look like, and when will it be ready?
A: Lars Moravy, Vice President of Vehicle Engineering, mentioned that Tesla is progressing on the build of the Semi factory in Reno. Pilot builds are expected in the second half of next year, with production starting in the first half of 2026. The growth will depend on customer adoption, but demand is high.
Q: What is the relationship between Tesla and xAI, and how does it benefit Tesla?
A: Elon Musk clarified that xAI has been helpful to Tesla AI, particularly in scaling and training improvements. While xAI focuses on artificial general intelligence, Tesla is focused on real-world AI for autonomous cars and robots. The two companies address different problems but can collaborate on certain aspects.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
