Everything Elon Musk Said At Tesla's Q1 2024 Earnings Call

Summary

The transcript discusses Tesla's Q1 performance amidst challenges, including the ramp-up for the updated Model 3 and Fremont's production pressures. Despite global EV adoption rates being under pressure and other manufacturers shifting to plug-in hybrids, Tesla remains committed to electric vehicles, expecting them to dominate the market. The company achieved record profitability in the energy business, largely due to the MEAP pack's all-time high deployments. Tesla is also expanding its AI training capacity, with plans to accelerate the launch of new vehicle models, including more affordable ones using a blend of current and next-generation platforms. The company's Full Self-Driving (FSD) V12 has been rolled out to over 1.8 million vehicles in North America, with a significant portion of users adopting it. Tesla's AI infrastructure is growing, with 35,000 h100 computers commissioned and plans to increase to 85,000 by year's end. Regulatory approval for unsupervised FSD in the US is anticipated, with Tesla positioning itself as an AI robotics company. The company is also developing Optimus, a humanoid robot, aiming for limited production by the end of the year. Tesla continues to focus on growth, profitability, and preparing for an autonomous and electric vehicle future.

Takeaways

• 🚗 Despite challenges, Tesla remains committed to electric vehicles (EVs) and believes they will dominate the market over plug-in hybrids.
• 📈 The Tesla team achieved record profitability for the energy business in Q1 and anticipates continued growth in the future.
• 🚀 Energy storage deployments, particularly the MEAP pack, reached an all-time high in Q1.
• 🔧 Tesla has more than doubled its AI training capacity sequentially, indicating a significant expansion in AI capabilities.
• 🚀 New vehicle models are in the pipeline, with an accelerated launch expected in early 2025, including more affordable options using aspects of both next-generation and current platforms.
• 🤖 Tesla's AI-based self-driving, FSD version 12, is being rolled out to all cars with Hardware 3 in North America, with a rapid improvement rate.
• 📉 Tesla has reduced the Full Self-Driving (FSD) subscription price to $99 a month to encourage more users to try it out.
• 🤖 Tesla is actively working on expanding its core AI infrastructure, with plans to significantly increase the number of active h100 computers by the end of the year.
• 🚖 The company envisions a future where autonomous electric vehicles are as common as elevators, with a fleet operated by Tesla, combining elements of Airbnb and Uber.
• 🔋 Tesla is considering the potential for distributed inference, similar to AWS, utilizing the idle compute power of its large fleet of cars for additional revenue streams.
• ⚙️ The company is making progress with its 4680 cell production and sees it as a hedge against rising battery costs from other suppliers.

Q & A

What challenges did the company face in Q1?

The company navigated several unforeseen challenges, including the ramp for the updated Model 3 and Fremont, and a decrease in the global EV adoption rate which led to other manufacturers pulling back on EVs in favor of plug-in hybrids.

What is the company's stance on the shift of other manufacturers to plug-in hybrids?

The company believes that the shift to plug-in hybrids is not the right strategy and maintains its belief that electric vehicles will ultimately dominate the market.

What was the performance of the energy storage deployments in Q1?

Energy storage deployments, particularly the MEAP pack, reached an all-time high in Q1, leading to record profitability for the energy business.

What is the expected timeline for the launch of new vehicle models?

The company has updated its future vehicle lineup to accelerate the launch of new models, with production expected to begin in the second half of 2025 or possibly late 2024.

How will the new vehicle models be produced?

The new vehicles will use aspects of the Next Generation platform as well as aspects of the current platforms and will be produced on the same manufacturing lines as the current vehicle lineup without the need for a new factory or massive new production line.

What is the current status of FSD version 12?

FSD version 12, which is a pure AI-based self-driving system, has been rolled out to all cars with the cameras and inference computer from Hardware 3 on in North America, and is being used by around half a million vehicles with increasing adoption rates.

How has the company addressed the subscription price for FSD?

The company has reduced the subscription price to $99 a month to make it more accessible for users to try out.

What is the company's vision for its robot taxi, CyberCap?

The company plans to showcase its purpose-built robot taxi, CyberCap, in August, indicating a move towards autonomous vehicle services.

What advancements have been made in AI training capacity in Q1?

The company more than doubled its training compute sequentially in Q1, indicating significant expansion in its AI training capacity.

What is the current status of the Optimus humanoid robot?

The company is working on bringing Optimus to limited production in the actual factory by the end of the year and may be able to sell it externally by the end of the next year.

What is the company's perspective on regulatory approval for unsupervised FSD in the US?

The company believes that as long as there is conclusive data showing that autonomous cars are safer than human-driven cars, there should not be significant regulatory barriers to approval.

How does the company view its role in the future of transportation?

The company envisions a future where gasoline cars that are not autonomous will be as obsolete as riding a horse and using a flip phone, and it sees itself as an AI robotics company at its core.