Episode 456: A New “Model 2”! Tesla Q1 Earnings Call Highlights and Analysis
Apr 28, 2024
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Highlights from the Tesla earnings call include a new affordable vehicle, price cuts on Full Self-Driving, the Model 3 Performance launch, and a new paint option for the Model Y. Discussion on FSD pricing strategy, Cybertruck impact, Model 3 performance, Tesla's future plans, Model 2.5 unveiling, advancements in AI infrastructure, 4680 battery production, and evolution of self-driving cars.
Tesla plans to launch a new low-cost vehicle sooner, optimize production lines for Cybertruck, leverage existing capacity for affordable cars.
Autonomous vehicle laws evolving in states, regulatory approval for FSD expected based on safety statistics, envisioning seamless autonomous transportation experiences.
Utilizing inferencing compute power from idle cars for AI tasks globally, reevaluating future vehicle lineup for cost efficiency and autonomy solutions.
Tesla strategically developing Tesla Semi for high-volume production, aiming for external deliveries in 2026 with a focus on safety and quality in EV trucking.
Deep dives
4680 Battery Cell Production Increase
In Q1, the 4680 production increased by about 18-20%, reaching over 1,000 units per week for the Cybertruck, equivalent to about 7 gigawatt hours per year. The third of four production lines is being ramped up, maintaining multiple weeks of salamatory and continuously improving yield rates.
Optimists Robot Update
Tesla expects to have optimists in limited production in the factory by the end of this year, and potentially to be sold externally by the end of next year. The company views optimists as potentially more valuable than all other products combined due to its capacity for navigating reality and performing tasks at request.
Regulatory Approval for FSD
Certain states in the US have adopted autonomous vehicle laws, paving the way for operations. Regulatory approval for FSD is expected to be influenced by data showing improved safety statistics compared to human-driven cars. Elon Musk likens the future of autonomous car regulation to elevators, where users simply summon and utilize vehicles without manual intervention.
Future Adoption of Autonomous Vehicles
As autonomous cars demonstrate statistically significant safety advantages over human drivers, regulatory barriers to their adoption may diminish. Elon Musk envisions a future where autonomous vehicle operation becomes as seamless as using an elevator, simplifying transportation experiences.
Advantages of Distributed Inference Computing in Tesla's 100 Million Fleet
Tesla envisions leveraging the inference compute power from millions of cars in a fleet when not in use for driving. By distributing inferencing, Tesla could utilize substantial computing power worldwide for tasks like running AI models with fewer computational demands.
Strategic Shift Towards Low-Cost Vehicles Acceleration
Tesla is strategically reevaluating its future vehicle lineup to expedite the launch of low-cost vehicles efficiently. By leveraging existing production lines and open capacity, Tesla aims to offer affordable cars to customers quickly, emphasizing solving autonomy as a primary objective.
Tesla Semi's Production Timeline and High Volume Goals
The production of Tesla Semi is focused on enabling cost-effective high-volume production based on insights from pilot fleets. With construction underway for the factory and vehicles planned for late 2025, Tesla targets external customer deliveries starting 2026, emphasizing the meticulous approach to ensure safety and quality in EV trucking.
Tesla held its quarterly earnings call and we got some major announcements, such as a new low-cost vehicle that’s coming sooner than you think, a big price reduction for the purchase price of FSD, the long-anticipated launch of the new Model 3 Performance, and much more!
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