Tesla Q3 2024 Financial Results and Q&A with Elon Musk
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Hey everybody, you welcome back to the england must podcast. This is a show where we discussed the critical crossroads, the ship space ex tesla x the boring company in neural ink. I'm your host. Will welden afternoon .

everyone who walks the text as three quarter twenty twenty four Q N. A. wecks. But I was trained having the best relations, and i'm enjoying today by you my mask. They got to nation.

And a number of the executives are q three results were announced about three P. M. Central time in the update deck we published at the same link as this broadcast. During this call, we will discuss our business outlook and make foreign looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could different material ally due to number risks and uncertainties, including those mentioned in our most recent finance V S C, C, you in the question and answer a portion of this call, please let me yourself to one question and one follow up. Please use the raise handbag and to join the question cute before we jump in to q and you want has some .

moon reMarks you want ah so to recap someone saying, uh something that industry saying europe ur declines in what the volumes in A Q three test up the same time as achieved a record deliveries. In fact, I think if you look at uh E, D companies worldwide, the best my knowledge, no E B companies even profitable and i'm not the best my log. There was no evil division of any company of an existing order company that is profitable. So as not all that tells that is profitable despite very chAllenging one more requirement. And and and this quarter, actually it's record q three for us.

Um so we .

produced ed, our seventh and vehicle actually just yesterday. So to the teams that made to happen tesn't as that address not work to make seven cars. Um so I decided we also have any story process is working like White fire. I was strong demand over back back and travel um and as people know um on october we laid out a vision for an autonomous and like the future and I think is very compelling us for the view that the tested did a phenomenal b there with um IT actually giving people an option to experience the future. Uh what where you have human ord robots walking among the crowd not not you know would become Better your presentation or anything but actually walking among the crowd so we drinks what not and um and we had fifty thousand years because because there twenty seven cabs but they were an additional thirty model lies Operating for the autonomy the entire Carrying thousands, thousands people but thousands of people shrink um was was no incident, they turned out um so had ended for those winter that I had was with debt sizing that this the same cap had no same well or break the celerity peddles making there was no there no post there there was way for anyone to interview manly even if they wanted to and the whole night worked very smoothly. So um regarding that a business, we are still tracked to deliver more for all models starting in the first time for twenty five.

You know this is .

I think public people want to go what should they are looking for? Uh, final sales growth next year. I and I at the risk of to take a Better risk here, I do want give some some rough estimate, which I think it's twenty to thirty percent vehicle growth next year. Um you know not starting negative and events like if this some portion mature events like some big war breaks out or interest rates ago sky high was something like that then week we can I become master force mature events but I I think with a cosplay with the event, antony, something like a twenty to thirty cent growth next year is is my baskets and and then and then side a cap reaching vine production and twenty sex we do feel confident of service cap reaching buying production twenty six so just starting production but reaching buying production .

twenty six um .

and that you know that that that should be substantive birthday work for least two million units a year of a siva b that i'll be in modern one I think it's at least you may form money .

ultimate so yeah it's just my best gases but you .

have for my best guesses that the dog was my best cases um the the forty .

six that the cell forty .

six eighty lines the team is are doing great work there. Um the forty six eight is a rapidly approaching the point where IT is the most competitive self. So when you consider the the fully the fully landed the cost of of a battery bag fully landed in the U.

S. Net of incentives and dirty out, the forty forty six eighty is tracking to be the most competitive made in lower cosmic and what are fully concerned than any adults. And i'm not quite there yet, but word, we're close to be there watching because is really exciting.

And we got so a lot of ideas to go well beyond that. So if I don't think this, if we excute well, the four to six eighty will have the the eternally produced cell will be the most cost competitive self in into new america. Attested to comments of hard work there from by the change so um that that a will will take by a lot of self from to provide to make cells recently.

So I went to sort of any mobiles here. Uh we will increasing uh substantially our basic upward and our stationary storage up with. So we need a lot sales um and most most still come from suppliers.

But but I think IT is IT is some good new that the tesla internal cell is likely is time for the mosen. And then. So with respect to autonomy, as people have are expecting in the cars um really from week to week, uh, there are significant improvements in the miles between venture.

Um so with that, the new version pop for five release of also driving side truck, the combining recovered into a single tax, the city driving and the enter highway driving or once back up, which is a bigger problem for the highway driving. So it's it's just all your nets and the release of actually smart Simon, we tried to have sense here here just. Everywhere also so that that's what for five, a version thirteen of easton what is going out soon shop elevate more on that to Better at home. Um we we expect to see up roughly a five or six fall improvement in miles between interventions come back to top five five um and actually looking at the the year's whole um the improvement uh in mild Green and events, we think at least three hours to so if that's that's .

a very dramatic .

improvement IT at the coast of year and we expect that try to continue year. So like that the court, the cart internal expectation exercise, international fiction. The just everything day having a longer miles tween american women is the second quarter next year.

which means bad man energy.

the truth or but it's it's next IT seems extremely likely to be next year. So you want to everything .

in machine mines between critical interventions yeah likely be mentioned on we already made a underdeveloped improvement which not fire from running of this year. And then with with that in release, we expect gay um a thousand years from the beginning, from january here on my productive soccer um and this came in because energy movements going to end to end uh having higher frame rate uh partly also held by harvard force are more capabilities um so on. And we hope that we continue to scale the newer network, the data, the training compute, the by q to next year we should cross over the average human myspace critical intervention collision in the case I mean .

that is just um unboring shed our intern estimate yeah um so um that does not and back growing .

thing else .

journalist m is due to make sure to be safe human and then to continue with rapid prevents the after.

went.

To the. A best majority of humanity has no idea that first by myself, so actually was something like like a model free or model line. IT looks like a Normal car.

So you are expect Normal car to be able to be intelligent ough to drive itself as have capable to seven different different things. Model wine, model three year. Look they're good looking cars but look safe, fairly Normal.

You don't expect a very really looking card to I have been touts have enough AI to be all dry though but that does um so we could do want to expose that to more people and uh and so we're doing everything we have aging of an approaching in the software will rather another for a thirty day trial. So to encourage people to try again and and we are seeing a significant improvement and adoption. So the the to take great for city is as improved substantially, especially after the ten ten event.

yet. So there's no need to wait for robot taxi or service cap for to experience for autonomy. We expect to treat that next year with the with existing big cline.

Awards actually pose.

Someone gives a small taste of what this would look like, the cry, but to drive itself to the user within the parking lots, curtly speed limited, but then found a quickly being increased medalia had more than a million usage, thems of response ment.

So um and and we actually we have for text employees in the best area. We already are are already right milling capability. So so you can actually you with with the development APP, you can request a ride and I will take you anywhere and vary.

We do have a safe driver right now, but the software were quite do that. Um we developed and David do a little yet. Sure.

David. Um we showed some screen shots of this in the key one. H share all the deck. And um yes, this is real. We've been testing in for part of the year and the building blocks that we needed order of the build, this functionality and deliberate in production we've been taking about working on for years.

And we just so happen that we've used those building blocks to deliver great features for our customers in the meantime, such as sharing your profile signalizing across cars so that every single car that you jump into, whether it's you know another car, the U L. And start the car that something is long to you or rental hard, you jump into IT looks exactly like years. Everything in chronic ze seatmate positions, you know media navigation, everything is the same.

Just what you would expect from ah one of our robot taxes. Um but you know we gave that functionality to our customers uh right now because we built IT uh intending for IT to be used in the future um released in that functionality now although and cybercafe that we knew we are going to need to deliver that functionality, I M sending an navigation to destination from your phone to the vehicle um and so you know you're doing that now with them the right healing up. But it's something that we've uh made available customers for years seeing the progress on a row in the mobile out that something you'll leave for the right healing up.

But again, we released that in meantime. So so I just starting to think about this up right now while we're building out you know the early stages up a right healing, nowhere we've been thinking about this required long time and we're excited to get functioned out there. Yeah and and we .

do expect to roll out um right healing in um health .

on your taxes next year to the public.

But now the company .

one is somewhere is look quite a long regulatory process process by the shouldn't I I think we should get through next year but but is contented about regulate. We will texas as um like faster. So it's current like um we will definite have available taxes um and probably have a problem and can this and then and maybe some of the state actually next year as well, but at least the cap on your texts.

So i'll be very exciting this really profound change. Castle becomes more than a vehicle and year every very Better company at that point. So um we publish that to you because at your port I would chose one pt for every seven hundred miles of poot that conquest.

The us. Average water crash, roughly every seven hundred gas mile suits currently shopping attended the improvement relative to the U. S.

average. And we continue to expand our air training capacity and to accommodate the needs of O F S D N optimists. Um we are currently not not a training computer constraint.

I would support big comic factors that the the first is actually getting so good that IT takes us a while to actually find a mistakes, and we start getting to where they could take ten thousand miles to. I don't a mistake. It's IT takes a while to actually out which IT is.

Is this is a soccer, but Better than soccer ball a Better and soccer ball b IT actually takes a lot of figure out because neither one of them making mistakes, but what takes take a long time to make mistakes. So it's actually a single with big stomacher ors. How to take us to figure which which, which version is Better, the sort of high cost problem, obviously having IT a different tly.

嗯， is this very helpful for parking? Parking this out? And there was with optimist. We should we short of a ask, improvement in optimist is to extern movement on our top tank and accident a handle bomb, which is twenty two degree's freedom double, which doubled the prior. And for it's extremely human like, and he says much Better attacked us since it's really that I feel confident saying that we have most advanced human order by long shot. And for moreover, the Young company that bully has all of the ingredients story to scale.

You .

write .

robots. Because because that the things that that was about all the couple missing, that they missing the A I brain after missing the body, really scale to very high volume production. So so soon I see some precious your dengue. But what they like that they likely localized A I and the why to to scale volume .

to very high numbers。

As i've set on a few occasions before, I think optimism ultimately be close form.

So as I think as .

a chance of being the most liable product. For the energy business does the extremely well and does this feel the of shady ahead is targeted.

The later um backpack backpack reached to our backpack week h which is now a forty to go one hour a year on right and we have a second battery in shanghai that will h begin with the twenty get what our year on rates um and q one next year so just next quarter um and that that also IT IT won't be long before for shipping a hundred day last year station storage and tell them i'm at and road the title of ring. That will ultimately to grow, I think, to multiple time, one hours for years. IT has to actually in order to have a sustainable energy future.

If you know the time about scale here, you are not really moving the needed. So if we look at our mentally very complicated of last matter point, which I think that is too much detail, they grow to analyze. Sure, you can give us the til the r on class mater plan, but we we should advance one that IT is possible to take all of us to uh a police sustainable energy situation uh using sustainable energy power generation um and boundaries and electric transport.

And there are no fundamental material limitations like there's not some very rare material that, that we don't have enough of on us. We actually have enough for their materials to. Take all of human several tion, make a sustainable.

And even if novation bradly twisted, but just usage, could stupid voices at work. You know but one way to think of the progress of a civilization space of esoteric but is percentage completion of college scale. So college scale one would be you're usage although power of a water planet.

We were were currently less than one person on court check levels, level one that will. Two would be using all the power of the son. And there were three all the part of the galaxy. So we got one way .

to go. Where to go?

When you think in college terms, IT becomes obvious that that the majority ity bigger sources of energy is the sun. Everything else .

is .

in the noise term.

Um so in conclusion.

just that is fox sapling the future of energy transport reMarks in A I and this is a time when others are just focused on managing run near time trends. We think what we're doing, history approach and uh if we execute on our objectives and we will tell my prediction is text will become most viable capital world. I probably by long my long shot. I want to thank to tell us the team once gain for strong execution in a tough Operating environment and really looking ford to both and decorative, exciting picture.

Thank you. great. Thank very much you on and some reMarks.

swell. thanks. Are you positive? And once again, demonstrate was going to which business has evolved over the years is the generation of neck Operating casualties of six point three million.

A water revenue grew both quarter, quarter and year. Year while we had unit while in growth, we did experience reduction in as primarily due to the impact of financing incentives. As a reminder, we are providing this incentives are barely using third party banks and private institution and recognize the cost of these incentives as a different reduction.

To help, we released effort d for cyber truck. Another features like actually smart one like yellow talk work, not like that, which contributed three, twenty six million of revenues in the walking. We continue to see celebrated levels of regional credit sales with the billion of reviews so far this year expand on this at an industry level.

China continues to all perform U. S in the era of fact, three, and if there is something to be learned from that, this gives a signal of what is to come in other regions as cosworth acceptance of vivid goals. And we feel that is the right strategy to build affordable and more clearly leaves a focus remains on growing unit warning while avoiding a build up of an order.

The support this strategy will continue to offer extremely compelling vehicle financing options in every week when you compared any vehicle in a lineup with other royals, believe our vehicles provide much Better value, particularly when you consider the safety features, performance and not unbaLance software. Functionalities, like David also talked about, include also what a show I talked about about autonomy, music options, parental controls and much more. While every vehicle in online that comes of these capabilities, there is an awareness cap notice with buyers at at times even with listing owners, we plan on making these more visible in not intractable with both existing and future customers.

Automatic margins improved quarter or quarter as a result of everyday feature release discussion fall increase in our oral production and delivery winning? Or can you benefit from commodity pricing and more localize deliveries in region which resulted in north present unities? Sustaining these marches in K, F, I will will be chAllenging given the current economic one though, that we are focused on the classroom vehicle and there are numerous work extremes within the company to squeeze out cost without compromising with .

cust experience. Yeah, something that does a helpful hoa, helpful. Metro trend is if this decline in interest rates, this has mass effect on .

the year.

on what modern the varity people is. The ordered is driven by the market market. Can I put music limit? So um make more like you you decline interest rates, which helps with afford tackles.

Yeah I think that is one generally observed in the industry that you know because of the football being impacted because of interesting people are working on to the cars longer, especially in the U. S. And that is still having impact on no long industry.

As we discussed the all year, as we discussed to impact on as energy deployments photo quarter due to costliness location orders in for failed and not necessarily an indicator of the manager production within the quarter. While we did see a decline in q three, we expect to grow deployment sequences in key for to end the year, but more than double of last year energy margins in q three four, the recorded more than thirty percent. This is a function of mixed projects being declared.

Ed in the water, note that there will be fluctuation in margins as we manage through deployments in our in the tory, a pipeline in backlog continued to grow over a quarter as they fail at twenty twenty five production slots, and we are doing our little best to keep up with the demand. Just coming back on automotive margins. H, I talked about to side A, I don't want IT what is happening.

One other things which I want to also share is that we that enough, we will continue to keep whatever we can to school IT, like I said before, about squeeze on the cost. But this is something which we also are very capable of. And in just a few three, we reached on lowest costal vehicle, and that is the time which we won't even focus on then going on the service.

Another, we continue to show improvements and quality. This was a result of Better performance. Vote in ourselves is this which includes collision and part sales and merchandise and continued goal is super judging his field best sales will continue to go as the world of three size increases.

Our Operating expenses declined quarter a quarter in a year on year lesson. This is partially due to the real thing we undertook in cute. Cost saving from these initiatives were partially offset by increase in costs related to earlier efforts.

We have started using the depute ter without of a factory in house in hidden schedule in alone track to get free ticket depuis deployed in texas by end of this month. One thing which i'd like to elaborate is that we're doing very judicious on our air compute spend too, and saying how best we can realize the existing infrastructure before making future investment on the capex. Rt, we had over three and half billion in the quarter.

This was a sequences increase, largely because of business today. I we now expect the capex through the year could be an excessive eleven building. We shared A A vision for the future at the view over event at the million of the month, the tested with hyper focus on the living on that question.

The all efforts are underway to make IT at reality. While we achieve significant progress this year, IT will take time to get this as we finding new and incredibly complex technologies and navigate a fragrant ted regulatory landscape. Future is incredibly bright, and I want to talk that does something. Once again, all .

great. Thank you very much. That up and now will go to your investor questions. The first one is, is tesla still on track, deliver the more affordable model next year, as mentioned by you on earlier? And how does IT a line with your A I got driven.

sure. I mean, as inland by both said, you aren't plan to meet that. The first seth of next year ambition has always been to lower the cost of of the vehicles, to increase doctor energy and transport um product is lowering ospak current fables which is weh all of the personally on vehicles that we sell today come in. But the next stage in that really is IT fits in the A I roman, as when we bring robot taxi by the initial custom of getting into an E Y. And those lets really where we see the marriage of of e map in the.

We like with with with instead of the thirty case kind of a key threshold.

right? Thank very much. Uh, similar a question next, uh, when can we expect tesla to give us the twenty five thousand thousand and on regular taxi regular car model?

But we're not .

making IT on hicks .

today. The futures autonomous. I mean, it's going to be nice actually said this many years ago, but that in my strong life, and I believe that is that you have to be true and very obvious that respect is that the future is the autonomy, ent and three vehicles, and not of time with gasoline vehicles, a huge will be like riding a horse are using a football. It's not that there are divorces yet. There are some posters, but there are usual .

the dish and have such religious .

everything to be electrical tonus. I think this this is blind, like should be Frankly blinding ly obvious at this point. That is future.

So a lot .

of water error companies, most more modern company ties, have worked, not eternally. This, which is surprisingly, because we've chatting from the rotolo for such long time and IT will accurate their departments in the future. But all all of our vehicles in the future, we priority.

Our our capable autonomy and you know currently making on the order thirty by a thousand autonomy. Because a week um prepared say where was entirely ly to list. Then listen thousand cars, five K A week .

cars look Normal yeah the most .

little Normal the cyber ck looks yes, thankfully you know, looks no. And a cap taxi. We wanted to have something futuristic. And I can .

cause like futuristic.

It's worth starting with respective the side of cab. It's not it's especially not just a revolution in vehicle design, but revolution in vehicle manufacturing that was also coming with the with the cyber cap at the a cycle time. Acted the um the out of of the side cabinet IT is like this is just really so special innocence, no view. They have other banks and other car perfection lines like like IT click .

like like .

not .

not in the same league is what I say not in the .

same leak um so so it's .

it's in right and I take several years that maybe the most the hardest has that part company will be the party you have just like bia factory. Conversions near a fact this after my yeah it's .

like know things .

did um but as well so rapidly evolving veteran technology so thank you, man. The direct place that having an a enfant regular twenty five came models pointless yes, I would be silly like we completely at us with what we .

in time this world but matters as well as cost per man yeah efficiency of that vehicle that we done what .

yeah taxi exactly and is is fully consider cost per mile um is what matters. And if you try to .

make car that .

is you know A A hybrid manual for matter cards, it's it's not going to be as good as a dedicated or times car. So ark is he was not going to have still wills and petts. He signed up for .

tone at .

night and cost on the order. Costa, twenty by k so IT is a by k car h and you can you will be ild buy one exclusively if you want. So just what have you will need? IT.

great. Thank very much. Um the next question is, what is tesla doing to livia? Long way times at service.

So we we aim on solving problems at the source. So at the factory before they cannot even affect our customers, we believe the best service is no service.

Yeah, don't even AK don't see .

any with the test shirt you do to fix issue upstream where you motly do through software at work at home court, we part and we address fixed the issue and we partner the field with service to make sure relocate same issues. And additionally, just in q drink k four, this year long, we we have open and will open in total newly sunday locations. And in north america, we significantly expand the size of each location and have double the size last year compared to this year.

Yeah, I think I think it's like actually a lot Better to having a large services because you can you can have specialization labour project move actually like we could have dedicated lines, full particular types of service and you and it's way easier for somebody become expert in a few different types of repairs than in every repair.

exactly. This is helps us with the best of these heavy repairs like caron blanking the dedicated lanes for different type of repairs. And so it's through bit matters and really treating and like a factory.

this yeah this is this is what IT tells the structure. I think the family has a different advances relative to the rest of order industry because we we make the cars and we service the cars, whether this is a bit of a conflict ventures with the the deal model and the deal traditional and the deal model where ideal ships make most their money on service um and so they they don't have the this instance to reduce the service in uh, we're in our case, we are incentive to reduce the service costs because we we Carry that service costs. And we got a good feedback with with our with our .

cars yeah review with the factory, with the service leaders together and send that people from the factories that field and fill the factory to see the first stand suggestions manufacture was questioning .

on design yes. I this as a structural foments structural adage test of .

us .

is the rest the which I just made in diagnosis um sorry, that define and what is to be done to a car for times service, but also automating all the preparation work and aligning of resources that are necessary in order for the didn't be very efficiently work. So I like left.

Schedule, ian, please. And this wrong. In to the .

cost telling directly we're pulling that yeah you .

know most time you don't need dig NER the car when he arrives. The car is like again technology vantage and travel vantage compared to the rest of the water industry is yeah .

I think it's under a date as to what all we are to do and and that's why because like I said before, most of our cars accept cyber drug love to say yes. So people don't realize that IT has so much beauty yeah yeah.

yeah yeah. But Better the cause, but they don't like obviously like super futuristic.

Yes, great IT very much. The next .

question is please providing update on the semi at what will the next state of growth look clock and when more if I did you ready?

sure. So as you we posted in earning that, we're dressing so something on the build of this in my factor, uh, in our in fact, we know we've released the army major capos manager ers for that program. And we're on track to start uh, hilo builds in second iphone next year with production starting the first half twenty twenty six and rent really throughout the year to full production. Um so you know growth will have to depend on our customer adoption .

of the product. Well, I don't think .

to be divided limited, which is really a commodity of total cost.

Yes, exactly. It's it's what kind of ridiculous demand for the same I um .

in that where it's about how much do I spend to. It's yeah fundamental .

if if you've got a some work but fully consider the cost for my for ton of transport is Better than dial truck h any company that doesn't adopt your electric. So I will lose. It's not a it's it's not a subjective thing. It's like of whether do you like this post to have a beautiful smile. But IT, Frankly, if you made an oki try.

what and this is proving so in athletes in in pepi, in a partner in fact, the the pepi actually last week and nobody, their drivers don't only go back there.

Yeah, I think you give anyone the electric M. I. It's it's like the that's like the choice is yeah, yeah, yeah that's like, like, so like the more thing like they are top drivers, they get to drive to the someone is the thing they want to dry.

It's it's super fun to drive. It's also very easy to track. It's it's easy to drive. And I was us and it's like fast well, but I mean, like like not like this. Like you really like the videos of work, like like electrics. So I like you know can go up as like the this truck, this case in cars um so like it's responsive IT is you you you know you floor and the the truck and that's a enfin for the driver and for .

the goods but also for safety in terms of other drivers on the road you want to stop behind the line you not like ah in the slowdown situation and on and I know how that plays into you know F S D, which is the second part of the question. All of this I have been since the couple hundred of deployed already in in the ones will be building next year and job hello of the cover in the cameras necessary to to uh deploy offer and work currently training with that small that we have and think is the fly is trained in the area that up no, you get investing to that I form .

yeah you don't be a mass improvement in a driver fatigue know uh and driver safety. We got some of the anti jack like thing software uh with you know you have to work about your breaks over heating if you go down down a steep hill because we we use .

that energy goes back for pack um actually .

when we leave in and it's just like it's it's like radially Better than than A D so many. So what what the drivers love IT.

I think very much. Our next question is when will teslin incorporate eggs and grog in all the tesla vehicles?

I mean that these are relatively small right things um but yeah the I think .

um we will keep this spying.

you know what what is available on the car on on the screen and also improving like the Brown or so, like just generally can access anything you want in the car. In fact, for the in our where you get to full autonomy, you actually want only a assistant that is a you can do anything like if you want to brace internet if you want to. You know, ask ask A I questions.

If you want to watch a movie, if you want to play video game, you want to have some positivity thing, you can do anything you want and autonomous think because you don't need to drive. So as well as cat got a nice beam and a great sound system so you can watch IT what you very moving with. It's like going like a person personal theory um yeah this is .

why we've been building this functionality .

at IT gaming .

to the car uh at these also two different media cases of the car because you know um because that's what you're going on that yeah the cards of build today.

that's games. We haven't tried IT this like uh castle doing bad and we had a bunch really found game in the .

car we're costing. Looking at you what features that pay attention to what's most moly .

the by customers? Yeah, they can will be back you want.

great. Uh thank you guys very much. But the next question is um elon mentioned unsupervised fd california taxes next year designing regulations have agreed to IT in the entire state for existing hardwork three and .

four equals uh no I was as I said earlier, california love regulation.

They yes.

I think there's a path of obvious ly way more Operations in alpinist so that just a lot of bones but out a lot of approvals that are required. Um I may I be shocked if we don't get approve next year, but it's it's just not we control um but I think we will get approve next year in kalpa nia taxes and and imports in the year I will branch up be but beyond ccf formia taxes.

I think it's important to be right this like come more universities anting a vehicle federal level in the U S. Is done by needing F V S S. Regulations on in vehicles today that is capable, meet all those regulations, the cycle of the graduations.

And so the deployment of the vehicle to show is limitation. What is the limitation? Is what you said stay level where they control autonation, put appointed TTS something to out to be easier as much for texas.

Yeah it's other one have like for you take a little longer. Everyone didn't set up anything yet. And so we will work day by day. I I do think .

we should have a central um I agree like the auto should be approved, should be impossible to al process for automated vehicles means that's how B S S is federal of federal.

Yeah so I mean, in twenty regulators are looking at the country stalled, son, but we would appreciate in out that .

really need me now at like a national rival is important about government efficiency. Try to help make that problem and you do for everyone, not just tell but uh are just like like some something U S. Are state by state regulated like for example, insurance and it's like IT takes incredibly able to do state by state fifty states um and and any question that this should be a national the proper process for autonomy.

Guess the next question is, uh, what is the plan for twenty twenty five?

I just talk yes.

I basic talked this a lot going on. Don't only mention that were working on cheaper models to come out work with the team is doing to get something ready.

works by to make a lower class car is insanely high. But like IT is harder to get, like twin set of the cost out of a car than IT is to design the car and build entire factor in the first place. It's like exclusive and and and it's it's a lot of movies made about the the heroes who got twenty percent of cost of a car and tell you that should be was little change. Like.

yeah, it's like this should .

be you the heroes of twenty percent cost out of the cars like, dam and respect, it's like you, I think you only could make a compelling movie, but I IT just not know IT like if you actually so harder, if you actually so harder was to do that, you like, wow, that's there are harder.

Just yesterday were talking about party.

Yeah, I only like literally I mean, even if this there's a lot of when I do go, so like getting cost of things kind of like it's like game penny, so like get throws, but pennies first proxy ation if you got ten thousand of um in a car prior approximation and each some cast four dollars and you have a forty thousand million car. So if you want make a you know a thirty five thousand car, if you want to get fifty cents on average out of the ten thousand lines every every part yeah it's like yeah and then you also the best is you delete some parts in that parts.

Um so i'm not .

very excited about the the service cap design and and the but you know how how rethinking the design of a car for the super cap design IT will also have any production and then design machine that posts the machine that that I think also a revolutionary and it's just but there's no the court company that even trying to do what we doing like i'd even heard of could actually in fact i'm certain the recent one like like like i'm I think this is still a new machine I force machine like it's said but IT enhance inherent elected IT would decide be like I have five five .

times Better .

to think traditional .

factory like psychotic syco time .

and like heart .

to this and change I don't think .

any car company has the same level of like immigration of thought that we have when IT comes to like when you design apart from the light newspaper, who is going to make IT or is going to be made, how is going to be shipped, has going to be assembled into the vehicle among at any one point of something is done in a side. Now IT becomes a booming of either cost or time of what efficiency, but with with the roman taxi, the development, like with job combining all that and then like blowing up points made and saying, if we made this way and rethinking and also the most efficient factory possible, that shows that will cap efficiency and that will we delay IT chosen in the reports chosen sympathy and vehicle but also help performs and in terms of like end .

user um said yeah just to close up just on the energy from also and the place we will have started in fashion at the manufacture um we continue to increase our local departments fit for all three. We plan to continue expanding our supercharged ing net, getting more reliance on our network. Six, sixty and seven, as you want to talk about that would keep going. And then if there's a also would have a literary finally starting to party. So so there's a lock which is going welcome.

Yeah so many things yeah I great like crazy thing is like tesla winning basically on almost every single thing we're doing. Um if you're not working now where to find one in a witness with the tire, large companies that that's the only thing they do.

yes. I mean it's it's a company, multiple companies .

within the top yeah tell us like make .

up with one as you guys. Um just few more what is going on the tester roxy.

some things. Well, I just like to think along suffering um deposit holders of the tesla rooter um reason has to come out yet because IT is this really is not that not just the icon is the Cherry on the cake.

And so um you know our our our larger mission is is to exhort the progress towards a sustainable energy future um you know trying to do things that max ize the probably the future is good for for human birth um and um and so that necessary means that like the things like that I can like desert, like we love to work on the teezle rose IT is super fun and and we are working but but he has to come behind them the more the things that have a more serious impact on the good of the world um so just thank you all at like suffering uh tester deposit holders um and and we are actually finding the progress on that um and we're close to finding the design. It's really gonna be on the spectacular. You know everyone Peter .

til you .

know people like a Peter til I we're really good friends. The Peter you know was limiting uh how you know the future doesn't have flying cars what will say have great at think very much um the next one is quick .

summer to other question has but we combine IT with with the final question so briefly. Could you just uh detail uh, how robot taxi will allowed start with the test of the play fleet and then allow customers and we try to add there's on the excursion model and if harder, three capable a little five school.

Is going the harvard three. What we saw as well or five was IT was easier to make black progress with starting with harvard four, the feeling on the solution in the backboard IT to hardware tree instead of directly king on hardware tree given that harvard for us uh more fundamental hardware capabilities. Uh I think the train will continue uh into the next few quarter's uh as well. Very first figured solution rapidly with um E I four and then backwards try the corners just takes longer to there are those things because it's not pronounces support in the hardware and it's emulated. Um but yeah is initially working on hard for backboards IT two hundred .

three yeah once access were not we're not habent sure but um but but as as a short machine um because but by some as poor for has has really as self time the capability of part three is is easier to to get things to work with power ball um and then um IT takes A A lot of effort to sort sweet that boxing ality .

into hard with three um and if there is some .

chance the hundred three is does not achieve the safety level that um allows for unsupervised F S D um you know there is some chance of that um and and if if that turns out to be the case um we will upgrade those who bought hard work free ever seen for free and we have designed system to be affordable IT. So as well as really what I just try to search out the computer thing, the camera, the cameras are yeah there are capable but um we don't we don't actually know the ask is that but if that does turn out, we will take make sure take care of those who university on politely .

right in the last few minutes that we have left, we will try to get in some analyst questions. The first question will be coming from a peer fergan at new street and pear. Please feel free to need.

Thanks od guys, for taking my question. Um I was wondering a about like the computer um you rumped up so you give like interesting statistics on how much you have and you say you you don't feel your computer constraint and I was wondering you know how you are putting to work this additional compute.

Is that a game for you of creating like longer and large of murders, like next generation of murders that are long way opening? I go from GPT three to GPT four. Or is that more like your set on your and you need to throw more and more computer to accelerate the base of learning to to improve?

Um really, really um and then I had a quick photo, very quick on your really texas and in california next year. The plan, as you see today, easy to rule like a little too um with a cow that we start with like a shop is a year uh like like some on both to be vision someone a sitting at the wheel just in gaze and removing this super advisors professions. Ly, are you aiming for going a free flesh without even a human susuki vision when you get started?

If why I just regard to out of, and that the first bad person did the nature of real world A I is different from C L M in that, uh, you you have a massive amount of context so that like the I did you you've got the case to tells the separate cameras that you night but to night if you could ve in tell camera that um that that you will give but take up with some context and and that that is then to still down into a small number of control outputs um you know whether it's it's like you actually sport have in fact I not sure any IT I am about to gag about context um .

and and then you ve .

got you got to the process that in the car with a very small amount of computer. Um so .

um it's it's a it's .

all doable and is happening, but IT is a different problem. Then then then what's say a germany .

opening a is doing .

and now all way you can make up for the fact that the in first computer is quite small is is by spending a lot of effort .

on training.

And just like, just like a human, like give, the more you train out something.

the less but the less .

mental work like IT takes when you try IT, when you, when you do IT like when the the first time, like a human just driving, IT absorbs at your take your whole mind. But then what as you train more moral driving get very good and you the driving or becomes a background task. IT doesn't IT only observes a small, not your mental capacity because you're a lot of trading.

So we can make up for the fact that the inference computer is um it's it's it's tiny compared to attend kilo about bank of g views because you got you ve got a few hundred what um of the first build we can make up that what's heavy training. So and so at the government is also vast month that did the actual in a petabytes of data coming. And sorry, out what training is important with of the vast melt video training, the coming feed, what is actually most import for training that's just going difficult. But that as I said, we're not currently training computer one number. Yes, I commented the .

training has more in large models, also a train quicker um but in the end we extracted to pick which models are performing Better. So the validation effort to picking the models because the municipal intervention is um pretty large. We try a lot of miles long and close to we do have simulation in other ways to get those metrics, those to help, but that's big like. Yes, that's why we're not trying computer constrain alone. And the southern is of skating as well as the data figuring our best as more useful that that is .

an important .

testing boxing on that.

yeah. So is a released the second party. Your question here about safety drivers and rolling IT out each day has different requirements in terms of how many miles and how much time you need to have a safety driver and not have a safety drive. Follow all those not regulation without there with safety as a priority, but they will obviously, when we're ready in sixty is there will over the more direction from from the right.

yeah. I mean, I guess I we we think that will be able able to have traveler's tests during paid rights next year, sometime next year. I really thank you.

Next question comes from adam journeys at Morgan stanly. Adam, please feel free to on the g yourself.

Okay, thanks, everybody. Just had a question about the relationship between tesla and x ai. Many investors are still not clear how to work at X A, I, S is truly beneficial to tesla.

Some even take the view that the two companies may even be in competition with each other in terms of talent and tech and even your time, the law. So what's your message to investors on that relationship between tesla X A I? And where do you see IT going over time? bax?

Well, I should say that your X I has been helpful to tesla AI you quite a few times in terms of good things like scaling up about IT, like training. You are just even by recently in last week or so, the province of power training, there were you you do big training one and the a note fails. Be able to take your training and and easily recover from our training when the exercise pretty helpful. So um but but .

there aren't .

different pounds。 The access is working on artificial general intelligence or official super intelligence, tells us trying to autonomous cars and tomas robots.

the .

different. But so.

Yeah I mean, I think we've .

said this before also like not all he is eating like and there's there is a broad spector yeah and we have our old swiming yes, there are certain things which we can collaborate if needed, but for the most part were slogger different dies.

The test text works on real world day on. And I just think IT IT is quite a IT different from alan is .

you have you .

have master contacts in one video and and somebody what you that's going be installed, but like with extremely efficient .

ate .

paris computer, I think tears us the most sufficient up in the world terms of adverse computer. Like because unnecessary, we have to, we have to be very good at in in first, efficiently parents, we can for ten ten kilos of G P S. In the car, we've got a couple other ones and IT appear it's pretty well designed. Tesla, a item. But I woke up on her once.

but get order .

from problems. Many in the like police. The stuff that exact is like, what when is running in parents and me? IT is running inference. I like answered questions, answering test questions on on a ten kilo what rank it's like put down the car now please. No no .

actually um so .

you know X I because because I thought there wasn't there wasn't a truth seeking the little superhero company. Other like that one came down that we are need to be a cruise ket like like A T and A A I company that is very really .

well um makes me fall it's .

I not say exact is perfect, but that is worth that is this the exposed expiration even if something is very politely great, so be preval I think is very import for A I safety. So and I think I will that has been helpful to tesla and will continue to be help the tesla. But there are very different problems. great. I think you like like what is like what one of the car company has a, has a whole class trip design .

like zero.

What are the car company is world class A I T, my casters serve as wall starts the greater scratch.

great. Thank you a lot. Um and I think that's unfortunately all the time do you have for today and we appreciate all your questions and look for eating score, take very much to buy.

Hey, thank you so much for listening today. I really do appreciate your support. We can take a second and hit this subscribe or the follow about non whatever podcast platform delisting right now. I greatly appreciated to help out the show traumatically ly, and you'll never miss an episode, and each episode is about ten minutes or less to get you caught up quickly. And please, if you want to support the show even more, go to petron dot com slash stage zero and please take care of yourselves at each other and i'll see you tomorrow.