Tesla, Inc.

Good afternoon, everyone, and welcome to Tesla's first quarter 2023 Q&A webcast. My name is Martin Vieja, VP of Investor Relations, and I'm joined today by Elon Musk, Zachary Kirkhorn, and a number of other executives. Our Q1 results were announced at about 3 p.m. Central Time in the update deck we published at the same link as this webcast. During this call, we will discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in our most recent filings with the SEC. During the question and answer portion of today's call, please limit yourself to one question and one follow-up. Please use the raise hand button to join the question queue. But before we jump into Q&A, Elon has some opening remarks. Elon?

Thank you, Martin. So just a Q1 recap. Model Y became the best-selling vehicle of any kind in Europe and the best-selling non-pickup vehicle in the United States. And this is in spite of a lot of challenges in production and delivery, so it's a huge credit to the Tesla team for achieving these great results. It is worth pointing out that the current macro environment remains uncertain. I don't think I'm telling anyone anything people don't already know. especially with large purchases such as cars. And while we reduced prices considerably in early Q1, it's worth noting that our operating margin remains among the best in the industry. We've taken a view that pushing for higher volumes and a larger fleet is the right choice here versus a lower volume and higher margin. However, we expect our vehicles over time will be able to generate significant profit through So we do believe we're like laying the groundwork here, and then it's better to ship a large number of cars at a lower margin and subsequently harvest that margin in the future as we perfect autonomy. This is an extremely important point. Let's see, regarding the Cybertruck, we continue to build alpha versions of the Cybertruck on our pilot line. for testing purposes, it's a great product. And we're completing the installation of the volume production line at Giga Texas. And we're anticipating having a delivery event, a great delivery event, probably in Q3. As with all new products, it'll follow an S-curve of You know, so production stops out slow and then accelerates. So the cyber trucks are no different. So it's, you know, there's tremendous amount of demand for the product, obviously. It is, in my view, a fantastic product, a Hall of Famer. But as with all new products, it takes time to get the manufacturing line going, and this is really a very radical product. It's not made in the way that other cars are made. So let's see, with regard to Megapack, we're making great progress. Our energy storage deployment reached nearly four gigawatt hours in Q1. It's by far the strongest quarter ever. And this growth was achieved thanks to the ongoing ramp at our megafactory in Lathrop, California. There's still some way to go to reach the full run rate of 40 gigawatt hours per year. And then we additionally announced the start of a new mega factory in Shanghai. So we were, as we've expected, the stationary storage growth actually will significantly exceed the vehicle growth. Regarding autopilot and full self-driving, we've now crossed over 150 million miles driven by full self-driving beta, and this number is growing exponentially. I mean, this is a data advantage that really no one else has. Those who understand AI will understand the importance of data, of training data, and how fundamental that is to achieving an incredible outcome. So, yeah. So we're also very focused on improving on neural net training capabilities, as is one of the main limiting factors of achieving full autonomy. So we're continuing to simultaneously make significant purchases of NVIDIA GPUs and also putting a lot of effort into Dojo, which we believe has the potential for an order of magnitude improvement in the cost of training. And Dojo also has the potential to become a sellable service that we would offer to other companies in the same way that Amazon Web Services offers web services, even though it started out as a bookstore. So I really think that, yeah, the Dojo potential is very significant. In conclusion, we're taking a view that we want to keep making and selling as many cars as we can. Despite this being an uncertain macro environment, this is a good time to increase our lead further and we'll continue to invest in growth as fast as possible. Once again, I'd like to give a huge thanks to Altas employees worldwide for doing an incredible job again. And, yeah, super appreciate it.

Thank you very much. And Zach has some remarks as well.