Tesla, Inc.

My name is Martin Vieka, VP of Investor Relations, and I'm joined today by Elon Musk, Vaibhav Dhanesha, 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 and 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? Thanks, Martin. So to recap, in Q1, we navigated several unforeseen challenges as well as the ramp for the updated Model 3 in Fremont. There was, as people have seen, the EV adoption rate globally is under pressure and a lot of other water manufacturers are pulling back on EVs and pursuing plug-in hybrids instead. We believe this is not the right strategy and electric vehicles will ultimately dominate the market. Despite these challenges, the Tesla team did a great job executing in a tough environment, and energy storage deployments, the Megapack in particular, reached an all-time high in Q1, leading to record profitability for the energy business. And that looks likely to continue to increase in the quarters and years ahead. It will increase. We actually know that it will. So significantly faster than the car business, as we expected. We also continue to expand our AI training capacity in Q1 more than doubling our training compute sequentially. In terms of the new product roadmap, there's been a lot of talk about our upcoming vehicle line in the past several weeks. We've updated our future vehicle lineup to accelerate the launch of new models ahead of previously mentioned start of production in the second half of 2025. So we expect it to be more like the early 2025, if not late this year. These new vehicles, including more affordable models, will use aspects of the next generation platform as well as aspects of our current platforms and will be able to be produced on the same manufacturing lines as our current vehicle lineup. So it's not contingent on any new factory or massive new production line. It'll be made on our current production lines much more efficiently. And we think this should allow us to get to over 3 million vehicles of capacity when realized to the full extent. Regarding FSD version 12, which is the pure AI-based self-driving, if you haven't experienced this, I strongly urge you to try it out. It's profound. And the rate of improvement is rapid. So we've now turned that on for all cars with the cameras and inference computer and everything from hardware three on in North America. So it's been pushed out to around 1.8 million vehicles. And we're seeing about half of people use it so far. And that percentage is increasing with each passing week. So we now have over 300 billion miles that have been driven with FSD V12. Since the launch of supervised full self-driving, it's become very clear that the vision-based approach with end-to-end neural networks is the right solution for scalable autonomy. It's really how humans drive. Our entire road network is designed for biological neural nets and eyes. So naturally, cameras and digital neural nets are the solution to our current road system. To make it more accessible, we've reduced the subscription price to $99 a month, so it's easy to try out. And as we've announced, we'll be showcasing our purpose-built robot taxi or cyber cab in August. Yeah. Regarding AI compute, Over the past few months, we've been actively working on expanding Tesla's core AI infrastructure. For a while there, we were training constrained in our progress. We are, at this point, no longer training constrained, and so we're making rapid progress. We've installed and commissioned, meaning they're actually working, 35,000 H100 computers or GPUs. GPU is the wrong word. They need a new word. I always feel like a wince when I say GPU, because GPU stands for graphics, and it doesn't do graphics. But anyway, roughly 35,000 H100s are active, and we expect that to be probably 85,000 or thereabouts by the end of this year. And training, just for training. We are making sure that we're being as efficient as possible in our training. It's not just about the number of H100s, but how efficiently they're used. So in conclusion, we're super excited about our autonomy roadmap. I think it should be obvious to anyone who's driving a version 12 in a Tesla that is only a matter of time before we exceed the reliability of humans and not much time at that. And we're really headed for an electric vehicle, an autonomous future. And I'll go back to something I said several years ago, that in the future, gasoline cars that are not autonomous will be like riding a horse and using a flip phone. And that will become very obvious in hindsight. We continue to make the necessary investments that will drive growth and profits for Tesla in the future. And I wanted to thank the Tesla team for incredible execution during this period and look forward to everything that we have planned ahead. Thanks.

Thank you very much. And Aviv, after some comments as well.