Tesla, Inc.

Good afternoon, everyone, and welcome to Tesla's third quarter 2025 Q&A webcast. My name is Travis Axelrod, head of investor relations, and I'm joined today by Elon Musk, Vebav Taneja, and a number of other executives. Our Q3 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. We urge shareholders to read our definitive proxy statement, which contains important information about the matters we voted on at the 2025 Annual Meeting. 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. Before we jump into Q&A, Elon has some opening remarks. Elon?

Thank you. We're at a critical inflection point for Tesla and our strategy going forward as we bring AI into the real world. I think it's important to emphasize that Tesla really is the leader in real world AI. No one can do what we can do with real world AI. I have pretty good insight into AI in general, I think that Tesla has the highest intelligence density of any AI out there in the car. And that is only going to get better. And really just at the beginning of scaling quite massively, full self-driving and robo-taxi and fundamentally changing the nature of transport. I think people just don't quite appreciate the degree to which this will take off. Honestly, it's going to be like a shockwave. because the cars are all out there there are millions of cars out there that with a software update become full self-driving cars and we're making a couple million a year and in fact with the advent of with with what we see now as as a clarity on achieving full self-driving unsupervised full self-driving i should say um i feel confident in expanding tesla's production um so that is that is our intent to expand uh as quickly as we can uh our future production um so i was i was ready to do that until we had clarity on on uh achieving uh unsupervised full self-driving. But at this point, I feel like we've got clarity, and it makes sense to expand production as fast as we reasonably can. We're also making huge impact on the energy sector with battery storage. So with both the Powerwall and especially with the Megapack, we are dramatically improving the ability to generate more energy from the grid. Let me sort of talk a little bit about that, which is, if you look at total US energy capability, for example, there's roughly a terawatt of continuous power available in the US, but the average usage over a 24-hour cycle is only half a terawatt because of the Big difference between day and night usage. If you buffer the energy with batteries, you can effectively double the energy output of the United States just with batteries building no incremental power plants. And it's very difficult to build power plants. So they take a long time. There's a lot of permitting. And it's not an industry that's used to moving fast. So we see the potential there for Tesla battery packs to... greatly improve the energy output per year for any given grid, US or otherwise. We're also on the cusp of something really tremendous with Optimus, which I think is likely to be or has potential to be the biggest product of all time. And it's a difficult project. And it's worth noting that it's not like it's just automatic. I'm unaware of any robot program by Ford or GM or, you know, by US sort of car companies. People like, I think, maybe think of Tesla as a car company. We mostly make cars and battery packs. But it's not just like an obvious fall off a log thing to make Optimus, but we do have the ingredients. of real world ai and exceptional electrical mechanical engineering capabilities and the ability to scale production which i don't think anyone else has all of those ingredients um so uh yeah with with version 14 of the uh of self-driving which people you can see the reactions of people online. They're quite amazed. Actually, anyone in the U.S. can get version 14 if they just go and select, I want the advanced software in their car. So if you're listening right now and you'd like to try it out, just go in settings and say, I want the advanced software, and you will get version 14. And yeah, so on the mega pack front we we unveiled mega block mega pack three um we also have exciting plans for mega pack four mega pack four will incorporate a lot of the um a lot of what is normally in a substation uh and be able to output uh at uh probably 35 kilovolts uh directly so this this greatly improves our ability to deploy Megapack because it's not dependent on building a substation of 335 kV for Megapack 4. So that'll be next. That's the engineering priority for Megapack. And we look forward to unveiling Optimus V3, probably in Q1. I think it'll be ready for... to show off, and that I think is going to be quite remarkable. It won't even seem like a robot. It'll seem like a person in a robot suit, which is kind of how we started off with Optimus. But it'll seem so real that you'll need to poke it, I think, to believe that it's actually a robot. And obviously, the real world intelligence we've developed for the car, most of that transfers to Optimus. So it's a very good starting point. In conclusion, we're excited about the updated mission of Tesla, which is sustainable abundance. So going beyond sustainable energy to say sustainable abundance is the mission, where We believe with Optimus and self-driving that you can actually create a world where there is no poverty, where everyone has access to the finest medical care. Optimus will be an incredible surgeon, for example. And imagine if everyone had access to an incredible surgeon. Of course, we need to make sure Optimus is safe and everything, but I do think we're headed for a world of sustainable abundance, and I'm excited to work with the Tesla team to make that happen.

Great. Thank you very much, Elon. Vebab also has some opening remarks.