Tesla, Inc.

Good afternoon, everyone, and welcome to Tesla's first quarter 2026 Q&A webcast. My name is Travis Axelrod, Head of Investor Relations, and I'm joined today by Elon Musk, Vibhav Taneja, 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. Before we jump into Q&A, Elon has some opening remarks. Elon?

Thank you. I think we've got a very exciting year ahead of us with 2026. We're going to be substantially increasing our investments in the future, so you should expect to see a very significant increase in capital expenditures, but I think well justified for a substantially increased future revenue stream. And obviously, Tesla's not alone in this. I think you've seen the most, if not all, certainly the major technology companies, substantially increasing their capital investments. And we're going to be doing the same. I think it's going to pay off in a very big way. So we're investing in and improving our core technologies, battery powertrain, AI software, AI training, chip design, manufacturing, laying the groundwork for significantly increased manufacturing production. We are also strengthening our supply chain across the board, batteries, energy, and everything. And laying the groundwork, like I said, for what we expect to be a significant increase in vehicle production in the future. And of course, a very significant increase, well, actually releasing Optimus, but increasing our internal production for testing, and then probably being able to have Optimus be useful outside of Tesla sometime next year. As you've heard me say a few times, I think Optimus will be our biggest product not just Tesla's biggest product ever, but probably the biggest product ever. Um, and, uh, and I remain convinced of that conclusion. Um, so, uh, on our vehicle side, it's always, I think worth noting that Tesla car is incredibly incredible, incredible value for money. And they're, they're all autonomy ready, depending on what, uh, uh, part of the world you're in the supervised full self-driving is getting extremely good we have just started production of cyber cab and we'll begin production of our semi truck soon now I should say whenever you have a new product with with a completely new supply chain new everything it's always a stretched out S curve so you should expect that initial production of cyber cab and semi will be very slow, but then ramping up and going kind of exponential towards the end of the year and certainly next year. And in fact, we'll be ramping up production of all vehicles and all factories to the best of our ability through the balance of this year. On the energy front, the United States and the whole world will need a lot of energy storage to meet growing electricity demand. Demand for our Megapack is very strong, and we're excited to begin production of Megapack 3 later this year in our new world-class factory outside Houston. For full self-driving and Robotaxi, version 14.3 was a major architectural update, and we have a whole pipeline of major improvements to full self-driving that that we believe will lead to unsupervised full self-driving being available anywhere in the world that it is legal to do so. And then there's a version 15, hopefully by the end of this year, but certainly by early next year. And that will be a complete overhaul of the software architecture. and we'll run on AI4. At that point, we're really just increasing the safety level of FSD above human safety level even more, meaning I think even within version 14, we're significantly safer than human, but v15 will take that to another level. We've expanded Robotaxi to Dallas and Houston using the same software source in the Bay Area. And the limiting factor for expansion is really rigorous validation, making sure things are completely safe. We don't want to have a single accident or injury with the expansion of Robotaxi. And we have, to the credit of the team, not had a single one to date. And Optimus, we're preparing Fremont for start of production later this year with Optimus. Again, totally new supply chain, totally new technology. So therefore, the production S-curve is always very slow in the beginning. But we'll ramp up to significant numbers next year. And we're constructing a second Optimus factory at our Giga Texas location. And that will probably start production around summer next year. The V3 Optimus design is almost ready to demonstrate. I think we want to just make sure it's polished. It works functionally, but there's some aesthetic elements that need to be finalized. And I think probably middle of this year, we should be able to... show it off. We're also a little hesitant to show v3 off because we find our competitors do a frame-by-frame analysis whenever we release something and copy everything they possibly can. So I think there's some value to not showing new technology until it's close to production. Congratulations again to the Tesla AI chip team for taping out AI5. That's going to be a great chip. I think probably the best AI inference chip for edge compute that exists. And certainly, I think unequivocally the best value for money. Team did a great job. And we already have a lot of momentum for designing AI6. And we've begun to discuss ideas for Dojo 3. So this is all very exciting. We've also finalized plans for the research chip fab on the Giga Texas campus. And we'll start construction of that this year. In conclusion, Tesla is working on a lot of large, ambitious projects. They're all very challenging, but I think they're going to be revolutionary. And this is what the team does best, solve the hardest problems and build amazing products. And I'd like to thank the Tesla team for all their hard work, and thank you to all of our supporters.

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