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Tesla (NASDAQ: TSLA)
Q3 2024 Earnings Call
Oct 23, 2024, 5:30 p.m. ET
Highlights from Tesla’s Q3 2024 Earnings Call
- Opening Remarks
- Q&A Session
- Participants in the Call
Opening Remarks by Tesla’s Investor Relations Head
Travis Axelrod — Head of Investor Relations
Good afternoon, everyone, and welcome to Tesla’s third-quarter 2024 Q&A webcast. I’m Travis Axelrod, head of investor relations, and I’m joined by Elon Musk, Vaibhav Taneja, and several other executives. We shared our Q3 results at around 3:00 p.m. Central Time in an update published at the same link as this webcast.
During this call, we will discuss our business outlook and make forward-looking statements based on our current predictions. However, actual results may differ significantly due to various risks and uncertainties, including those listed in our recent SEC filings. In the Q&A segment, we kindly request that each participant asks one question with a single follow-up.
Tesla’s Progress and Future Outlook
Before we move on to questions, I’ll hand it over to Elon for his remarks.
Elon Reeve Musk — Chief Executive Officer
Thank you. As many of you have noticed, while the industry faced year-over-year declines in order volumes, Tesla achieved record delivery numbers this quarter. Notably, it appears that no electric vehicle (EV) company worldwide is currently profitable, while Tesla continues to show solid profitability amid a difficult automotive market. This quarter marks our highest Q3 performance, and we just produced our seventh million vehicle yesterday—a remarkable achievement made possible by our teams’ hard work.
The energy storage segment is also thriving, particularly with strong demand for our Megapack and Powerwall products. On October 10, we presented a vision for an autonomous future, showcasing the capabilities of our technology. We operated 50 autonomous vehicles throughout the night, providing safe transportation with no incidents.
Looking ahead, we remain committed to launching our affordable vehicle models in the first half of 2025. I expect that we could see a 20% to 30% increase in vehicle sales next year barring major external events, such as significant geopolitical tensions or drastic interest rate hikes. Cybercab production is on track for volume production by 2026, aiming for at least 2 million units annually, with the potential to reach 4 million units long-term.
As for our 4680 cells, we’re approaching a point where they will be the most competitive battery cells available, leading in cost per kilowatt hour in the U.S. while still working with various suppliers to meet our increasing demand for vehicle and stationary storage production.
We’re continuing to see significant improvements in our autonomy technology with each new software version release, leading to fewer required interventions during driving. The recent updates and the upcoming release of version 13 for Full Self-Driving (FSD) promise further enhancements to our capabilities.
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Tesla’s Ambitious Road to Full Autonomy: Major Improvements Looming
Internal Expectations Show Significant Progress for FSD by Mid-2024
During a recent discussion, Tesla executives shared insights on the progress of the Full Self-Driving (FSD) technology. The company reported substantial advancements in miles driven between necessary interventions compared to the current figure of 12.5 miles. Looking ahead to the upcoming year, executives forecast improvements that may be at least three orders of magnitude, indicating a dramatic trend that they believe will carry into next year.
Ashok Elluswamy — Director, Autopilot Software
We have already achieved a 100x improvement with version 12.5 since the beginning of the year. With the upcoming release of version 13, we anticipate reaching a 1,000x improvement from January 2023. This progress stems from key technology enhancements, including end-to-end development and higher frame rates, supplemented by Hardware 4’s advanced capabilities.
By the second quarter of next year, we expect to surpass averages for critical interventions per miles driven.
Elon Reeve Musk — Chief Executive Officer and Product Architect
This is simply our internal estimate. We are not holding back in any way. Our expectation is that by Q2 of next year, FSD will be safer than human drivers, followed by rapid improvements. Many people don’t realize that Tesla vehicles, especially the Model 3 and Model Y, are equipped with the intelligence to drive autonomously. While the Cybertruck and Cybercab look distinctive, the Model 3 and Y appear as typical cars, which makes their advanced capabilities unexpected.
We want to showcase this technology to more individuals. Each time we implement a significant software update, we will launch a 30-day trial to encourage user engagement. Our efforts are paying off, as we have seen a notable rise in FSD adoption, particularly after our event on October 10. Importantly, there’s no need to wait for the robotaxi to experience full autonomy; we expect to achieve this with our existing vehicle lineup next year.
Ashok Elluswamy — Director, Autopilot Software
I’d like to highlight a feature that offers users a preview of self-driving capabilities within private parking areas. Currently limited in speed, we plan to increase this capacity soon. To date, we have recorded over 1 billion uses of the Smart Summon feature.
Elon Reeve Musk — Chief Executive Officer and Product Architect
For Tesla employees in the Bay Area, we are already providing ride-hailing capabilities through a development app, allowing requests for rides throughout the area, albeit with a safety driver present for now. David, would you like to expand on that?
David Lau — Vice President, Software Engineering
Certainly. We have been testing this functionality throughout the year, using foundational building blocks we’ve developed over many years. We’ve adapted these components to roll out features for customers, such as syncing profiles across vehicles, ensuring a consistent experience regardless of the car being used. All critical features, including cybersecurity and navigation integration, have been designed to facilitate this rollout.
We’ve been actively working on these initiatives for quite a while, and we are thrilled to finally make these capabilities available to users.
Elon Reeve Musk — Chief Executive Officer and Product Architect
We anticipate rolling out public ride-hailing services in California and Texas next year, subject to regulatory approval. While California’s approval timeline may be lengthy, Texas presents a faster path, and we are confident in launching there, potentially followed by other states.
Publishing our Q3 vehicle safety report revealed that our vehicles operate at one crash for every 7 million miles while using autopilot, sharply contrasting with the U.S. average of one crash per approximately 700,000 miles—a tenfold safety improvement upon current averages.
As we enhance our AI training capacity for FSD and Optimus, one limitation we face is determining the most effective software version. With improvements occurring so rapidly, it can take 10,000 miles to identify performance differences among software versions, which rather uniquely complicates our testing processes. Fortunately, our drone fleet proves beneficial in this overarching effort.
Finally, we showcased notable advancements in the Optimus humanoid robot, revealing a next-gen hand with 22 degrees of freedom—double that of previous versions—enhancing tactile sensing and agility. We believe we possess the most sophisticated humanoid robot available and have all the necessary elements to scale our development effectively.
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Tesla’s Vision: A Sustainable Energy Future Driven by AI and Innovation
In a recent discussion, Elon Musk highlighted how other companies lack the necessary AI capabilities to scale operations for high-volume production. While impressive video demonstrations exist, Tesla’s local AI integration and capacity for mass production position it ahead of competitors. Musk emphasized that Optimus could become the company’s most valuable product, alongside its booming energy sector.
Record Production at the Lathrop Megapack Factory
The opportunity for growth in Tesla’s energy business is substantial. The Lathrop Megapack factory has reached a production rate of 200 Megapacks per week, equating to a 40-gigawatt hour annual run rate. Additionally, a second factory in Shanghai is set to start operations with an expected 20-gigawatt hour annual run rate in the first quarter of next year. Musk speculates that Tesla will eventually ship 100-gigawatt hours of stationary storage annually, with a long-term goal of reaching multiple terawatt hours per year to ensure a sustainable energy future.
A Vision for Sustainable Energy
Musk discussed a complex “master plan” that reveals a pathway for achieving a fully sustainable energy situation. The plan suggests that with sufficient resources, humanity could transition to sustainable energy generation, battery storage, and electric transportation without facing material shortages. He presented an intriguing analogy, comparing civilization’s energy usage to graduation levels: currently, we utilize less than 1% of Earth’s potential energy, with future goals stretching to harnessing all the power of the sun and, eventually, the galaxy.
Tesla’s Strategic Approach in a Competitive Market
During the Q3 earnings call, CFO Vaibhav Taneja reported strong financial results, including record operating cash flows of $6.3 billion. Automotive revenue grew year on year, despite a reduction in average selling prices (ASPs) due to financing incentives. Taneja noted that the recently launched Full Self-Driving (FSD) features, such as for the Cybertruck, contributed $326 million in revenue, while regulatory credit sales exceeded $2 billion this year. Taneja also pointed out that China’s EV market outperforms the U.S. and Europe by a factor of three, signaling potential growth in other regions.
Challenges and Strategies Ahead
As Tesla continues to expand production, maintaining automotive margins into the fourth quarter may prove challenging amid current economic pressures. The company is focused on cost reduction strategies without compromising customer experience. Reduced interest rates could enhance vehicle affordability, potentially boosting consumer demand.
Looking Forward to Continued Growth
Taneja also mentioned the fluctuating energy deployments, which tend to vary each quarter due to customer readiness and order fulfillment locations. Despite a notable decline in Q3, he forecasts significant growth in energy deployments in Q4, aiming to more than double figures from the previous year. Record energy margins of over 30% indicate successful project mixes deployed during the last quarter.
To wrap up, Musk remains confident about Tesla’s innovative trajectory in energy, transport, robotics, and AI. The company is steadfast in its approach to building a sustainable future, contrasting with others who are primarily focused on short-term trends. With continued execution of their ambitious goals, Musk believes Tesla could emerge as the most valuable company globally.
Travis Axelrod — Head of Investor Relations
Vaibhav Taneja — Chief Financial Officer
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Tesla’s Future: Focus on AI, Cost Reduction, and Autonomous Vehicles
Tesla continues to see growth in supercharging revenue as fleet size increases, with a noticeable decline in operating expenses over the last quarter and year. The company’s restructuring efforts in Q2 have contributed to these savings. However, increases in costs related to artificial intelligence (AI) initiatives partially offset these gains. By the end of this month, Tesla aims to have 50,000 GPUs in operation in Texas, a project that has been initiated ahead of schedule.
On the capital expenditure (capex) side, Tesla reported approximately $3.5 billion for the quarter, a sequential rise driven primarily by AI computing investments. The company now projects its total capex for the year to exceed $11 billion. Tesla shared its forward-looking vision at a recent event, laying the groundwork for its next generation of vehicles.
Elon Musk, Tesla’s Chief Executive Officer, emphasized that the company is devoted to turning its ambitious vision into reality. As significant strides have been made this year, Musk noted that the integration of new technologies and navigating various regulatory frameworks will require additional time. He expressed gratitude to the Tesla team for their ongoing efforts.
Travis Axelrod — Head of Investor Relations
Next, we’ll address investor questions. The first inquiry is whether Tesla remains on track to launch the more affordable model next year, as previously indicated by Elon. How does this relate to your AI and product plans?
Unknown speaker — — Analyst
Yes, as both Elon and Vaibhav stated, we are on track for a release in the first half of next year. Our goal has always been to reduce vehicle costs to promote the broader adoption of sustainable energy and transportation. This effort includes not only lowering current vehicle prices but also introducing robotaxis, reducing entry costs for electric vehicles (EVs). This will link our EV plans with our AI roadmap.
Elon Reeve Musk — Chief Executive Officer and Product Architect
Indeed, we are targeting a price point around 30K, a crucial threshold for our affordable models.
Travis Axelrod — Head of Investor Relations
Thank you. A related question is when we can expect news on the $25,000 non-robotaxi vehicle.
Elon Reeve Musk — Chief Executive Officer and Product Architect
We are not providing a specific timeline currently.
Unknown speaker — — Analyst
All of our existing vehicles are focusing on future advancements.
Elon Reeve Musk — Chief Executive Officer and Product Architect
Let me clarify: the future is centered around autonomous vehicles. I have said this for years, and it appears to be confirmed as a viable trend. Non-autonomous gasoline vehicles will look like relics compared to their electric counterparts. Although some traditional vehicles still exist, they will be niche products.
Many automotive firms have not grasped this paradigm shift, which may jeopardize their future. Tesla is committed to producing a fleet of electric vehicles, with nearly 7 million capable of autonomy today. We are currently manufacturing about 35,000 autonomous vehicles each week, eclipsing competitors like Waymo, which operates fewer than 1,000 cars.
Unknown speaker — — Analyst
And our models remain aesthetically conventional.
Elon Reeve Musk — Chief Executive Officer and Product Architect
Yes, most of them do. The Cybertruck is an exception. We aspire to make the Cybercab, our robotaxi, aesthetically futuristic, representing a revolution not just in design but in production methods. The output efficiency of the Cybercab line is extraordinarily improved, setting a new standard for automotive manufacturing.
Unknown speaker — — Analyst
Indeed, replicating a factory is nearly impossible.
Elon Reeve Musk — Chief Executive Officer and Product Architect
Correct. We are continually innovating our manufacturing processes. In summary, creating a standard $25K model would be misaligned with our vision.
Unknown speaker — — Analyst
In a future driven by autonomy, we focus on the most efficient cost structure per mile, which is key to our robotaxi initiative.
Elon Reeve Musk — Chief Executive Officer and Product Architect
Absolutely. The total cost of ownership per mile is what’s truly significant. Traditional hybrid vehicles cannot compete with a vehicle specifically designed for autonomy. Cybercab will not feature a steering wheel or pedals, as traditional control mechanisms will be unnecessary.
The expected price point for the Cybercab is around 25K, and these vehicles will be readily available.
Travis Axelrod — Head of Investor Relations
Thank you. Next question: What steps is Tesla taking to reduce long wait times at service centers?
Unknown speaker — — Analyst
We are focused on resolving issues at their source, ideally in the factory, so they never reach our customers. Our approach emphasizes preventative maintenance; the best service is one that is not needed.
Elon Reeve Musk — Chief Executive Officer and Product Architect
Exactly. Minimizing breakdowns is key.
Unknown speaker — — Analyst
Correct, and we aim to find solutions upstream or address issues remotely, either on-site or through software updates.
Additionally, measures are underway to ensure improved service metrics through the end of this year.
Tesla’s Expansion and Innovations: A Look Ahead
Last year, Tesla opened close to 70 locations and plans to continue expanding. In North America, they have also doubled the size of each service center compared to the previous year.
Elon Reeve Musk — Chief Executive Officer and Product Architect
Musk emphasized the benefits of larger service centers. Having more space allows for specialization, making it easier for technicians to become experts in specific repairs. This factory-like approach streamlines the processes and maximizes efficiency.
Unknown speaker — — Analyst
Dedicated repair lanes for heavy repairs have proven beneficial. Treating service operations like a manufacturing process has streamlined their functionality.
Elon Reeve Musk — Chief Executive Officer and Product Architect
According to Musk, Tesla’s structure offers a significant advantage over traditional car dealers. Since Tesla makes and services their own vehicles, they are motivated to reduce service costs, unlike dealerships that profit primarily from repairs.
Unknown speaker — — Analyst
This approach also fosters collaboration between service teams and the manufacturing side, leading to improvements in production and design.
Elon Reeve Musk — Chief Executive Officer and Product Architect
Musk believes this integration provides Tesla with a structural advantage in the auto industry.
Unknown speaker — — Analyst
On the software front, Tesla is enhancing omni diagnostics, allowing cars to alert service centers about needed repairs before they arrive. Automating preparation ensures that necessary resources are ready for efficient service.
Elon Reeve Musk — Chief Executive Officer and Product Architect
This means that often, technicians don’t have to diagnose problems upon arrival, as the vehicles provide the needed information directly.
Vaibhav Taneja — Chief Financial Officer
Taneja pointed out that many of their cars, except for the Cybertruck, may look similar, but they are equipped with substantial capabilities.
Elon Reeve Musk — Chief Executive Officer and Product Architect
Though similar in appearance, Musk believes Tesla vehicles stand out in terms of performance and technology.
Travis Axelrod — Head of Investor Relations
A question arose regarding the Semi truck’s development and the timeline for Full Self-Driving (FSD) readiness.
Unknown speaker — — Analyst
The Semi factory in Reno is progressing quickly, with plans for pilot builds in the second half of next year and full production expected in the first half of 2026. Growth for the Semi will be driven by customer adoption.
Elon Reeve Musk — Chief Executive Officer and Product Architect
Musk expressed confidence that demand for the Semi will not be restricted.
Unknown speaker — — Analyst
The economics make the Semi a no-brainer for businesses due to its low total cost of ownership.
Elon Reeve Musk — Chief Executive Officer and Product Architect
The demand for the Semi is substantial, with many businesses recognizing its benefits over diesel trucks.
Unknown speaker — — Analyst
This demand is validated by the experiences of fleets, such as Pepsi’s. Drivers are increasingly reluctant to switch back to traditional trucks once they’ve tried the electric Semi.
Elon Reeve Musk — Chief Executive Officer and Product Architect
Once drivers experience the electric Semi, it becomes their preferred choice.
Unknown speaker — — Analyst
The Semi’s performance has made it popular among drivers.
Elon Reeve Musk — Chief Executive Officer and Product Architect
The Semi is not only fast and fun to drive, but it also handles well and can perform effectively under demanding conditions.
Unknown speaker — — Analyst
This responsiveness benefits both drivers and overall road safety by reducing congestion.
Elon Reeve Musk — Chief Executive Officer and Product Architect
All Tesla vehicles are being prepared for FSD upgrades, with the necessary hardware and cameras being rolled out to support the new platform.
Tesla’s Future: Innovations and Autonomy in the Driver’s Seat
Elon Reeve Musk — Chief Executive Officer and Product Architect
Musk discussed the significant improvements in driver safety that Tesla’s technology offers. He highlighted features like anti-jackknifing software, which enhances safety during steep descents by managing brake temperatures. “It’s a massive improvement in driver fatigue and safety,” Musk stated, emphasizing that drivers find the electric systems far superior to those of traditional diesel vehicles.
Travis Axelrod — Head of Investor Relations
Axelrod transitioned the conversation, asking when Tesla plans to fully integrate its X and Grok systems in all vehicles. Musk responded by expressing commitment to enhancing vehicle features, stating, “We will keep expanding the capabilities available on the car’s screen.” He envisions a future where fully autonomous vehicles serve as entertainment hubs, allowing passengers to browse the internet, watch films, or play video games.
Unknown speaker — — Analyst
This shift in focus toward in-car entertainment aligns with Tesla’s ongoing development of gaming and media features, as Musk reinforced the idea of a complete entertainment experience suitable for autonomous vehicles.
Elon Reeve Musk — Chief Executive Officer and Product Architect
Musk mentioned popular games available in Tesla cars, such as Castle Doombad and Polatopia. He encouraged users to try these games, enhancing the car’s appeal as a versatile platform for entertainment.
Travis Axelrod — Head of Investor Relations
Axelrod then asked about the timeline for unsupervised Full Self-Driving (FSD) features in California and Texas. Musk acknowledged California’s regulatory environment but expressed optimism about receiving necessary approvals next year. He noted, “I’d be shocked if we don’t get approved next year,” indicating that progress is in motion for those regions.
Unknown speaker — — Analyst
Further clarifying the regulations, an analyst pointed out the federal requirements for vehicle certification and acknowledged that state-level regulations could complicate deployment timelines for autonomous vehicles.
Elon Reeve Musk — Chief Executive Officer and Product Architect
Musk advocated for a national framework for autonomous vehicle approval, calling the current patchwork of state regulations inefficient. He stated, “It’s essential for the U.S. to have a national approval process,” stressing that all automakers would benefit from simplified regulations.
Travis Axelrod — Head of Investor Relations
Axelrod posed another question regarding Tesla’s roadmap for 2025. Ashok Elluswamy, Director, Autopilot Software, responded that Tesla is focused on producing more affordable models, with preparations already underway in their factories to support this initiative.
Elon Reeve Musk — Chief Executive Officer and Product Architect
Musk elaborated on the challenges of reducing vehicle costs, likening it to a heroic endeavor. “It’s more difficult to lower the car’s cost than to design the vehicle from scratch,” he noted, underscoring the complexities involved in making automobiles more accessible to consumers.
Unknown speaker — — Analyst
As the dialogue continued, Musk stressed the importance of each incremental cost reduction, likening it to a “Game of Penny.” With approximately 10,000 components per vehicle, he explained that reducing costs by merely $0.50 per item could lead to significant savings and a more affordable final product.
Unknown speaker — — Analyst
As the meeting concluded, the dialogue highlighted Tesla’s innovative strategies and growing focus on autonomous driving and entertainment, indicating a promising future for the company and its investors.
Tesla’s Ambitious Future: From Cybercabs to Robotaxis
Elon Reeve Musk — Chief Executive Officer and Product Architect
Exciting developments are on the horizon, particularly with our Cybercab project. We’re reimagining the car design and are in the process of high-volume production for a revolutionary machine. It’s worth noting that no other car manufacturer is attempting what we are, and I can confidently say we stand alone in our approach. The new machine we’re designing is intended to outperform traditional factories by a factor of five.
Unknown speaker — — Analyst
Indeed, Tesla’s integration of design and manufacturing processes is unique. When we’re designing a part, we consider its entire lifecycle—where it’s made, how it ships, and how it fits into the vehicle assembly. Without comprehensive planning, we risk creating bottlenecks in cost, time, and efficiency. With our robotaxi development, we’ve managed to merge these considerations effectively, ensuring production is as efficient as possible. This will be evident in our capital expenditure efficiency, as well as the vehicle’s simplicity and performance.
Vaibhav Taneja — Chief Financial Officer
Looking ahead, by 2025, we plan to begin manufacturing new cars while expanding our storage capabilities with the Powerwall 3. We aim to grow our supercharging network, involve more original equipment manufacturers (OEMs), and continue the development of our 4680 battery cells. Additionally, our lithium refinery will start production soon, showcasing our ongoing progress.
Elon Reeve Musk — Chief Executive Officer and Product Architect
It’s remarkable to see Tesla excelling across nearly all domains we’re engaged in. While many large companies focus solely on one area, we’re a multifaceted entity, reflecting the complexity of our operations.
Vaibhav Taneja — Chief Financial Officer
Correct. Tesla really operates like several companies under one umbrella.
Travis Axelrod — Head of Investor Relations
On another note, can you provide an update on the Tesla Roadster?
Elon Reeve Musk — Chief Executive Officer and Product Architect
Addressing our long-time Roadster deposit holders, I want to explain that the delays stem from prioritizing our mission to accelerate sustainable energy solutions. While the Roadster is incredibly exciting, its launch is secondary to projects that will have more substantial positive impacts on the world. Nevertheless, we are advancing towards finalizing the design, and it’s shaping up to be an impressive vehicle. Interestingly, while discussing futuristic cars, my friend Peter Thiel noted a lack of flying cars—perhaps we’ll see something like that in the future.
Travis Axelrod — Head of Investor Relations
Regarding the rollout of Robotaxi, could you clarify the plan? Will it begin with a Tesla fleet and allow customers to add their own vehicles to the subscription model?
Ashok Elluswamy — Director, Autopilot Software
When it comes to Hardware 3, we found it more effective to develop solutions using Hardware 4 and then backport those to Hardware 3. Many improvements in capability come with Hardware 4, which will be critical in our upcoming launches. This backward compatibility will take time, but our priority is seeing progress with the newer hardware first.
Elon Reeve Musk — Chief Executive Officer and Product Architect
We are still clarifying our plans, but it’s fair to say that Hardware 4 has significantly greater capabilities compared to Hardware 3. This raises concerns about whether Hardware 3 will adequately support unsupervised Full Self-Driving (FSD) functionalities. If it turns out that Hardware 3 cannot meet necessary safety standards, we will upgrade the systems for free for our customers.
Travis Axelrod — Head of Investor Relations
Now, let’s turn to some analyst questions. Pierre Ferragu from New Street, you’re next.
Pierre Ferragu — Analyst
Thank you for your time. I’m curious about your computing capabilities. You mentioned not feeling constrained—how is this additional computing power being utilized? Are you focusing on creating larger models like OpenAI did with GPT-3 to GPT-4, or are you enhancing your existing model for better reliability as you ramp up?
Elon Reeve Musk — Chief Executive Officer and Product Architect
In response to your first question, the essence of real-world AI differs from large language models because it incorporates a vast amount of contextual data, using multiple cameras and sensors to create a more integrated driving experience.
Elon Musk Discusses Tesla’s Autonomous Driving Strategy and xAI Partnership
Contextual Challenges in Autonomous Driving
The process of training autonomous vehicles at Tesla involves managing enormous amounts of data. For example, internal cameras capture data that must be distilled into a manageable size, reflecting the limitations of current AI models. While many large language models (LLMs) struggle with gigabytes of context, Tesla’s system is designed to efficiently utilize small compute power in the car. Achieving this requires intensive training, similar to how humans learn to drive over time. With heavy training, the necessary mental work diminishes, allowing vehicles to operate with less computational support.
Prioritizing Data Quality Over Quantity
Tesla gathers vast amounts of data, even petabytes, but sorting through what is genuinely valuable for training is a complex task. While the company is focused on improving its training processes, the existing computational constraints mean they need to be strategic about the data they analyze and utilize.
Safety Is the Top Concern for Tesla
Tesla is committed to complying with safety regulations that vary by state regarding the use of safety drivers. Each state has its own requirements for the miles driven and time spent under the supervision of a safety driver. The company aims to prioritize safety as it prepares for the rollout of its rideshare services.
Future Goals for Driverless Rides
Elon Musk indicated that he anticipates the launch of driverless Teslas providing paid rides in the upcoming year. This goal aligns with the company’s innovation and commitment to autonomous technology.
Understanding the Tesla and xAI Relationship
In response to a question from an analyst regarding the connection between Tesla and xAI, Musk clarified that xAI has been instrumental in enhancing Tesla’s AI capabilities. The focus of xAI is on more complex issues like artificial general intelligence, distinct from Tesla’s objective of developing autonomous vehicles. Both organizations may collaborate in areas where their goals intersect, but they largely tackle different challenges.
Unique Capabilities of Tesla
Ashok Elluswamy noted that while there are opportunities for collaboration, it is essential to recognize that not all AI technologies are the same. Tesla’s strength lies in its exceptional data-rich environment and world-class chip design team, which is critical for developing efficient inference compute. Unlike traditional cloud companies, Tesla’s AI solutions are tailored for real-world applications.
Conclusion
Looking ahead, Elon Musk expressed confidence in xAI’s continuing support for Tesla’s AI work while emphasizing the diversity of problems each company addresses. As Tesla moves forward in the realm of autonomous vehicles, the focus will remain on practical applications and safety, supporting its ambitions in the rideshare market.
Duration: 0 minutes
Call Participants:
Travis Axelrod — Head of Investor Relations
Elon Reeve Musk — Chief Executive Officer and Product Architect
Ashok Elluswamy — Director, Autopilot Software
David Lau — Vice President, Software Engineering
Vaibhav Taneja — Chief Financial Officer
Adam Jonas — Analyst
This article is a transcript of this conference call produced for The Motley Fool. While we strive for accuracy, there may be inaccuracies in this transcript. We encourage readers to research and review official company filings for comprehensive information.
The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
