TESLA_TSLA Earningcall Transcript Of Q2 of 2024

And when picking up a car for service to just show people how to use it and just drive them
around the block. Uh, once people use an adult that I tend to continue using it. So it's uh it's very
compelling. And, And then this I think will be a massive Command driver, even unsupervised full
self driving will be a massive, demand driver Um, And as we increase the miles per intervention.

It will transition from supervised for self-driving to unsupervised for self-driving. And we could
unlock a massive potential in B3.

We postponed the sort of robotaxial that Product. Unveiled. By a couple months where it were,
it's shifted to 10, 10 to the 10th of October. Um, and This is because I wanted to make some
important changes that I think would improve the The, the sort of Throw a taxi, the thing that
were the main thing that we're going to show and we're also Show off a couple of other things.

Um, so moving back, moving it back. A few months, allowed us to Improve the The robotaxi as
well as Add in a couple other things. For the product unveiled.

We're also nearing completion of the South expansion of giga Texas, which will has a largest
training. Cluster today's this will be an incremental of 2000 h100 plus 20, 000 of our Hardware
floral Hey, I buy a Tesla. AI computer. Um, was Optimus, uh, Optimus is already forming tasks in
our Factory.

Um, And, We expect to have Optimus production version one. And limited production. It's
starting early next year. This is before Tesla consumption. Uh, it's just better for us to iron out
the issues. Ourselves. But we expect to have several thousand Optimist robots. Reduced and
doing useful things by the end of next year in the Tales of boundaries, and then in 2026,
ramping up production quite a bit.

And at that point, we'll be providing optimus. Robots. Our outside, customers LV production,
version, two of options. For the energy business. Uh, this was growing faster than anything else.
This is we're really Demand constraint rather than production constraint. So we're ramping up
production in our U.S factory as well as building our building back Factory in China.

Should you know roughly double our output? Maybe trouble potentially so Um, inclusion. We're
super excited about the progress across the board. We're changing the energy system, how
people move around, how people approach the economy. They are taking is massive, but I think
future is incredibly bright. You know, I I really just And emphasize just the importance of
autonomy for the vehicle side and for optimize Although the numbers sound sound crazy.

Um, I think Tesla producing app volume with with. And survived MSD. Essentially enabling
enabling the fleet to operate like a giant autonomous. And, It takes the valuation, I think to Pretty
crazy number of Market best things on the order of five trillion dollars. I think they're probably
not wrong.

Um, And long-term Optimus, I think. Which is going to achieves evaluation several times that
number Um, I want to thank the Tesla team for strong execution and looking forward to exciting
music. Thank very much Elon and venom has opening marks as well. Thanks, as Elon
mentioned, the Tesla team rolls to the occasion yet.

Again, who delivered on all fronts with some notable records. In addition to those records, we
saw our automotive. Deliveries go sequentially. I would like to thank the entire Tesla team for the
efforts in delivering a great code. On the auto business fund affordability, remains a top of mind
for customers and in response in Q2 we offered attractive, financing options to offset sustain
high interest rates.

These programs had an impact on revenue per unit in the quarter. These impacts will process
into Q3 as we have already launched similar programs. We're now offering extremely
competitive financing rates in most parts of the world. This is the best time to buy a Tesla. I
mean if you're waiting on the sidelines come out and get your car We had a record quarter on
regulatory credits revenues end as well on that our convergence.

What about I mean flat sequentially, it's important to note that the demand for regulatory pivots

is dependent upon other Williams plans for the kind of vehicles. They're manufacturing and
selling as well as changes in regulations. And pride ourselves to be the company with the most
American-made cars and are continuing our journey to further localize, our supply chain, not just
in the U.S, but in Europe, and China as well for the respective factories.

As always, our Focus is on providing the most compelling products at a reasonable price, we
have stepped up our efforts to provide more trips that have estimated range of more than 300
miles, on a single charge. We believe this along with the expansion of our supercharging
network is the right strategy to combat change anxiety.

Since the revision of fistic pricing in North America, we've seen action rates, increase,
meaningfully and expect this to be a driver of vehicle sales as the feature set includes further.
Cost per vehicle, decline sequentially, when we remove the impact of cybertron. Why you are
experiencing material costs, turning down note that there is latency on the cost side and such
reductions would show up in the p l when the vehicle built with these materials get delivered.

Additionally, as we get into the second half of the year, it is important to note that we are still
ramping. Cyber trial and moral tree and are also getting impacted by varying amounts of tariffs
on both raw materials and conditionals. While our teams are working previously to offset this.

Unfortunately, it may have an impact on the cost in the nature. And previously talked about the
potential of the energy business and now feel excited that the foundation that was made over
time is being the expected results energy storage deployments more than travels, with
contribution, not just in from mega pack but also power Resulting in record revenues and profit
for the energy business.

An energy storage backlog is strong as discussed before. Deployments will fluctuate from payer
to pay rent with some quarters. Seeing larging pieces and others seeing a decline. Recognition
of storage gigabortars is dependent on a variety of factors, including Logistics timing. As we
send units from a single Factory to markets across the world customer Readiness.

And in case of EPC projects of construction activities, Moving on to the other parts of the
business service and other gross profits, also improve sequentially from the Improvement, and
service utilization and growth in a collision repair business. Impact of a recent reorg is reflected
in restructured and other in on the income statement just never said this was about 642 million
dollars of charge, which got recorded in the period.

And I want people to remember that we call it out separately on the financials sequentially. Our
operating expenses, exploding such charges Despite an increase in spend for AI related
activities and highly than other costs. On the capexron. Why we saw a sequential decline in Q2?
We still expect the year to be over 10 billion in capex.

As we increase that's planned to bring a 50 kg GPU. Cluster online, listener will immensely
increase the capabilities to scale, FSD, and other AI, initiators. We devoted to positive free cash
flow 1.3 billion in K2. This was despite restructuring payments being made in the quarter and we
entered the quarter with over 30 billion of cash and Investments.

Once again, we've begun the journey towards the next space for the company with the building

Banks being placed, it will take some time but will be a rewarding experience for everyone
involved. Once again, I would like to thank the entire tesla team for their efforts. Great. Thank
you very much above.

Uh now let's go to investor questions. That the first question is, what is the status on the
Roadster? Uh, with respect to Rochester, we've completed both the engineering And, I think
there's some upgrades we want to make to it, but we expect to be in production with Royster
mixture.