[音乐] [掌声] [音乐] 那么 [音乐] [掌声] [音乐] 那么 [音乐] 那么 [音乐] [掌声] [音乐] 哦 [音乐] 那么 [音乐] 再见 [音乐] 从法律上说 [音乐] 那么 [音乐] 女士们、先生们，感谢各位耐心等候，欢迎参加Tesla 2020年第三季度财务业绩及问答网络直播。目前所有参与者均处于仅收听模式。发言结束后将进入问答环节。要在会议期间提问，您需要在电话上按星号键和1。如需任何进一步协助，请按星号键和0。现在我想把会议交给演讲人，投资者关系的的高级总监马丁·维卡先生。先生，请开始。谢谢你，雪莉。大家下午好，欢迎参加Tesla第三

季度2020年问答网络直播。今天与我一起参会的有埃隆·马斯克、扎卡里·柯克霍恩以及多位其他高管。我们的第三季度业绩已于太平洋时间下午约1点公布，相关更新资料发布在与本次网络直播相同的链接上。在本次电话会议中，我们将讨论业务展望并作出前瞻性陈述。这些评论基于我们截至今天的预测和预期。由于多项风险和不确定性，包括我们最近向美国证券交易委员会提交的文件中提到的风险和不确定性，实际事件或结果可能存在重大差异。在今天电话会议的问答环节，请将问题限制为1个问题和1个追问。如果您想加入提问队列，请现在按星号键和1。不过在进入问答环节之前

埃隆有一些开场发言。埃隆。谢谢，马丁。好的，第三季度是我们历史上表现最好的季度。我们的产量、交付量、营收、净利润都创下纪录，呃，包括差距和在差距上，还实现了创纪录的自由类别现金流，达到1.

40亿美元。这确实要归功于Tesla团队出色的执行力。能与这样一群优秀的人共事，我感到无比自豪。真正是横跨并遍及全世界的踢出式表现。当然，我们举办了电池日，呃，我们展示了关于如何拓展未来并改进核心电池技术、核心电芯技术的计划，涉及外形尺寸层面、化学层面，我认为更重要的是制造技术层面。我过去说过的一点是，我认为Tesla的长期竞争优势将主要在于制造。这有悖直觉，但我，我非常确信这将会是，呃，将会发生的事情。呃，总之，我们展示了团队长期以来一直在研究的

时间，好吧，电池。嗯，我们想退一步，真正从头重新思考电池，呃，用第一性原理思考，只看基础物理学，然后说，什么，呃，与其和市场上的其他产品比较，不如就从物理学角度来说，如果你，你知道，物理极限是什么，完美电芯的柏拉图式理念是什么，以及我们能多接近它。嗯，呃，这就是我们的追求，我认为我们，我们已经有了一个相当不错的，呃，实现方法。嗯，而且随着时间推移，它只会越来越好。所以我们研究了电池设计和生产每个重要部分的所有工程解决方案。嗯，我们会继续迭代，并以递归方式改进核心电芯和电池技术。我们认为，其结果在

你知道，几年后，将是成本降低一半的电池，而所需资本支出将是目前的三分之一或更少。我们预计柏林超级工厂将迎来我们的第一条规模化电芯生产线。关于完全自动驾驶测试版的发布，Autopilot团队再次是一支真正的全明星团队。嗯，我花了很多时间与，与Autopilot团队共事，团队中有很多非常有才华的人，他们极其努力地工作，促成了，完成了测试版发布。所以我真的很想感谢他们的，他们的辛勤工作。嗯，呃，这就是一群，一群非常聪明的人。所以，嗯，我，我认为我们一开始会非常缓慢、非常非常谨慎。嗯，因为世界是一个复杂而混乱的地方，所以我们

我们，嗯，你知道，昨晚把它发布出去了，接下来会看看情况如何，然后，呃，可能在本周末或下周初向更多人发布，之后逐步扩大范围，希望到今年年底能够广泛发布。当然，随着系统收集更多数据，它会变得更加稳健。嗯，所以，嗯，这有点像，你知道，Google作为搜索引擎是如何变得更好的？那是因为每个人都通过不断提出你的问题并点击特定链接来为它编程。因此它拥有这种很棒的反馈循环，而这，这使它成为一个极其有效的搜索引擎。自动驾驶也是如此，大约有100万辆汽车提供反馈，尤其是针对那些奇怪的边缘

案例情形，这些是你在模拟中根本想不到的。呃，这才是真正有价值的东西。它不像那些，那些，那些，那些，那些显而易见的东西；显而易见的东西可以在模拟中完成。嗯，但奇怪的边缘案例，呃，只有现实才能，才能提供给你。所以就是这样，但我们能够说，好，我们需要针对这个边缘案例情形训练系统，呃，并，并寻找实例，这样我们就能，我们就能接着，呃，利用这些实例进行训练，并改进，呃，某个非常冷僻的边缘案例。嗯，而且，嗯，还必须强调，这是一种通用的，呃，基于神经网络的方法。呃，不需要高清地图或手机连接。所以这辆，这个系统的设计是，即使你完全没有网络连接，而且你身处

一个你以前从未去过、也从未有任何Tesla去过的地方，汽车仍应能够像人一样驾驶。这就是我们正在开发并计划于今年发布的系统。然后在产能建设方面，我们正在推进，嗯，3座主要工厂。呃，我们正在继续大幅扩建上海工厂，呃，进展好得令人难以置信。Tesla中国团队简直，我是说，优秀得令人难以置信。我，我们超级聪明，工作努力，就像，我总是惊叹于中国团队取得了如此大的进展。呃，这超出了所有合理预期。嗯，然后我们正在柏林和科技，以及，以及奥斯汀施工。嗯，所以那里的进展也不错。嗯，是的，总体进展顺利。我应该指出，对于柏林和奥斯汀

嗯，我们，我们确实预计明年开始交付这些工厂生产的汽车，但由于制造工厂产能爬坡具有指数性质，尤其是采用新技术的工厂，嗯，它一开始会非常缓慢，然后，然后，然后，嗯，变得非常，上端会变得非常大。总体而言，制造遵循S曲线，而且，你知道，我认为有时人们如果没有花很多时间从事制造，就会觉得一旦建成工厂，你只要把它打开，它就达到了产能。但通常需要约12至18个月才能达到产能，而这已经是非常快的，一段时间，尤其对于新技术而言。所以，是的，我甚至会说是12至24个月。嗯，所以总体而言，我看到的是，嗯，制造

产能起初会被低估，嗯，嗯，嗯，这种情况会持续相当长一段时间，随后有时又会被高估，因为这是一个S组。嗯，它从指数增长转为线性增长，再转为对数增长，而且它，它实际上是一件难度高得令人难以置信的事情，就是让一座生产工厂，呴，达到批量技术水平。这是因为你实际上可以把它想成，按照一阶近似，你有1万个独特的，呃，零部件或流程，它们全都按照S曲线、S曲线运行，而且，而且，而且如果我们在充满大量不确定性的情况下建设，你可以直接在x轴上滑动10 000条S曲线，这就是大型汽车工厂投产爬坡的样子；哪一个是，哪一个是那个，那个，那个落后者，哪一个是领先者，非常难以判断，而且还在不断变化。所以这确实是

我见过的最困难的挑战之一。嗯，那么来看，嗯，总之，呃，谢谢大家。没有数万名Tesla帝国员工和我们供应商所有人员令人难以置信的辛勤工作，我们取得的一切都不可能实现。也要感谢我们的供应商。我们会在专注于成本控制和提高质量的同时，继续尽可能快地增长。最终，最好的公司将是能够以可负担的价格制造优秀产品的公司，而这就是，呃，这就是我们的目标。我认为，相比，我过去相比今天，从未对Tesla的未来感到如此乐观。我还想感谢那些无论顺境逆境都一直与我们，与我们同行的投资者。嗯，这是，呃，我认为还有，还有很多更好的东西即将到来。好了。

接下来我们可以进入提问环节。谢谢你，利亚姆。我想我们的首席财务官扎卡里·柯克兰也有一些开场发言。好的，当然。是的，谢谢马丁。总体而言，我们的财务状况继续迅速改善，Q3在几乎所有方面又是一个出色的季度。正如埃隆提到的，在净利润方面，我们实现了连续第5个季度盈利，创下最佳净利润，营业利润率也接近两位数。为了说明Q3盈利情况的背景，有两件重要事项需要注意。第1点，监管积分业务强于我们的预期，按目前趋势，今年将达到去年的2倍以上。第二，由于公司市值上升，CEO的第2批和第3批……

该项授予在本季度归属，此外，我们已经开始对另外一批进行费用化，导致合计期间费用约为3亿。我认为，排除这两个项目来看本季度是合理的，以真正了解核心业务的健康状况。汽车毛利率（不包括监管积分）从18.大幅提高

7至23。

7%，我们的一些项目实现了超过25的毛利率。请记住，与工厂停工相关的低效影响了我们第二季度的利润率。我们继续降低制造和运营成本。我们也看到，本地生产和交付的汽车占比持续上升带来的益处，这一比例从去年年初的不到50%提高到最近超过70，这是我们降本战略的核心组成部分。我们还看到，车辆可靠性在整个脚部、整个车队范围内得到改善，由此带来了财务收益。服务在其他利润率方面再次获批，由我们的二手车业务以及服务运营中的效率推动。在能源业务方面，我们实现了创纪录的储能……

部署量得益于 Megapack 和 Powerwall 产品获得的积极反响，随着产量和部署量增长，此外，我们的太阳能部署量翻了一番，我们正在这方面继续取得进展。现金流方面，我们的现金余额增至145亿，其中包括1.的自由现金流

40亿，是我们迄今最高水平。我们的经营现金流为2.

40亿，其中包括营运资本带来的6亿收益，因为尽管应付账款天数减少，我们在应收账款和库存天数方面仍取得了进展。请注意，我们经营现金流的大部分是由核心业务运营的增强所推动的。资本支出增至10亿，主要受上海、柏林和奥斯汀的 Model Y 事件推动。至于此前对上海 Model 3 和弗里蒙特 Model Y 的投资，我们预计这些项目到今年年底时已经完全收回各自的投资。展望2021年和2022年，我们已将资本支出预期上调20亿至25亿，我们有充足的流动性和预期现金流为其提供资金。这是由增长所推动的

某些工厂的内部采购范围，包括电池电芯制造，以及为未来扩大产能而进行的投资。虽然我们预计投资回报仍会非常强劲，但请记住，由于范围扩大以及各地点特有的成本，这些投资的回收期可能会略长于我们在上海的 Model 3 和弗里蒙特的 Model Y 上所看到的水平。融资现金流为45亿美元，因为我们减少了营运资金信贷额度的使用，但被9月的50亿美元股权利率所抵消。请注意，我们目前预计第四季度将提前偿付超过10亿美元的可转换债券，主要与2021年的转换有关，但也包括我们的2022年和2024年债券。展望未来，我们仍专注于加强

业务的核心基本面。我们正在提高产量以满足需求，降低成本，包括推进本地化，提高整个业务的效率，并缩短我们的现金转换周期。在过去1年半里，我们在这方面取得了巨大进展。我们还力争实现最初的2020年指引，即交付500 000辆汽车，尽管今年早些时候运营曾受到干扰。虽然这一目标仍是一个真正的挑战，但我们相信，只要全公司严格执行，就有可能实现。所以，再次祝贺 Tesla 团队取得了出色的季度和出色的一年。我将把时间交给今年早些时候加入 Tesla、负责领导我们能源业务的 RJ Johnson，请他讲几句。谢谢你，Zach。首先，我也想

感谢并祝贺团队出色地完成了工作。第三季度是能源业务表现强劲的一个季度，而且我们已准备好让储能和太阳能业务继续强劲增长。Megapack 将成为这项业务的一个大型增长板块，随着产品达到满负荷产能，部署量将继续迅速扩大。截至2021年，我们的需求超过供应，并且我们将继续提高该产品的产量，以满足直至2023年及以后全球前所未有的需求。直至2023年，我们的订单簿正在迅速填满，规模达到数吉瓦时。如今，在全球许多地点，大规模太阳能加储能比传统的化石燃料发电更具成本效益。随着我们消除成本，这一趋势将继续，并将进一步取代

现有和新增的化石燃料发电。独立储能也是如此。许多客户正在使用 Autobidder 实现回报最大化，因为我们通过先进的实时竞价策略优化软硬件，而这些策略在已部署的市场上持续跑赢市场。对于 Powerwall，随着客户寻求更高的可靠性和家庭备用发电能力，我们看到住宅储能需求持续强劲。我们积压了大量 Powerwall 订单，并继续投资提高产能，以履行客户订单。我们现在才刚刚发挥出客户现场太阳能加储能的全部力量，因为在一些司法管辖区，当客户不需要消耗能源或不需要备用电力时，他们正向电网提供服务。这

具有降低系统成本并提高全球电网效率的巨大潜力，在美国，我们将住宅太阳能改造价格降至1.

税收优惠后为每瓦49美分，这是业内最低水平。我们能够做到这一点，是因为利用了我们的在线汽车订购基础设施，这大幅降低了与销售和营销相关的软成本。因此，随着我们的业务量和效率提高，固定成本仍保持相对平稳，从而提高了改造业务的盈利能力。我们在进入整个能源业务的各个领域采用同样的方法，包括服务，以利用公司的技术基础。Solar Roof 尤其令人振奋，因为过去1年里，我们在安装流程方面积累了丰富经验，而这是扩大业务规模的一个关键推动因素。最近，我们展示了完成 Solar Roof 安装的能力

只需1天。请注意，拆除现有屋顶并为安装 Solar Roof 做好准备仍需要1到2天。显然，根据尺寸、复杂程度、天气和其他因素，安装时间会有所不同。总体而言，缩短安装时间可以提供更好的客户体验，并将使业务能够呈指数级增长，因为规模效应会带来更高的效率。最后，我们相信，随着我们继续专注于扩大规模，同时降低成本以实现盈利能力最大化，能源板块已准备好实现强劲增长。我想再次感谢团队的辛勤工作，并期待我们迎来又一个强劲的季度。非常感谢大家，下面让我们开始回答来自 set. 的问题。

com，呃，来自散户股东的第1个问题是，Tesla 是否计划在柏林超级工厂开始汽车生产的同时开始生产4680电芯？Tesla 能否分享更多信息，说明哪些产品将使用弗里蒙特试生产线生产的电池电芯？呃，是的，嗯，Drew，你想回答吗？当然。呃，是的，随着时间推移，我们会把4680设计解决方案应用于能源和汽车领域的许多应用中，而且在柏林新工厂提高产量时，我们可以利用弗里蒙特的试生产设施为其提供支持。非常感谢。让我们进入下一个问题，也就是，嗯，散户股东提出的第2个问题：Tesla 的平板电芯设计是否支持显著更高的峰值充电速率？它是否改善了所需的充电功率递减曲线？是的

充电速率和锂离子电池的根本限制，是要避免阳极析锂。虽然平板架构有助于避免过热，因为在持续高充电速率下，它是一种功率密度更高的架构，但它不会改变阳极析锂的情况。电气设计和另一种材料选择会更直接地决定最大充电速率，以及如何避免这一析锂问题。好的，非常感谢。来自散户的第3个问题是，FSB 是否能够 tr 转移到，呃，转移到我们的下一辆汽车上，或者支付一笔转移费？呃，这会增加广泛的，呃，这会增强品牌忠诚度，就像游戏公司和手机公司通过允许你把购买内容转移到升级后的

硬件上，从而把你留在它们的生态系统中。嗯，是的，我想我们会，会考虑一下。好的，第4个问题是，要让 Solar Roof 的安装量大幅增长，还有哪些制约因素需要解决？Carl。是的，在 Solar Roof 工程和安装方面，目前 Solar Roof 产能爬坡的最大制约因素，是让足够多的安装人员加入并接受培训和积累经验。我们在第三季度对此取得了很大进展，而且还在继续招聘。下一个机会是改善施工现场的材料流动。我们在工厂也多次谈到这一点，也就是设置正确的包装和成套备料，让屋顶上的每一位、每一位安装人员都能把所需零件放在触手可及之处。此外，我们也得到了第三方屋顶承包商的热烈响应，因为他们正在

扩大在其客户住宅上安装 Solar Roof 的规模，而这是未来增长的重要来源。是的，我的意思是，在我看来，这里有一种思考产品的方式，你必须说，我想，当你展望从现在起未来10年的社区时，你希望世界是什么样子，你知道，你想要什么，哪些产品会让你的生活变得更好，你想要什么样的未来。我认为，在这样的未来里，我们拥有能够发电的漂亮屋顶，它们坚固、更坚固、更有韧性，而且在各个方面都优于普通屋顶，还有一个有能源的实验室，这就是我们想要的未来。Solar Roof 是一款杀手级产品。这一点明年会变得显而易见。谢谢。散户股东提出的最后一个问题是，你最近将

Tesla 称为初创企业的集合体。除了制造电动汽车之外，你认为未来5到7年内，Tesla 内部哪些业务部门将最具价值？你能设想它们中的任何一个有朝一日从 Tesla 分拆出去吗？嗯，是的，想想这一点。如今，Tesla 很可能，实际上 Tesla 内部大概有超过12家初创企业。每一条主要产品线都是一家初创企业。嗯，每一座、每一座新的大型工厂都是一家初创企业。嗯，坦率地说，有时候我们必须吸取几次教训才能真正领会。嗯，但是，而且你知道，甚至服务和销售之类的业务也是我们的初创企业。其他汽车公司、原始设备制造商并不拥有自己的销售和服务业务，所以我们必须建立自己的服务网络，必须建立自己的销售和交付网络，我们必须

要在我不知道，40个国家、多种语言中做到这一点。人们甚至不、不太了解的一件事，是我们的内部应用团队，他们编写了运营公司的核心，呃，技术。嗯，我们不依赖，嗯，企业软件。对于理解这意味着什么的人来说，这也是我心中一件非常重大的事，这要归功于内部应用团队的出色工作。嗯，他们就位于公司的神经系统、操作系统，也就是 Tesla 操作系统那里。呃，极其根本。嗯，显然，保险是、是非常重要的，所以坦率地说，保险很可能占购物车业务价值的不到30%、40%。嗯，而且正如我们以前谈过的，它有一个好得多的反馈回路。

嗯，它不再是统计性的，而是可以具体到个体。现在显然，某个人并非必须选择我们的保险，嗯，但我认为很多人会选择。只是，它会花费更少，而且更好，那为什么不呢？呃，然后整个自动驾驶这件事是一家初创企业，计算机芯片，为这家初创企业设计我们的计算机芯片。呃，显然，电芯是、是一家初创企业；为驱动单元设计并制造我们自己的电力电子设备；设计、制造我们自己的电机、充电器；超级充电网络是一家初创企业。我认为人们就是不太理解 Tesla 的一点是，它、它是由一整条初创企业链组成的。他们会说，好吧，你们以前没做那些。对，我们现在正在做。而且，我的意思是，我认为到目前为止，我们还没有，我们也许在

某些初创企业方面有点慢，但我认为其中没有任何、任何一家失败，所以到目前为止一切顺利。没有计划把任何东西花出去，那听起来就像是增加了复杂性。非常感谢。让我们进入因特迪申纳尔投资者问题。第1个问题是：随着他们过渡到莱尔德叫车网络，你们能否利用保险产品，让客户能够通过、通过应用出租他们的车辆，从而使汽车为他们赚钱？所以基本上就是图罗的专有版本。我们，我认为我们会专注于启用无人驾驶出租车系统，所以你基本上可以直接，就像，那只是一个子、那其实只是整个无人驾驶出租车或无人驾驶汽车这件事中相当小的一个子集，在这个系统中你可以让汽车实现自动驾驶。

对你来说，呃，你可以让这辆车，你知道，与朋友和家人共享，呃，你可以把它加入网络或从网络中移除，你可以让它完全处于网络中。我的意思是，如果你是 Uber 或 Left 的司机，你可以管理，你知道，一支由 10 辆车组成的车队。嗯，这似乎有点像，你知道，牧羊人照看街区之类的事情，就像你能获得大得多的杠杆。所以，你知道，我认为那就是某种我们可以做那件事的一周，而且不会非常困难。嗯，但我们，我们将只专注于拥有一个自动驾驶网络，你知道，它有点包含 Uberlift 和 Airbnb 的元素。谢谢。来自机构投资者的第 2 个问题是，住宅能源使用产生的碳排放量与道路大致处于同一量级

交通。如今的锅炉和空调设备极其不性感。你能否详细说明一下这方面的暗示，即 HVAC 随着这个为什么取得进展，它也可以用于家用系统？是的，Drew，你来说吧。我正想说，我的意思是，我认为我们在 Model Y、以及现在的 Model 3 泵系统上专注的事情之一，是学习如何制造一个高度集成的系统，真正能够把热量移向或移出任何地方，包括动力总成、电池、座舱、环境，在外部环境温度一直低到大约零下 20，呃，摄氏度，所以 30 摄氏度的情况下。而这绝对适用于，呃，家庭在供暖和制冷方面的需求，即住宅和家中用水的需求。所以当然适用。嗯，埃隆·马斯克。是的，绝对如此。嗯，我认为，就像汽车里的热量，如果他弹出，能够

把电池同时用作热能和电能的储存库，这一点非常重要。同样的事情也可以应用于配有热水器的家庭。所以，当然还有电池包本身。因此，我认为有潜力打造一个集成式家用系统，加拿大的发电、储能、供暖、制冷、空气过滤，呃，你知道，还有净水，都装进一个真正紧凑的组件里。嗯，我们实际上还没有原型之类的东西，但我认为从概念上讲，那可能会是值得拥有的东西。谢谢。来自机构投资者的第 3 个问题是，如果实现你们的长期销量目标需要降价，而这会使你们无法实现所声明的汽车业务低两位数利润率目标，你们仍会相应降价吗？

嗯，好的，我们希望让我们的汽车更可负担，而且始终要把可负担性和物有所值区分开来。嗯，你知道，如果，如果汽车的汽车太贵，或者某款产品太贵，那么人们的银行账户里就没有足够的钱，无论它的价值主张如何，他们就是买不起。所以，降低价格很重要，为的是让人们确实能有足够的钱购买它。我，我不认为我们的产品缺乏需求意愿，但我们的确缺乏可负担性，因此我们必须提高产品的可负担性，让它们不至于超出人们的承受范围。随着时间推移，我们希望让它们更触手可及。嗯，但，但也要改善我们的生产成本。嗯，另外，你知道，希望能好一点

每年都好一点，有时候会好很多。至于利润率，考虑到自动驾驶后，所有这些利润率看起来都会小得相当滑稽。是的。嗯，我再补充 2 点。毫无疑问，我的意思是，我们正在向前推进，尽可能推动我们合理所能达到的最大销量。呃，你知道，所以埃隆·马斯克之前讲过，S 曲线以及增量因素的时间线大致是什么样。因此，我们正全速前进，尽我们合理所能推进的最大销量向前推进。但我要说的第 2 点是，如果你只看公司过去 1 年半走过的历程，尽管在这段时间内进行了多次降价，我们的销量和毛利率都实现了增长。而且我们还让

运营支出在那段时间内也保持了相当稳定。所以关键就是埃隆·马斯克在这里提到的，我的意思是，我们必须提高汽车的可负担性。我们还必须继续取得进展，不仅改善销货成本的成本结构，也改善运营支出的成本结构；我认为过去 1 年半里，我们已经相当成功地证明了这一点，同时还提升了汽车的价值。所以除了降低汽车成本之外，我们还在让汽车变得更好，而这就是实现销量的公式。这就是我们的关注重点。非常感谢。来自机构投资者的第 4 个问题是，在什么时候，你们预计会拥有足够的内部或外部电池产能，从而再次开始扩大固定式储能部署？是的，我们，我们

正在大幅扩大固定式储能。所以我的意思是，我们预计明年大约会翻倍，是大约翻倍。嗯，那相当不错。嗯，而且，呃，希望我们在未来几年能够加快这一速度。今年也大约翻倍，所以增长，是的，是的。我的意思是，如果你不断让事物翻倍，很快就会达到宇宙的质量，而我们将需要开始，你知道，把木星变成电芯。来自机构投资者的最后一个问题是，制造很难，延误会发生。你们制定了哪些应变措施，以确保在租用内部电芯生产时可能遇到的瓶颈，不会使你们无法、无法实现柏林和得克萨斯的 Model Y 生产量目标？是的，所以我认为

这，我们已经努力降低2021年的风险，从而使它，你知道，几乎不依赖我们的内部电芯生产，呃，这种依赖非常非常小，呃，内部电芯生产将帮助我们在22年扩大产能，但我们在21年并不依赖它。

并降低制造系统本身的风险，这就是我们把试生产设施设在弗里蒙特这里的原因之一，这样我们就能针对制造扩产挑战快速迭代，并为产品和设备的设计提供快速反馈。是的，而且我知道，按试验线的标准来看，我们的试验线相当大。它，呃，我相信它会位列地球前 10 大电芯工厂。是的，没错，一个规模较小的工厂。是的。非常感谢。现在我们可以转向分析师的离线提问，Cherie。谢谢。再次提醒各位，请提出 1 个问题和 1 个后续问题。我们的第 1 个问题来自 Wolf Research 的 Rod Lashay。请讲。大家好。嗯，只是想问一下，呃，你们电池

日上的目标。嗯，看起来如果你们实现那些目标，到 2030 年可能会接近 2000 万辆汽车。嗯，你们能否与我们多分享一点中期目标，比如到 2025 年你们会达到什么水平，并且或许，呃，让我们更多地了解实现这一目标所需的投资，以便理解每年额外投入 20 亿至 25 亿美元的背景。是的，我，我的意思是，我认为试图预测指数增长中途情况的棘手之处在于，你，你知道，如果，如果事情每年翻倍，甚至只是增长 50，那么如果你偏移，你知道，正负 1 年，都会对这个数字产生巨大影响。嗯，所以听起来就会像是，哇，你要么大幅超出，要么大幅，呃，低于

，但实际发生的并不是一条巨大的 S 曲线，而是一大堆相当大的托管账户，它们汇合成一个巨大的托管账户。嗯，所以这就是为什么很难预测中间阶段。而且我不是说我们肯定会达到 2000 万辆汽车，只是觉得这是一个不错的目标，因为那意味着我们每年会替换全球车队的 1%。嗯，所以，如果我们没有，嗯，替换全球化石燃料汽车的 1%，那就很难说我们，你知道，是否真的在改变世界。我的意思是，除非我们，除非我们每年至少更换 1% 的汽车，否则我不确定我们能否提出那种说法。所以，这就是每年 2、2000 万辆汽车这一数字的由来。它就像

20 亿辆汽车的 1%，也就是目前的全球车队规模。全球饲料正在增长，呃，所以未来可能会再大一点。嗯，所以好吧，你知道，这很难说。就像我要把一条 S 型海湾映射到 2030 年 2000 万美元、2000 万辆汽车的目标上，然后来回移动滑块，看看那个数字是什么样子。这所能给你的洞见，大概就和我们拥有的一样多。好的。嗯，其次，嗯，你知道，如果固态锂金属变得可行，你能否谈一谈你对此的看法？而且对于技术变化，你们能否重新利用正在部署的大部分东西？是的，我的意思是，先回答第 1 部分。嗯，自主生产系统基本不受负极、正极、电解质的限制

把那类东西分开，我们可以改变，而且我们会改变并升级电芯的所有方面，所以[音乐]例如，我们可以制造铁前列腺，或者镍锰之类的东西。嗯，它的适应性很强。嗯，所以我不会，我不会说这只是更多地关于锂，比如纯锂阳极，嗯，我是说，不，它并不像，像它，它并没有听起来那么好。嗯，你知道，呃，是的。嗯，但按体积计算，你并没有获得那么多。呃，是的，因为如果你在那上面什么都没有，所以它在外侧，你就有了，而只是耗尽的锂，它必须去某个地方，所以你可以给它留出空间。是的，是的，纯金属形态的锂在体积密度上低于嵌入硅中的锂。

所以这有点难以理解，但那，那，那就是事实。而且，正如我们在演示中展示的，我们所谈的阳极总成本只有每千瓦时1美元或2美元，所以像去除末端材料这件事的价值也不是特别高。所以，是的，我完全同意，埃隆。是的，完全正确。嗯，但如果事实证明，如果你的锂阳极是正确的做法，那只会，那不会有问题，对吧？同意。好了，谢谢。谢谢。下一个，下一个问题，请讲。我们的下一个问题来自奥本海默的 Colin Rusch。请讲。嗯，非常感谢，各位。是的，你们谈到了将许多流程内部化。能否稍微谈谈你们正在将哪些流程转移到内部，以及相关设备？

你们计划自行制造哪些设备，呃，而哪些设备会从其他人那里购买？抱歉，你说的是用于电芯制造，还是什么？嗯，当然包括制造，也包括他们谈到的模具，但你知道，就你之前提到的 catbacks 预算而言，谈到，呃，你知道，许多流程转移到内部，嗯，以及你们计划自行制造哪些设备部件、哪些计划购买。好吧，我是说，与其他订单公司，或者基本上几乎任何公司相比，Tesla 绝对是垂直整合的。我们拥有大量内部制造技术，我们，我们自行建造。我们实际上制造机器。事实上我们，我们设计，所以就像，好吧，什么

是我们想制造的东西，设计出制造那个东西的机器，然后我们制造机器，这就是，这让复制 Tesla 变得相当困难，我们其实并不怎么反对别人复制我们，但这相当困难，因为你不能做目录式工程，你不能只是，我拿起供应商目录，我买一台这种机器、一台那种机器，搞定，我现在就是 Tesla 了。嗯，你必须，没有目录，什么目录，你知道，所以我们制造了制造机器的机器，而那台机器又制造了机器。可能不，不，我们不想在这里说得太过头，但，嗯，坦率地说，我们希望减少外包，嗯，那会很棒，嗯，因为那样的话，如果我们能够外包，如果我们能把正在做的某件事拿出来外包

出去，那么我们就可以把那些人调出来，而且我们会让他们去做别的事情，嗯，但，嗯，是的，就像我们只是在内部制造数量惊人的机器，嗯，这些谜题并没有被很好地，很好地理解，嗯，如果你在工厂里走一圈，就能感受到这一点，而且，嗯，是的，我不是说，我不知道这是否算是一个聪明的举动，但我，我只知道，比如，嘿，如果我们想取得进展，而没有人拥有我们，我们需要的机器，我们就得把它造出来，所以这就是我们所做的，嗯，好的，然后第 2 个问题实际上是关于，你知道，资产负债表确实已经发生了变化，你们一直运营得极其精简，而目前你们拥有多得多的缓冲，而且显然保险方面存在降低部分拥有成本的机会

以及金融业务，你知道，当你们开始尝试稍微加快需求增长时，你们是如何看待这件事的，还有你们利用资本获取渠道并促成其中一些，呃，那些其他产品的能力，嗯，是的，相比你们过去的状况，这一点是否正在改变？是的，我的意思是，像保险这样的东西就是一个很好的例子，它是一款基本上由我们的内部应用团队打造的产品，嗯，所以我们只是，我们打造了保险产品，并将它连接到汽车，查看数据，计算风险，这些基本上全都是内部的，内部软件应用，嗯，它所需资本相当少，但回报非常高。我，我不知道，我们正在尝试以我们所能达到的最快速度花钱，同时又不浪费钱，那就是我们的

当前计划，所以要做到花钱而不浪费钱相当困难，嗯，或者只是，你知道，我们真的只是在努力不要浪费太多钱，坦率地说，我们肯定会浪费其中一些，呃，但努力浪费，不要浪费太多，这非常困难，嗯，但除此之外，我们只是试图以合理且创造的价值高于成本的方式尽快花钱。谢谢。我们的下一个问题将来自摩根士丹利的 Adam Jonas，请开始。嘿，埃隆，嗯，关于激光雷达的问题，如果激光雷达完全免费，短期内你会想把它用在你们的汽车上吗？那项技术会显著帮助 Tesla 训练用于 FSD 的神经网络吗？我的意思是，完全免费，可能也不会。我想可能，我，我认为即使它免费，我们也不会

把它们装上去。好的，嗯，那我们接着问，嗯，亚马逊似乎正通过一些内部投资，同时也通过，你知道，Zuke's、Aurora、Ribbon 等，投资并建设某种自动驾驶或电动运输网络。对于 Jeff Bezos 的这项努力，你会给他什么建议？好吧，我不知道他对此有多在意，但我想他确实正在向其中投入大量资金。嗯，我的意思是，我认为他也需要投票支持，如果你关心自动驾驶，就需要专注于视觉，因为整个道路系统都是基于被动光学的，所以你必须解决被动光学，才能拥有一个作为通用解决方案的自动驾驶系统，而一旦你解决了过去的光学问题，你就解决了自动驾驶，那么为什么还要费心使用其他任何东西？谢谢，埃隆。谢谢。欢迎来到

下一个问题，请讲。我们的下一个问题将来自 New Street Research 的 Pierre Farragu，请开始。嗯，嘿，非常感谢接受我的提问，一个非常简单的问题，你们今天没有太多谈到，比如 Cybertruck，呃，我想知道，呃，那款产品的产能爬坡，呃，看起来会是什么样，我们什么时候，什么时候应该看到［音乐］产品上路，以及你预计产量租赁的速度会有多快？我能快速追问一下吗？当然。嗯，实际上上周五我和 Franz 以及团队在工作室，只是在审视，只是算是 Cybertruck 的一些改进，改进。你知道，通常，你知道，我告诉你，我们真的力求让交付的汽车优于，呃，发布时的汽车，嗯，因为总是开车

让我抓狂，你知道，汽车公司会发布这些看起来很棒的车，你会想，太好了，我等不及要造出那辆车了，然后他们真正造出来的车却差得多，这真的就是让人非常失望。所以，老兄，我们总是希望交付的车比发布时的车更好，这就是 Cybertruck 的目标。所以，嗯，与发布时相比，有很多很多小改进。嗯，你知道，我认为它会比我们展示的更好，而且，嗯，是的，它很酷，就像，它将在，嗯，在奥斯汀制造，所以这可能，你知道，取决于那座工厂的完工情况，而且显然还有新技术，包括，你知道，高硬度的，呃，某种装甲外骨骼，这是

以前从未做过，所以会有，会有，沿途可能会遇到一些挑战。嗯，显然，某种某种硬度极高、难以刮伤或跳舞的东西，也很难成形，所以这里存在一些制造挑战，这就是为什么它如此朴素，尽管我认为从更干净的角度来看，它也很好看。嗯，是的，如果我们专注做好，我们将能够在下一个……快结束时，以及明年年底前后交付一些 Cybertruck，是的。所以这很难预测。嗯，我会说，22 年可能会有大量交付，如果进展顺利，临近下一年时会有一些交付。好的，现在我想了解下一年会是什么样子，所以如果我看一下你们在

今年年底的产能，按年化计算将接近 850,000 辆，而你们将扩大上海的产能、启用柏林，你们今天说还会启用奥斯汀，所以你们可能会以超过 100 万辆的水平结束这一年。而且，而且所以，我这样想对吗，下一年我们应该预计你们全年交付，呃，大概在 840,000 到 100 万辆汽车之间？是的，我们会在下一次财报电话会议后提供 2021 年指引。我的意思是，它，它就在那个范围附近。嗯，是的，你的判断相差不远。谢谢。谢谢。谢谢。我们的下一个问题来自瑞士信贷的 Dan Levy，请提问。嗨，呃，晚上好，谢谢。我只是想先问一个关于本季度的问题。嗯，Zack，也许你可以让我们了解一下，呃，

本季度 Model Y 和中国 Model 3 的毛利率相对于弗里蒙特 Model 3 大致处于什么水平，然后请再多谈一点本季度的毛利率，这纯粹只是销量提高的结果，还是也有，呃，FSD 收入，谈谈本季度毛利率方面的增减因素。当然，关于你的 FSD 问题，呃，有少量递延收入得到确认，对本季度而言并不是特别重大，在 1000 万美元左右。关于产品利润率，嗯，你知道，我们全面看到的就是成本持续下降，实际上所有产品都是如此。上海继续取得良好进展。那里的 Model Y 成本也在相当迅速地下降，因为我们对它进行了拓展，但我们过去已经

说过，Model Y 的成本应该与弗里蒙特制造的 Model 3 成本大致相当。现在还没有完全达到，而且这也是一个有些不断变化的目标，因为弗里蒙特 Model 3 的成本在下降，Model Y 也必须随之下降。但总体上，我们看到上海的利润率表现强劲，Model Y 的利润率表现强劲，而且离目标不太远。我们看到弗里蒙特 Model 3 以及 SNX 的利润率表现强劲。所以就本季度整体而言，我认为产品方面的情况相当不错。很好，很好，谢谢。嗯，然后这是后续问题，我想问问你们的、你们在欧洲的策略，而且我认为你们总体上的策略一直是，你知道，降低成本，从而让你们可以降价，并且可以带来额外的销量。我认为这就是，你知道，我们在中国看到的

情况，你知道，使用 LFP，那，那就是一个很好的例子。那么，一旦你们在柏林提高产量，对于欧洲的定价可能会是什么样子，合理预期是什么？你们在定价方面会有多灵活，你知道，以带来，呃，增量红色积分？所以，你知道，呃，刚开始时利润率会有点低，但你知道，之后会用于红色积分，而那些积分，你知道，有助于抵消这一点。是的，但我想，针对这个问题，我总体上会说，我的意思是，我们已经有、有一段时间处于这样一种状况，需要优先决定将生产的产品运往世界上的哪些地方。你知道，这里面有不同的因素，取决于不同产品变更是在什么时候做出的、物流路线是什么样子、不同市场正在发生的不同事情

但我们正处于需要确定优先次序的状况。呃，理想情况下，我的意思是，我们正努力尽可能快地提高产量，这样我们就不会再次处于需要确定优先次序的状况。嗯，有一些……是的，我认为这回应了你问题中的意思。好的，请进入下一个问题。我们的下一个问题来自 Loup Ventures 的 Gene Munster，请提问。晚上好。呃，关于 Semi 的问题，你知道，能否请你带我们了解一下兆瓦充电器、编队行驶的开发情况，也许再谈谈你们如何看待 Tesla Semi 的自动驾驶，以及它是……你们设想它会如何影响更广泛的卡车运输行业，而不仅仅是电动汽车。嗯，实际上，Jerome，你想回答那个问题吗？是的，我们继续开发

Semi，尤其是兆瓦充电器。我们意识到，我们可能为汽车寻求的 350 千瓦左右的功率对于 Semi 来说不够，所以我们正在寻找比这强大得多的方案，基本上可以做到在你驾驶期间休息时，以同样快的速度为 Semi 充电，这样你就可以一直开到下一次休息。是的，所以不会有任何可用或有效的时间浪费在给 Semi 充电上，这就是目标。嗯，我们正在与其他各方合作，以确保有一套标准基础设施，能够，呃，为所有客户部署。嗯，是的，这可能是我目前能说的全部。是的，是的，我们不是在只……我们不是孤立地开展工作。是的，我们正努力，我们必须

发明它，因为它并不存在，你知道，但我们，我们正试图发明某种，呃，可能，呃，对所有人都有帮助的东西。是的，顺便说一下，关于Semi，就是，Semi确实会消耗大量电芯，所以它，呃，你知道，需要，你知道，比乘用车多4到6倍。非常酷，5，你知道，大约5倍，所以，嗯，如果我们受到自身限制，那么这有点，就很难提高Semi的产量，因为没有电芯，嗯，所以在将Semi提升到可观产量之前，我们需要解决电芯限制。这是Semi进展唯一真正的限制，嗯，而且，呃，你知道，我们一再发现，我们就是，我们就是不断碰到自身、自身生产限制，嗯，然后我们只是从一个口袋里拿出东西

再把它们放进另一个口袋，就是这样，我们只是需要更多电芯，这样我们就能做更多固定式储能、更多汽车，嗯，更多车型产品线。是的，我们需要更多电芯，所以这说得通。呃，有个问题，就是如果你考虑一下，你知道，你谈过机器人出租车，以及你认为那将如何影响人类的出行方式，那么你怎么看Semi长期影响货运？我的意思是，这是，呃，某种锦上添花的东西，是对你们所有进入新市场的技术的一种赞美，还是你认为这可能成为一项实质性的业务？我认为它肯定非常重要，嗯，我的意思是，真正从长期来看，所有运输都将实现自动驾驶。是的，马已经是自主的了，但所有运输都将实现自动驾驶。是的，所以也包括Semi，所以它会相当

重要，而且我们装进Semi的技术与我们装进其他汽车的技术完全相同。是的，只是更大、更大、更大，而且电机更多。对。谢谢。我们继续，下一个问题来自Baird的本·卡洛，请开始。嘿，谢谢你们回答我的问题。嘿，埃隆，你认为，我们姑且称之为老派原始设备制造商，它们最大的结构性问题是什么，嗯，或者说让它们无法振作起来并追上你们的1个或2个结构性问题是什么？然后，嗯，你，你提到了我们希望未来世界是什么样子，你设想的是只有Tesla，还是Tesla和Rivian，或者、或者、或者什么？谢谢。嗯，我确实认为还会有其他汽车公司，我不认为我们会是唯一一家，所以

我的意思是，问题在于，就像，就像其他汽车公司所做的事情，即便只看汽车领域，也只是Tesla业务中相当小的一个子集。所以，你知道，Tesla，我们，我们设计和制造，我们的垂直整合程度非常高，所以我们正在设计一座建筑，汽车的这么多部分，比其他原始设备制造商设计多得多；它们主要会求助于传统供应基地，就像我所称的目录工程，你知道，所以，嗯，这并不很有冒险精神，呃，而且，而且基本上最后就会变成所有产品看起来都一样，因为它们找的是同样的供应商。所以，我的意思是，在你继承传统部件的程度上，你也继承了传统的限制和成本结构，因此你多少需要制造新的原料、新的零部件，然后你需要，然后没有机器

来制造那些零部件，所以你必须制造生产零部件的机器。所以Tesla就像，我们的垂直整合程度可能，我的意思是，可能比其他汽车公司高出1个数量级；如果我们现在还没有达到，那我们将来肯定会达到，嗯，然后我们还，呃，我们还必须在，我不知道，报告上大约40个国家建立我们的销售、服务和分销体系，你知道，有些地方，最终会超过100个国家，而其他，呃，汽车公司并不拥有自己的销售、服务和分销。所以，你知道，它们，它们有点像，你知道，从供应基地组装零部件，然后，然后交给经销商体系。所以这就像，它不只是像，它就像把Tesla与一家汽车公司相比，就只是比较，实际上只是Tesla的一个侧面或一个维度

我们与其他汽车公司大概有10是共同的。谢谢。请进入最后一个问题。今天的最后一个问题来自Jefferies的菲利·普舒阿，请开始。嗯，是的，谢谢你们回答我的问题，我有2个。嗯，第1个问题，我想试着了解你们固定式储能的商业模式，以及你们对此的看法。我的意思是，对我来说，大致有2个方向，一个是销售硬件，这有点像成本加成业务，而我只是在想，是否存在这样一个机会，让Tesla实际上能够分享特别是公用事业公司可能实现的节省，以及像电网稳定之类的收益。几年前我能获得的关于你们澳大利亚业务的信息表明，考虑到所实现的节省

你们，你们的硬件原本可以卖得更贵。我只是想知道，你们对差额去了哪里是否有一些共同看法。是的，我认为你说的可能是对的。呃，嗯，我的意思是，RJ和扎克，你们怎么看？是的，我的意思是，我们已经在澳大利亚看到这种情况了，我们看到的是表后聚合，它向电网回馈电网服务，这实际上降低了客户的价格，也降低了电网运营商的价格。所以你正在看到这种趋势在全球发生，而且它既会出现在住宅层面，也会出现在批发层面。所以一端是Megapack，另一端是Powerwall，这两者协同工作，再加上位于其上的软件层

它，自动竞价系统，因为那，那确实将有助于通过结合使用硬件平台和软件，让电网更加高效。还有一点需要澄清，比如澳大利亚的那座大型电厂，那座大型电池电厂，我们会继续运营那座电厂并在市场中创造收入。所以，不管我们本来能以更高还是更低的价格卖掉它，我们都在继续从那座电厂赚钱。好的，谢谢。接下来我的问题是，在电池日上，你们谈到了这种电芯与车辆集成的方法，嗯，非常有意思。当我看着它、当我思考它时，看起来这意味着由 Tesla 开创、许多追随者正在采用的滑板式设计将变得

过时，还是我的思考方式不对？从长期看，它会过时，是的。但我是说，是的，我是说，从现在起几年以后，它会，它会。就目前而言，并不是说现有汽车就不再雇佣价值。只是，这个，如果你有一个，如果你有这个，如果你有，如果你有结构电池包，由电池包为汽车提供，呃，结构价值，嗯，因为，比如，那种类似于，类似于复合材料蜂窝效应的东西，也就是，你知道的，上下板之间的剪力传递，那么任何不这么做的方案都必须配备重复的硬件。嗯，它会更重，成本会更高。嗯，前后一体式铸件也是如此。嗯，我是说，我们显然，坦率地说，我们正努力像制造玩具一样制造汽车。嗯，你知道，如果你有

一辆玩具模型车，要怎么做，而且它还必须非常便宜、看起来，看起来很棒，嗯，你会怎么制造它？你会把它铸造出来。就是这么做的。用许多微小的，的冲压金属件，以复杂的方式连接起来，那会很荒谬。所以这算是一件自然而然要做的事。然后，将储能装置，也就是电池，用作结构，也是同样的道理；飞机机翼会这样做，早期的火箭也是如此。对于早期的火箭和飞机，它们，它们的气动外壳与推进剂箱或燃料箱是分开的，然后，然后他们意识到这样不合理，你必须进行集成，你必须让燃料箱呈机翼形状，比如说，你必须让推进剂箱呈火箭，火箭箭体的形状。嗯，你不会想要

把一个盒子放在另一个盒子上，基本上就是这样。呃，所以，你知道，它是，所以，多年下来，这使得燃料箱与，和机翼分离的飞机基本上不具备竞争力，机翼，机翼需要正在感受。嗯，但我不会把这看作一种，像是，像是一夜之间发生的转变，这需要几年。呃，如果，但是，但是就像我说的，随着时间推移，它只是，它，在我看来，采用不同的架构会有竞争力。非常感谢。很遗憾，今天的问答时间到此结束。感谢大家提出的所有精彩问题，我们大约3个月后再与各位交流。谢谢，再见。谢谢。女士们、先生们，今天的电话会议到此结束。感谢各位参与。[音乐]你

[Music] [Applause] [Music] so [Music] [Applause] [Music] so [Music] so [Music] [Applause] [Music] oh [Music] so [Music] bye [Music] legally [Music] so [Music] ladies and gentlemen thank you for standing by and welcome to the tesla q3 2020 financial results and q a webcast at this time all participants are in a listen only mode after the speaker presentation there will be a question and answer session to ask a question during the session you will need to press star 1 on your telephone if you require any further assistance please press star zero i would now like to hand the conference over to your speaker mr martin veeka senior director of of investor relations please go ahead sir thank you sherry and good afternoon everyone and welcome to tesla's third

quarter 2020 q a webcast i'm joined today by elon musk zachary kirkhorn and a number of other executives our q3 results were announced at about 1 pm pacific 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 press star one now if you would like to join the question queue but before we jump into the q a

elon has some opening remarks elon thanks martin all right so q3 was our best quarter in history we achieved the record production deliveries record revenue record net income uh both gap and on gap and record-free class cash flow of 1.

4 billion dollars this is really due to the amazing execution by the tesla team i could not be more proud to work with such a great group of people just really kick out performance across throughout the world of course we had battery day uh so we hosted showed our plans for how we can expand the future and improve core battery technology core cell technology at the form factor level of chemistry level and i think more significantly at the manufacturing technology level there's only a comment i've made in the past is that i think tesla's long-term competitive strength will be primarily manufacturing this is counterintuitive but i i'm quite confident this will be uh what what happens uh anyway so we presented what the team has been working on for a long

time well batteries um we wanted to step back and really rethink batteries from scratch uh first first principle thinking just look at the fundamental physics and say what uh rather than compare to uh other products and market just say from a physics standpoint if you you know what what's the limit of physics what's the platonic idea of a perfect cell and how close can we get there um and uh that was our aspiration and i think we've we've got a pretty good uh approach to it um which will only get better over time so we went through all of the engineering solutions for every important part of battery design and production um and we'll continue to iterate on that and just recursively improve the core cell and battery technology the the result we think in

you know in a few years will be batteries that cost half as much and where the capital expenditures required are a third or less of what they are today and we expect giga berlin will see our first battery cell production line at scale regarding the full self-driving beta release the autopilot team again just a really all-star team um i spent a lot of time with the with the autopilot team and there's a lot of really talented people in that team who've worked incredibly hard to make the to get the beta release out so i just really like to thank them for their their hard work um and uh it's just a it's just a very smart group of people so um i i think we're starting very slow and very very cautiously um because the world is a complex messy place and so we

we're um you know we put it out there last night and then we'll see how it goes and then uh probably release it to more people this weekend or early next week and then just gradually step it up until we have hopefully a wide release by the end of this year and of course as the system collects more data and it becomes more robust um so um it's sort of like you know how does google as a search engine get better it's because everyone is programming it by asking your questions all the time and clicking on particular links so it's got this great feedback loop and that that makes it an extremely effective search engine it's the same thing for autonomy having on the order of a million cars that are providing feedback and specifically feedback on strange corner

case situations that you just can't even come up with in simulation uh this is the thing that is really valuable it's not like the the the the the obvious stuff obvious stuff you can do in simulation um but weird corner cases uh only reality can can give you that so that's but we're able to say okay we need to train the system on this corner case situation uh and and look for examples so we can we can then uh train against those examples and improve uh some very esoteric corner case um and um also important to emphasize that this is a generalized uh neural net based approach uh there is no need for high definition maps or a cell phone connection so the the car this system is designed such that even if you have no connectivity whatsoever and you're in

a place that you have never been to before and no tesla has ever been there the car should still be able to drive just like a person that is the system that we are developing and aiming to release this year then in terms of capacity build out we're making progress on um three major factories uh we're continuing to expand shanghai significantly uh which is going incredibly well the tesla china team is just i mean incredibly good i we're super smart work hard it's like i'm always amazed by how much progress the china team makes uh it's beyond all reasonable expectations um and then we're under construction in berlin and tech and and austin um so also making good progress there um yeah it's overall going well i should make a point that for berlin and austin

um we we do expect to start delivering cars from those factories next year but because of the exponential nature of of a of the spool of a manufacturing plant especially one with new technology um it it will start off very slow at first and then then and then um become very the upper will become very large just in general manufacturing follows the s-curve and you know and i think sometimes people if they haven't spent a lot of time manufacturing kind of think that once you have a factory you can just sort of turn it on and it's at capacity but it will typically take about 12 to 18 months to reach capacity and that is a very fast a period of time especially for new technology so yeah i'd say 12 to 24 months even um so generally what i see is um the manufacturing

capacity is underestimated in the beginning um for quite some time then it's sometimes overestimated because this is an s group um it goes exponential to linear to logarithmic and it's it's actually incredibly hard thing just bringing a production plant uh to volume technology it's because you can actually think of it like you've got two first order approximation ten thousand unique uh parts of processes all of which operate on an s curve s-curve and and and if we're build with a bunch of uncertainty and you can just slide 10 000 s-curves on an x-axis and that's what bringing up a large automotive plant is like and which one is which one's the the the laggard which one's the leader it's very difficult to tell and it's constantly changing so it's really

one of the most difficult challenges i've ever seen um so let's see um in conclusion uh thank you uh all we've achieved would not be possible without the incredible hard work of tens of thousands of tesla empire employees and all people at our suppliers as well like thank our suppliers we continue to grow as fast as we can while focusing on cost control and improving quality and ultimately the the best company will be that which makes great products at an affordable price and that is uh that's our goal i think i've never felt more optimistic about the future of tesla than i ate than i do today i'd also like to thank investors who have stuck with us with us through thick and thin um this is uh i think there's there's a lot more good stuff to come all right

with that we can move to questions uh thank you liam i think uh our cfo zachary kirkland there's some opening remarks as well okay sure yeah thanks martin overall our financial health continues to rapidly improve with q3 being another great quarter on nearly all dimensions as elon has mentioned on that on on net income we achieved our fifth sequential quarter of profitability our best net income and nearly double digit operating margins the two things that are important to note to set context for q3 profitability first the regulatory credits business was stronger than our expectations and we are tracking to more than double this year compared to last second as a result in the rise of the market cap of the company the second and third tranche of the ceo

grant vested during the quarter additionally we have begun expensing one more tranche resulting in roughly 300 million of combined period expense i think it's reasonable to view the quarter excluding both these items to get a true sense of the health of the core business on automotive gross margin excluding regulatory credits it increased materially from 18.

7 to 23.

7 percent with some of our programs achieving great greater than 25 gross margin keep in mind that inefficiencies related to factory shutdowns affected our margins in q2 we continue to reduce our manufacturing and operational costs we are also seeing benefits from the ongoing upward trend of locally built and delivered cars which has increased from under 50 percent at the beginning of last year to over 70 most recently which is a core component of our cost reduction strategy we are also seeing financial benefits from improved vehicle reliability across the feet across the fleet services in other margin approved yet again driven by our used vehicle business and and efficiencies in our service operations in the energy business we achieved record storage

deployments aided by the positive reception of the mega pack and powerwall products as production and deployments grow additionally our solar deployments doubled and we're continuing to make progress on that front on cash flows our cash balance increased to 14 and a half billion which includes free cash flows of 1.

4 billion are highest yet our operating cash flows were 2.

4 billion including a 600 million benefit from working capital as we've made progress on days of receivables and inventory despite a reduction in days of payables note that the majority of our operating cash flows are driven by the strengthening of our core operations capital expenses grew to 1 billion driven by model y incidents in shanghai berlin and austin as for previous investments in model 3 shanghai and model y in fremont we're expecting these programs to have already fully paid for their respective investments by the end of this year looking forward to 2021 and 2022 we have revised up our expectations for capital spending by two to two and a half billion which we have ample liquidity and expected cash flows to fund this is driven by an increase

in in-source scope for certain factories including battery cell manufacturing as well as investments to enable greater capacity expansion in the future while we expect the return on our investments to remain very strong keep in mind that with additional scope and location specific costs the payback of these investments may be slightly longer than what we saw in model 3 in shanghai and model y in fremont financing cash flows were four and a half billion as we reduced use of our working capital lines offset by 5 billion equity rates in september note that we're currently expecting over a billion in early convert pay downs in q4 primarily associated with the 2021 conversions but also our 2022 and 2024s looking forward we remain focused on strengthening the

core fundamentals of the business we are increasing production to meet demand reducing costs including localization driving higher efficiency across the business and tightening our cash conversion cycle we've made tremendous progress on this front over the last year and a half we're also aiming to achieve our original 2020 guidance of 500 000 deliveries despite the operational interruptions earlier in the year while this goal remains a genuine challenge we believe it's possible with tight execution across the company so congratulations again to the tesla team for a great quarter and a great year i'll hand it over to rj johnson who joined tesla earlier in the year and is leading our energy business for a few comments thank you zach first i'd like to also

thank and congratulate the team on a job well done q3 was a strong quarter for the energy business and were poised for continued strong growth in energy storage and solar mega pack is going to be a large growth segment for the business and deployments will continue to expand rapidly as the product reaches full capacity we have more demand than supply through 2021 and we continue to ramp the product to match unprecedented demand across the globe through 2023 and beyond our order book is rapidly filling up through 2023 in the multiple gigawatt-hour scale large-scale solar plus storage is now more cost effective than traditional fossil fuel generation in many locations across the globe this trend will continue as we remove cost which will further displace

existing and new fossil fuel generation this is true for standalone storage as well many customers are utilizing auto bidder to maximize returns as we optimize our hardware and software with advanced real-time bidding strategies that continue to outperform the market where deployed for powerwall we see continued strong demand for residential storage as customers seek increased reliability and backup home generation we have a very large backlog of powerwall orders and we continue to invest to increase capacity to fulfill customer orders we're just now capturing the full power of customer sighted solar plus storage as customers in some jurisdictions are providing services back to the grid when they don't need to consume energy or have backup power this

has massive potential to reduce system costs and make the grid more efficient globally in the united states we lowered our residential solar retrofit price to 1.

49 cents a watt after tax incentives which is the lowest in the industry we're able to do this by leveraging our online vehicle ordering infrastructure which substantially reduces soft cost associated with sales and marketing as a result our fixed costs remain relatively flat as our volume and efficiency increase leading to increased profitability in the retrofit business we're using the same methodology across the enter the entire energy business including service to capitalize on the technology backbone of the company solar roof is especially exciting as we've gained significant experience over the last year in the installation process which is a key enabler to scale the business we've recently demonstrated our ability to complete solar roof in installation

in just one day please note this still requires one to two days to remove the existing roof and prepare it for the solar roof installation clearly there will be a range of installation times based on size complexity weather and other factors overall our reduced installation time provides a better customer experience and will enable the business to grow exponentially as scale effects allow for increased efficiency in closing we believe the energy segment is poised for a strong growth as we continue to focus on increasing scale while reducing cost to maximize profitability i want to thank the team again for their hard work and i look forward to another strong quarter ahead of us thank you very much everyone and let's begin with questions from set.

com uh the first question from retail shareholders is is tesla planning to start 4680 cell production at giga berlin at the same time as vehicle production can tesla share more information on what products will use the battery cells from the pilot line in fremont uh yeah um drew do you want to take us sure uh yeah we will incorporate 4680 design solutions into many applications in time across both energy and vehicle and we can use our our pilot production facility in fremont to support the new factory in berlin as it ramps thank you very much let's go to the next question which is um question number two from retail shareholders does tesla's tablet cell design allow for significantly higher peak charging rates does it improve the required taper curve yeah

the fundamental limitation on charge rate and lithium ion batteries is avoiding lithium plating on the anode and while the tablets architecture helps avoid overheating because it's a more power dense architecture at high continuous charge rates it doesn't change the anode plating story electro design and another material choice more directly determines the maximum charge rate and how to avoid that lithium plating problem okay thank you very much the third question from retail is would fsb be able to tr to be transferred to uh to our next vehicle or pay a transfer fee uh it would add a broad uh it would add to a brand of loyalty the same way gaming companies and cell phone companies keep you in their ecosystem by letting you transfer purchases to upgraded

hardware um yeah i think we'll we'll give it some thought okay the fourth question is what are the remaining constraints to be solved for solar roof installations to ramp significantly carl yeah i'm on the solar roof engineering and installation the biggest constraint right now in solar roof ramp is getting enough installers on board and trained and experienced we've made a lot of progress on this in in q3 and we're continuing to hire the next opportunity is improving the material flow on the job site we've talked about this a lot in the factory as well that setting up the right packaging kitting so that every every installer on the roof has the parts they need at their fingertips also we've had great response from third-party roofing contractors as they're

ramping up installations for solar roof on their customer homes which is a big source of future growth yeah i mean here's a way to think about a product in my opinion you have to say i think what do you want the world to look like when you look around the neighborhood in the future decade from now you know what do you want what products are going to make your life better what what future do you want i think a future where we've got beautiful roofs with generating energy that are tough and tougher and resilient and better in every way than a regular roof and a lab with energy that's the future we want the solar roof is a killer product this will become obvious next year thank you and the last question from retail shareholders is you recently referred to

tesla as a conglomerate of startups other than manufacturing electric cars what do you suppose will be the most valuable business units within tesla over the next five to seven years could you envision any of them ever spinning out from tesla well yeah think about this today tesla is probably there's probably in excess of a dozen startups effectively in tesla every major product line is a startup um every every new big new plant is a startup um and sometimes frankly we have to learn a lesson a few times before it sinks in um but and you know even things like service and sales are our startups other car companies oems they don't own their sales and service so we have to create our service network we have to create our sales and delivery network we have

to do this in i don't know 40 countries multiple languages something that people don't even don't really even know much about is our internal applications team that that writes the core uh technology that runs the company um we are not dependent on um enterprise software like for those who understand what this means this is a very big deal in my heart as well to the great work of the internal applications team um that they're right there at the nervous system the operating system of the company the tesla operating system uh extremely fundamental um obviously insurance is is substantial so insurance could very well be under 30 40 percent of of the the value of the cart business frankly um and as we've talked about before with a much better feedback loop

um instead of it being statistical it can be specific now obviously somebody does not have to choose our insurance um but i think a lot of people will it's just it's going to cost less and be better so why wouldn't you uh then the whole autonomy thing is a startup the computer chip was designing our computer chips for the startup uh obviously cells are as a startup designing and making our own power electronics for the drive units designing manufacturing our own motors chargers the supercharger network is a startup the thing i think that people just don't really understand about tesla is that it's it's a whole chain of startups and they're like well you didn't do that before yeah we're doing it now and i mean i think so far we have not we've maybe been

a bit slow with some of the startups but i don't think we've had any any of them fail so so far so good no plans to spend anything out that just sounds com like added complexity thank you very much let's go to interditional investor questions the question number one is as they bridge to the riled hailing network could you leverage the insurance product to give customers the ability to rent out their vehicles via via the app thereby enabling the car to make money for them so basically proprietary version of two-row we're i think we're going to focus on enabling the robo taxi system so you can just basically like that's a that's a sub that's just really quite a small subset of the overall robo taxi or robocar thing where you can have the car be autonomous

for you uh you can have the car be you know share with friends and family uh you can add or remove it from the network you can have it be entirely in the network i mean if you're an uber or left driver you could be managing you know a fleet of 10 cars um it sort of seems like a you know shepherd attending the block type of thing it's like you just get way more leverage so you know i think that that's that's sort of a week we could do that and it wouldn't be very difficult um but we we're going to just be focused on just having an autonomous network you know that has sort of elements of uberlift and airbnb thank you and the second question from institutionals is residential energy use accounts for roughly the same magnitude of carbon emissions as road

transport today's boilers and aircon units are profoundly unsexy could you elaborate on hints that hvac advances with the why it could also find use in a domestic system yeah go ahead drew i was just going to say i mean i think one of the things we focused on with the model y and now model 3 pump system was learning how to build a tightly integrated system capable of moving heat to and from anywhere really powertrain battery cabin the environment in outside ambient temperatures all the way down to like negative 20 uh c so 30c and that's definitely applicable to uh to the home's needs of heating and cooling the the home and the water in your house so certainly applicable um elon yeah absolutely um i think like the heat if what he pop in the car being able

to use the battery as both a thermal and an electric energy reservoir is very significant same thing could be applied to a home with the water heater so and the battery pack itself of course so i think there's potential for an integrated home system that canada's power generation storage heating cooling air filtration uh you know water purification in a really tight package um we don't actually have like a prototype or anything but i think conceptually that is something that would be probably good to have thank you the third question from institutionals is if meeting your long-term volume targets requires price reductions that preclude you from achieving your low double digits stated margin targets for the autos business will you still reduce prices accordingly

um well we want to make our cars more affordable and it's always important to separate out affordability from value for money um you know if if the car's car is too expensive or given products too expensive then people don't have enough money in the bank account they simply can't buy it no matter what the value proposition is so it is important to lower the prices in order to such that people can literally just have enough money to buy it i i do not think we lack for desire for our products but we do lack for affordability and so we have to improve the affordability of our products so they are not out of reach of people we want to bring them more in reach over time um but but also improve our cost of production um also you know we get hopefully a little

bit better every year sort of sometimes a lot better and in terms of margins like all of these margins are going to look pretty comically small when you factor in autonomy yeah um two things i'll add to that um without a doubt i mean we're moving forward to push as much volume as we reasonably can uh you know so elon talked through earlier kind of how the s-curve and the timeline of incremental factors looks like and so we're moving full speed ahead with as much volume as we can re reasonably move forward with but the the second comment i'd make is if you just look at the journey of the company uh over the last year and a half we have grown volumes and grown gross margins uh despite a number of price reductions over that period of time and we've kept

opex fairly stable during that period of time as well and so the key is what elon mentions here i mean we have to improve the affordability of the vehicle we have to also continue to make progress improving the cost structure of not only cogs but of opex which we've demonstrated over the last year and a half i think quite successfully and improved the value of the vehicles at the same time so in addition to reducing the cost of the car we're making the cars better and that's the formula to sell the volume that's what we're focused on thank you very much the fourth question from institutionals is at one at what point do you expect to have enough internal or external battery capacity to start ramping up stationary storage deployments again yeah we're we're

ramping up stationary storage a lot so i mean it's approximately doubling that we expect is approximately double um next year so that's pretty good um and uh hopefully we can accelerate that in years to come and approximately doubling it this year too so the growth yeah yeah i mean if you just keep doubling things pretty soon you hit the mass of the universe and we'll need to start you know turning jupiter into cells and the last question from institutionals is manufacturing is hard delays happen what contingencies do you have in place to ensure that bottlenecks that you might encounter while renting internal cell production will not preclude you from the from your ability to hit your model y production volume targets in berlin and texas yeah so i think

it's we've tried to de-risk uh 2021 so that there's um you know almost no dependency on our internal cell production uh it's very very small uh the internal cell production will help us ramp in 22 but we're not dependent on it for 21.

and to de-risk the manufacturing system itself that was one of the reasons why we located our pilot production facility here in fremont so we can rapidly iterate on manufacturing scale-up challenges provides rapid feedback to the design of both the product and the equipment yeah and i know our pilot line is pretty big as plot lines go it's uh it would be in the top 10 cell factories on earth i believe yeah that's true a sub-scale one yeah thank you very much and now we can go to questions uh from analyst offline cherie thank you again we remind you to please ask one question and one follow-up question our first question will come from rod lashay with wolf research please go ahead hi everybody um just wanted to ask about uh the targets from your your battery

day um looked like you you could be approaching something like 20 million vehicles by 2030 if you you hit those goals um could you maybe share with us a little bit more of a midterm target like where would you be by 2025 and and maybe uh give us a little bit more insight into the investment required to get there just to put that extra two to two and a half billion dollars per year in into context yeah i i mean i think the the tricky thing with trying to predict things midway through an exponential is that you you know if if things are doubling every year or even just growing 50 then if you shift one you know plus minus one year it has a huge effect on the the number um is so then it sounds like wow you either massively exceeded or massively uh undershot

but it's actually what's going on isn't a a giant s-curve so a whole bunch of pretty big escrows that integrate into a gigantic escrow um so that's why it's difficult to predict the middle and i'm not saying for sure we would hit 20 million vehicles but it just seemed like a good goal to have because that would mean that we're replacing one percent of the global fleet per year um and it's so it's difficult to say that we're you know are we really changing the world if we're not um switching out one percent of the global uh fossil fuel vehicles i mean it's i'm not sure that we can make that argument unless we unless we change at least one percent of the vehicles per year so that that's where the two the 20 million vehicles for a year comes from it's like

one percent of two billion vehicles which is the the global fleet currently the global feed is growing uh so it'll probably be a bit bigger in the future um so okay you know it's hard to say it's like i'm gonna map an s cove to a 20 million dollar a 20 million vehicle target in 2030 and move the slider around and see what that number looks like that will give you about as much insight as we have okay um and just secondly um you know if solid state lithium metal were to become viable you just maybe just pass along your perspective on that and would you be able to repurpose most of what you're putting into place uh for changes in technology yeah i mean answering the first part um the the self-production system is fairly agnostic on anode cathode electrolyte

separate that kind of thing it's we could change and we will change and upgrade the all aspects of the cell so [Music] we could for example make iron prostate or nickel manganese or something like that um it's quite adaptable um so i wouldn't i wouldn't say it's just too much more about the the lithium like a pure lithium anode is um i mean not it's not as as it's it's not as great as it may sound um you know uh yeah um but volumetrically you're you're not gaining all that much uh yeah because if you've got nothing on the so it's on the outside you've got and just played out lithium it's got it's got to go somewhere so you could have room for it yeah yeah lithium is less volumetrically dense in the pure metal form than it is intercalated into silicon

so it's kind of hard to understand but that that's that's the truth and and then as we showed in our presentation the total anode cost that we're talking about is only a dollar or two per kilowatt hour so the value of like removing the end of material isn't super high either so yeah i totally agree elon yeah exactly um but if it should turn out that if your lithium anode is the right move that would simply that would be no problem right agreed all right thank you thank you next next question please our next question will come from colin rush with oppenheimer please go ahead um thanks so much guys yeah you're talking about insourcing um a number of processes can you talk a little bit about which processes you're you're moving in house and the equipment

that you're planning to make yourself uh versus uh some of the equipment that you'd be buying from other folks sorry are you talking about the for cell manufacturing or something or well manufacturing for sure as well as on the molds uh they talked about but you know in terms of the catbacks budget that you mentioned earlier talking about uh you know the number of processes coming in house um and which equipment pieces you're planning to make yourself versus buying okay well i mean tesla is absolutely vertically integrated compared to other order companies or basically almost any company the we have a massive amount of internal manufacturing technology that we that we build ourselves we literally make the machine we in fact we we design so like okay what

is the thing we want to make design the machine that will make that thing then we make the machine this is what this this makes it quite difficult to copy tesla which we're not actually all that opposed to people copying us but it's quite difficult because you can't do catalog engineering you can't just i'll pick up the supplier catalog i'll get one of this machine one of that machine bingo i'm now on tesla um you have to there is no catalog what cat you know so we made the machine that made the machine that made the machine it could no no we don't we don't want to get carried away here but um and quite frankly we would like to outsource less um that would be great um because then if we could outsource if we could take something that we're doing and outsource

it then we could take those people and and we're going to have them do something else um but um yeah it's like we just make a crazy amount of machinery internally um this is puzzles are not well well understood um if you walk around the factory you can get a sense for it and um yeah i don't mean i don't know if this is like a smart move but i i just know like hey if we're trying to make progress and nobody's got the machine that we we need we got to make it so that's what we do um okay and then the second question is really around you know the balance sheet has really changed you guys have run awfully lean and you've got a lot more a lot more cushion at this point and obviously there's opportunities around insurance to drive out some of the cost of ownership

as well as financials you know how are you guys thinking about that as you move into trying to accelerate demand a little bit and your ability to to leverage your access to capital and enable some of those uh those other products um yeah is that changing from from where you've been in the past yeah i mean something like insurance is a good example of a product that's basically made by our internal applications team um so we just we made the insurance product and connected to the car look at the data calculate the risk this is all internally basically internal software application um it's pretty low capital but has very high return i i don't know if we're trying to spend money at the fastest rate that we can possibly spend it and not waste it that's our

current plan and so it's quite hard to spend money without wasting it um or just you know we're like really just trying to not waste too much of it frankly we will certainly waste some of it uh but trying to waste not waste too much of it this is very difficult um but otherwise we just try to spend money as quickly as possible in a way that is sensible and yields more value than it costs thank you our next question will come from adam jonas with morgan stanley please go ahead hey elon um question on lidar if lidar were totally free would you want to use it in your cars near term would that tech significantly helped tesla in the training of your neural network for fsd i mean totally free probably not i think probably i i think even if it was free we wouldn't

put them on okay um let's follow up then um amazon appears to be investing and building an autonomous or electric transport network of some ilk through some organic investments but also you know zuke's aurora ribbon etc what advice would you give jeff bezos in his endeavor well i don't know how much he cares about this but i guess he sure is investing a lot of money in it um i mean i think he also needs to vote for if you care about autonomy you need to focus on vision because the entire road system is based on passive optical so you have to solve passive optical for to have a self-driving system that is a generalized solution and once you solve past optical you've solved self-driving so why bother with anything else thanks elon thank you welcome to the

next question please our next question will come from pierre farragu with new street research please go ahead um hey thanks a lot for taking my question a very simple one you haven't talked that much about like the cyber truck today uh and i was wondering uh how like the ramp of that product is uh looking like when we when we should see [Music] the product hitting the road and how fast you expect to rent volumes can i have a quick follow-up sure um i was in the studio actually on last friday with franz and team just going over the just sort of sort of some improved improvements to the cyber truck you know generally with you know i tell you we we really aim to make the car that is delivered better than the car that is uh unveiled um because always drove

me crazy you know car companies would unveil these awesome looking cars and you're like great i can't wait till i make that and then they have the car they actually make this like much worse and that is just it's like really disappointing so man we always want to make the car that we deliver better than the car we unveil and that's the goal with the cyber truck so um there's like a lot of a lot of small improvements compared to what was unveiled um it's you know i think it's going to be better than what we showed and um yeah it's it's cool like it it's going to be made in um in austin so this can you know depending on completing that factory and there are obviously new technologies with the you know high hardness uh kind of armored exoskeleton this is

never been done before so there'll be there'll probably be some challenges along the way um and obviously something something that's extremely high hardness and difficult to scratch or dance is also difficult to form so it's there's some manufacturing challenges there that's why it's so plainer although it also looks good i think from a cleaner standpoint um yeah if we focus well we will be able to do some cyber truck deliveries uh towards the end of next and towards the end of next year yeah so it's difficult to predict um i'd say there's probably a lot of deliveries in 22 and some deliveries towards the next year if things go well okay and now i'm trying to get a sense of how next year is going to look like so if i look at your production capacity at

the end of this year it's going to be almost 850 000 units on an annualized basis and you're going to increase capacity in shanghai open berlin you say today you would open austin as well so you're probably going to end the year above the million units and and so am i right thinking next year we should expect you to deliver uh like somewhere like between 840 000 and 1 million cars during the year yeah we'll provide uh guidance on 2021 after next earnings call i mean it's it's in that vicinity um yeah you're not far off thank you thank you thank you our next question will come from dan levy with credit suisse please go ahead hi uh good evening thank you just i wanted to start with a question on the quarter um zack maybe you could give us a sense of uh

where directionally model y and china model 3 gross margin was in the quarter relative to fremont model 3 and then just a little more color on the gross margin in the quarter was this just purely a function of higher volume or was there also uh fsd revenues just puts and takes on the gross margin in the quarter sure on your question about fsd uh there was a small amount of deferred revenue released is not particularly material in the 10 million dollar range for the quarter with respect to product margins um you know what we're seeing across the board is just continued reduction in cost really across every product shanghai continues to make good progress there model y cost is also coming down quite quickly as we branch that but we've got it in the past

that model y cost should be roughly equivalent to the model 3 built-in fremont cost it's not quite there and it's also a bit of a moving target as model 3 fremont cost comes down model y also has to come down with that but we're generally seeing strength in in shanghai margin strength in model y margins and not too far off of it we're seeing strength in model 3 fremont and snx margins so overall for the quarter i think it was quite a good story for the products great great thanks um and then this is the follow up wanted to ask about your your strategy uh in europe and i think your strategy generally has been you know you cut cost so that allows you to cut price and you can generate the extra volume and i think that's you know what we're seeing in china

you know the use of lfp that's that's a good example so once you ramp in berlin what's a reasonable expectation of what pricing might look like in europe and how flexible are you going to be on pricing you know to generate uh incremental red credit so you know uh margins out of the gate that are a little low but you know that are then used for the red credits that you know help to offset that yeah but what i think i would say generally to the question is i mean we've been in a position for for some time now where we are prioritizing where in the world we send our production and you know there's different factors to that depending upon when different product changes are made what the logistics routing looks like different things going on in different markets

but we are in a position where we need to prioritize uh ideally i mean what we're trying to do as fast as we possibly can is get production up higher so that we're not in a position of needing to prioritize again um there are yeah i think that gets at the sentiment of your question okay let's go to the next question please our next question will come from gene munster with loop ventures please go ahead good evening uh question on the semi you know if you could just walk us through the development of mega chargers platooning and maybe just how you think about autonomy for tesla semi and what it's how you envision it impacting the broader trucking industry beyond just ev well actually jerome do you want to ask that yeah we continue the development of the

semi and in particular mega chargers we realized that the 350 kilowatt or or or so that we might be looking for cars is not going to be enough for semi so we're looking for something much more uh powerful than that that can achieve essentially charging as fast uh the semi as as you during a break during your driving time so that you can drive until the next break yeah so there is no usable or efficient time wasted for charging uh the semi that's that's the goal um we're working with uh other parties to make sure that there is a standard infrastructure that will be able to uh be deployed uh for all customers um yeah that's probably all i can say at this point yeah yeah we're not working just we're not working in isolation yeah we're trying to we have to

invent it because it doesn't exist you know but we're we're trying to invent something uh that could be uh helpful for everybody yeah just as a note on the sort of semi the the semi does consume a lot of cells so it's uh you know caught you know four to six times more than a passenger vehicle very cool five you know there's five ish times so um if we are self-constrained it is it kind of it's difficult to ramp up the semi because there's no cells um so we need to solve the cell constraint before ramping semi to significant volume that's the only real constraint on semi-progress um and uh you know just we found over and over again we were just we just kept running into self self production limitations um and then we're just taking things out of one pocket

and putting them in another this is it we just need more cells so that we can do more stationary storage more vehicles um more vehicle lines yeah we need more cells so make makes sense uh a question just if you think about you know you've talked about robo taxi and how you i think that's going to impact kind of humans moving around how do you think about semi impacting freight longer term i mean is this uh something that is nice to have and a compliment to all of your tech getting in new markets or do you think that this could be a material business i think it's very material for sure um i mean really long term all transport will go autonomous yeah horses are already autonomous but all transport will go autonomous yeah so including semi so it'll be pretty

significant and the technology that we're putting in semi is identical to what we're putting in the other vehicles yeah it's just big bigger bigger and more motors yep thank you let's go our next question will come from ben callow with baird please go ahead hey thanks for taking my question hey elon what do you think the biggest structural issue is with the let's call it old school oems um or one or two of the structural issues for them not getting their act together and catching up with you and then um you you mentioned what you we want the world to look like ahead of us what do you envision that is like just tesla or tesla and rivian or or or what thanks well i do think there will be other car companies i don't think we're going to be the only one so

i mean the thing is that like like what what uh other car companies do even in the auto segment is quite a small subset of what tesla is so you know tesla we we design and build we're very vertically integrated so we're designing a building so much of the car so much more of the car than other oems who will largely go to the traditional supply base and like i call it catalog engineering you know so um it's not very adventurous uh and and basically it ends up like all the products end up looking the same because they're going to the same suppliers so i mean to the degree that you inherit legacy components you inherit the legacy limitations and cost structure and so you kind of need to make new ingredients new parts and then you need then there's no machine

to make those parts so you have to make the machine that makes the parts so tesla's like we probably i mean we might be in order of magnitude more vertically integrated than other car companies if we're not now we certainly will be um and then we also uh we also have to create our sales and service and distribution system in i don't know something on the report 40 countries you know somewhere it'll be over 100 countries whereas the other uh car companies do not own their sales and service and distribution so you know they they kind of you know assemble parts from a supply base and then and then hand them to a dealer base so it's just like it's not just like it it's like comparing tesla to a car company like just comparing just really one facet or dimension

of tesla we're like maybe 10 in common with other car companies thank you let's go to the last question please and our final question today will come from philly pushua with jeffreys please go ahead um yes thank you for taking my questions i've got two um the first one for me is try to understand your business model for stationary storage have your thoughts on it i mean there are two broad directions for me one is selling hardware which is a bit of a cost plus business and i'm just wondering if there's an opportunity where tesla could actually share into the savings that utilities in particular could be able to achieve and like grid stabilization the information i was able to get on your business in australia a few years ago suggests that given the savings

that are achieved your your hardware could have been sold at a higher price i'm just wondering if you have some shared views on where the difference is going yeah i think you're probably right about that uh um i mean rj and zach what do you guys think yeah i mean we're already seeing this in australia where we're seeing behind the meter aggregation that is providing grid services back to the grid which effectively reduces the price to the customer and reduces the prices for the grid operator so you're seeing this trend happening across the globe and it's going to be at the residential level as well at the wholesale level so mega pack on one end and then power wall on the other side those two working together in tandem and the software layer on top of

it auto bidder being that that really is going to help make the grid more efficient using the hardware platform and software together and just a point of clarification like that the large power plant in large battery power plant in australia like we continue to operate that power plant and generate revenue in the market so whether we could have sold it for more or less like we're continuing to make money off of that power plant okay thank you and the following question i had was during the battery day you talked about this cell vehicle integration um approach it's very interesting and when i look at that when i think about it it looks like this means that the skateboard design the tesla pioneered and many of your followers are using is going to become

obsolete or am i not thinking about the right way it will be obsolete long term yes but i mean yes i mean several years from now it's it it for now it's not like existing cars stop hiring value it's just that this that if you have an if you have the if you have a structural pack where the pack is contributing uh structural value to the car um because of like the sort of like the composite honeycomb effect of you know shear transfer between an upper and lower plate then anything that doesn't do that is going to have to have duplicate hardware um it's going to weigh more it's going to cost more um and then the same goes for the front and rear castings um i mean we're clearly frank we're trying to make the car like you'd make a toy um you know if you had

a toy model car how would and then it's got to be real cheap and look look great um how would you make that you cast it that's how it's done it would be absurd to make it up of tiny little pieces of of stamped metal uh joined in complex ways so it's sort of a natural thing to do and then the same goes for using the energy storage the battery as a structure which is done for aircraft wings and for rockets with the early rockets and aircraft they they had a separate aeroshell from the propellant tanks or fuel tanks and and then they realize that doesn't make sense and you've got to integrate you've got to have your fuel tank in wing shape you've got to have your propellant tanks in the shape of the body of the the rocket for example um you don't want to

put a box on a box basically uh so you know it's so which over many years made it like basically uncompetitive to have an aircraft that has separate fuel tanks uh for from the wing the wing the wings need to be feeling um but like i wouldn't think of this as like it's like an overnight transition it's several years uh if but but then like i said over time it just it would be competitive to have a different architecture in my opinion thank you very much unfortunately this is all the time we have for the q a today i appreciate all your great questions and we'll speak to you again in about three months thank you goodbye thank you ladies and gentlemen this concludes today's conference call thank you for your participation [Music] you