Tesla’s (NASDAQ:TSLA) Q3 2023 earnings name comes on the heels of the corporate’s Q3 2023 Replace Letter. Tesla remained worthwhile in Q3, regardless of a lower in supply and manufacturing, in addition to a discount within the firm’s common promoting worth. Nonetheless, Tesla posted revenues of $23.35 billion and a 7.6% working margin in Q3 2023.
Tesla did present some key data in its Q3 2023 Replace Letter. For one, the Cybertruck’s first supply occasion has been introduced for November 30, 2023, and the cumulative miles of Tesla’s FSD Beta program additionally rose to 525 million. Tesla Vitality turned out to be the darkish horse for the quarter with its file power storage deployments of 4.0 GWh.
The next are reside updates from Tesla’s Q3 2023 earnings name. I can be updating this text in actual time, so please maintain refreshing the web page to view the newest updates on this story. The primary entry begins on the backside of the web page.
17:30 CDT – And that wraps up Tesla’s Q3 2023 earnings name! This name is sort of heavy on data, and Elon Musk was surprisingly cautious. Contemplating the circumstances throughout the globe, nonetheless, that is comprehensible. Hopefully, Tesla does survive the storms which are coming.
Thanks a lot for staying with us for one more earnings name reside weblog. We hope to see you once more within the subsequent one!
17:30 CDT – Wells Fargo asks for clarification about Elon Musk’s earlier remark about Tesla not going full tilt on Giga Mexico until the economic system is powerful and if Tesla’s development may be achieved with out the plant. Musk notes that Tesla can be making a manufacturing unit in Mexico. It’s simply going to be a matter of timing. Tesla continues to be engaged on Mexico, however the firm is paying shut consideration to rates of interest.
Plus, Giga Texas, regardless of its scope immediately, continues to be only a tiny fraction of the land that Tesla owns. So technically, if push involves shove, Tesla can simply give attention to Giga Texas and develop the complicated much more. “Tesla is a really succesful ship, however even a terrific ship in a storm has challenges,” Musk stated, including that if rates of interest come down, then Tesla ought to speed up.
“And I apologize if I’m maybe extra paranoid than I ought to be. As a result of that may even be the case as a result of I’m. I’ve PTSD from 2008 — 2017 via 2019 aren’t excellent both. That was very robust going. So you realize, the auto business can be type of cyclic. It’s as a result of individuals are likely to hesitate to purchase a brand new automotive and if there’s uncertainty within the economic system,” Musk stated.
17:23 CDT – Cannacord asks a query about Tesla’s price per automobile coming down within the subsequent quarters. Is that this extra on scale, price reductions like giga casting, or different issues? The analyst additionally asks if radar was included in some Mannequin Y in China.
Elon Musk famous that Tesla has not included radar in Mannequin 3 and Mannequin Y automobiles from Giga Shanghai. Tesla is experimenting with this within the Mannequin S and Mannequin X, however there are not any plans to do that for the Mannequin 3 and Mannequin Y simply but.
Musk did word that Tesla is trying into the usability of radar by way of accident prevention. He acknowledged that automobiles that had radar earlier than had a radar unit that truly generated extra noise than sign. The CEO shared some feedback a few Tesla-designed radar.
“A Tesla-designed radar is a high-resolution radar that has some potential to be helpful,” Musk stated.
17:15 CDT – Elon Musk briefly mentioned the “Marie Antoinette vibes” in automotive pricing. To focus on this, Musk mentioned his disdain for a work-from-home system, which he famous was unfair to those that need to be of their office for his or her jobs.
17:14 CDT – A follow-up query about worth elasticity was requested. Elon Musk highlighted that common shoppers are involved with funds. He additionally reiterated the significance of Tesla’s give attention to lowering month-to-month funds.
“I feel there’s very vital worth elasticity. To be completely frank, if our automotive is identical price as a Toyota RAV4, no one would purchase a RAV4. Or no less than they’d be impossible to. A variety of these EV incentives are literally very troublesome for the common individual to entry; They’ll’t entrance $7,500 for even 6 months,” Musk stated.
17:10 CDT – Wolfe Analysis asks if there’s a option to convey the pace of enchancment in Tesla’s enterprise. He additionally asks for any replace on the timing of Tesla’s next-generation automobile. The Tesla crew famous that that is an evolving factor, and the corporate is repeatedly seeking to enhance.
As for the timing of the next-generation product, Elon Musk famous that Tesla won’t be offering this data presently.
17:06 CDT – Pierre Farragu asks a query about FSD pricing and if Tesla may evolve the system’s pricing because it improves. Elon Musk famous that the economics of a completely autonomous automobile are fairly astounding. “The economics of the system are simply insanely optimistic,” Musk stated. “We’re a {hardware} firm with software program margins.”
17:02 CDT – Analyst questions start! Truist begins with an inquiry concerning the Cybertruck and its ramp to vital quantity. The analyst asks if an analogous ramp ought to be anticipated for the next-generation platform.
Elon Musk famous that Cybertruck’s manufacturing will ramp in 18 months. So, whereas the Cybertruck’s ramp will cowl three calendar years, it’s actually simply 1.5 years. The crew additionally famous that the Cybertruck has distinctive complexities affecting the manufacturing ramp.
“We dug our personal grave with Cybertruck,” Musk joked, to some laughter from the crew. “The Cybertruck has numerous bells and whistles.”
Musk famous that Tesla’s next-generation platform is sort of extra standard in that sense. There are merely not as many new issues with the next-gen automobile. Tesla is doing every little thing potential to simplify the next-generation automobile to realize ranges per minute by way of manufacturing. Musk additionally famous that the next-gen Tesla is “utilitarian however cool and exquisite.”
16:56 CDT – A query about Optimus was requested, and if among the robots may be deployed subsequent 12 months. Musk famous that at this level, Tesla will not be but prepared to debate updates with the Optimus program. However Optimus is bettering, and it’s bettering quick.
A closing investor query was requested about FSD’s worldwide rollout. Musk famous that rules in numerous nations dictate the supply of FSD outdoors the US. He additionally admits that he has been overly optimistic about Tesla’s FSD progress.
16:54 CDT – A query about FSD’s worth drop was requested. Musk notes that Tesla merely desires to make the system extra inexpensive. The present worth is a brief low, Musk acknowledged. “Nicely, we simply wished to make it extra inexpensive,” he famous.
A follow-up query was requested about when Tesla will settle for authorized legal responsibility for FSD. Musk joked that everybody already assumes Tesla has authorized liabilities. The crew additionally highlighted that L3 techniques just like the Mercedes-Benz Drive Pilot are very restricted, whereas Tesla’s FSD system is holistic. “It’s child AGI,” Musk stated.
16:52 CDT – A query about Tesla’s development charge was requested. Elon Musk notes that Tesla is already one of many fastest-growing automakers immediately. As for the Robotaxi, Musk famous that the automobile will certainly be non-driven. He highlighted that he’s certainly very enthusiastic about autonomy, which is fairly superb in its personal proper. That is particularly notable since Tesla’s work on autonomy will pave the best way for Optimus.
16:47 CDT – An inquiry about Giga Shanghai, Berlin, and Mexico was requested. Tesla notes that for Mexico, Tesla is working with manufacturing unit design. Tesla is engaged on new manufacturing line for next-generation automobile at Giga Mexico. Elon Musk states Tesla is laying the bottom work for development at Giga Mexico. “We simply wish to get a way of the worldwide economic system” earlier than Tesla goes all-in.
Elon notes that Tesla is promoting. He acknowledges that promoting is beneficial, but when individuals can’t afford Tesla’s automobiles, promoting gained’t do a lot good. Musk emphasizes his issues over rates of interest and the significance of Tesla’s give attention to lowering month-to-month funds.
16:44 CDT – A second investor query requested about an replace on the corporate’s 4680 cell initiative. Tesla notes that scrap is down 40%, and manufacturing is ramping. Giga Texas is now Tesla’s fundamental 4680 facility.
16:43 CDT – Investor questions start. First up is the corporate’s expectations for Cybertruck in 2024. Elon Musk notes that it’s troublesome to foretell this because the Cybertruck is just so totally different. It could be a distinct factor if the Cybertruck have been only a copy of one other pickup truck, in fact. “The extra uncharted the territory, the extra unpredictable the result,” Musk stated.
Musk did state that Tesla would finally hit about 250,000 Cybertrucks per 12 months. This can in all probability be achieved someday in 2025.
16:41 CDT – Tesla’s new CFO, Vaibhav Taneja, discusses the corporate’s funds. He mentions “regardless of some manufacturing unit shutdowns, our price per automobile decreased to roughly 37,500.” He additionally discusses that Tesla is concentrated on lowering prices and investing sooner or later as the corporate navigates the years forward.
16:38 CDT – Musk additionally reaffirmed Tesla’s 2023 steering of 1.8 million automobiles.
16:37 CDT – Elon highlights that whereas the Cybertruck is being launched this quarter, expectations have to be set with regard to the automobile’s manufacturing ramp.
“There can be huge challenges in reaching volumes manufacturing and money move optimistic. That is our greatest product ever, however it’d going to require immense work to get money move optimistic at a worth that individuals can afford.
“I simply wish to mood expectations for the Cybertruck. It’s a terrific product, however financially, it would take a 12 months to 18 months earlier than it’s a vital money move contributor,” Musk stated.
16:36 CDT – Elon notes that Tesla Vitality and Service now contribute over half a billion {dollars} in quarter revenue. It’s changing into one of many firm’s most worthwhile companies, and it’s rising quick.
16:32 CDT – Oh boy, that was a technical concern. Elon Musk is already talking. He’s discussing Tesla’s progress with autonomy. He notes that he’s seeing vital promise with FSD Beta V12, which is an end-to-end answer. “We are going to proceed to speculate closely in AI growth,” Musk stated.
16:30 CDT – It’s time! The Q3 2023 earnings name ought to be beginning any minute now. The music’s stopped, so we’re simply ready for the precise name to start.
16:29 CDT – And right here’s the music! I ponder if Tesla will begin on Elon time?
16:15 CDT – Good day, everybody, and welcome to our reside weblog of Tesla’s third-quarter earnings name! As anticipated, Tesla’s income and EPS took successful in Q3, thanks in no small half to the corporate’s lower in automobile deliveries. Tesla was nonetheless worthwhile, although, in order that just about proves that an EV enterprise may constantly generate profits.
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