Tesla(US:TSLA)2025-07-23 22:30Financial Data and Key Metrics Changes - The total automotive revenue increased by 19% sequentially, despite total deliveries only improving by 14% [35] - The cost of tariffs increased around $300 million sequentially, with approximately two-thirds of that impact in automotive and the rest in energy [36] - Operating cash flows increased sequentially, resulting in $146 million of free cash flow [39] Business Line Data and Key Metrics Changes - The energy generation and solar business margins improved sequentially, while deployment reduced primarily due to the ramp of power deployments at higher margins [36] - The margins for service and other businesses improved sequentially, primarily due to higher profits from supercharging and improvements in insurance and service center profitability [38] - The production of the new Model Y ramped up at all factories, and the rollout of robotaxis service in Austin was initiated [30][31] Market Data and Key Metrics Changes - Model Y became the best-selling car in Turkey, Netherlands, Switzerland, and Austria, indicating strong international demand [8] - The company expects to expand its autonomous ride-hailing service to cover half the US population by the end of the year, pending regulatory approvals [6][7] Company Strategy and Development Direction - The company is focusing on expanding its robotaxi service and aims to increase the service area in Austin significantly [4][6] - There is a strong emphasis on autonomy as a key differentiator, with plans to enhance the full self-driving (FSD) experience and increase adoption rates [9][34] - The company is investing heavily in AI and robotics, with expectations to scale production of the Optimus robot significantly in the coming years [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, stating that if the company continues to execute well, it could become the most valuable company in the world [27][28] - There are concerns about the impact of the repeal of the IRA EV credit and tariffs on near-term business performance, but management believes long-term investments in AI and energy will pay off [31][40] Other Important Information - The company is working on regulatory approvals for autonomous services in various states, including the Bay Area, Nevada, and Florida [6][10] - The company has seen a marked improvement in FSD adoption rates in North America since the launch of version 12 [35][100] Q&A Session Summary Question: Can you give insight into how robo taxis have been performing? - The robo taxis have been performing well in Austin, with plans to expand the operating region significantly [42] Question: What are the key technical and regulatory hurdles for unsupervised FSD? - Unsupervised FSD is expected to be available for personal use by the end of the year in certain geographies, with a focus on safety [44][45] Question: What specific factory tasks is Optimus currently performing? - The Optimus design is expected to be finalized soon, with production ramping up in early next year [49][50] Question: Can you provide an update on the development of more affordable models? - Production of lower-cost models started in June, with a focus on maximizing production without negatively impacting revenue [53] Question: How will the elimination of tax credits for solar projects affect sales? - The sales pipeline is diversified, and while the recent bill was not favorable, solar projects are still expected to be built due to necessity [66] Question: Can you comment on FSD subscription trends? - There has been a 25% increase in FSD adoption since the launch of version 12, with efforts to educate customers on its benefits [100][102]