Tesla(US:TSLA)2026-01-28 23:32Financial Data and Key Metrics Changes - In Q4 2025, automotive margins, excluding credits, improved sequentially from 15.4% to 17.9% despite a 16% decrease in deliveries, primarily due to a favorable regional mix with more deliveries in APAC and EMEA [21] - Total gross margin ended the quarter at over 20.1%, a level not achieved in the last two years, despite lower fixed cost absorption and over $500 million in tariffs impacting results [24] - Net income was negatively impacted by a 23% depreciation in Bitcoin holdings and unfavorable foreign exchange impacts [25] Business Line Data and Key Metrics Changes - Automotive gross profit remained flat sequentially, while FSD adoption improved, reaching nearly 1.1 million paid customers globally, with 70% being upfront purchases [21][22] - Energy segment achieved record gross profit for the quarter, ending the year with nearly $12.8 billion in revenue, reflecting a 26.6% year-over-year growth driven by high deployments of Megapack and Powerwall [22] - Services and Others margin declined from 10.5% to 8.8% due to higher employee-related costs, although there was an improvement in margins from the Supercharging business [23] Market Data and Key Metrics Changes - Record deliveries were noted in smaller countries like Malaysia, Norway, Poland, Saudi Arabia, and Taiwan, contributing to a larger backlog than in recent years [20] - Continued strength in demand was observed in the rest of APAC and EMEA, with the energy team achieving high growth rates [20][22] Company Strategy and Development Direction - The company is making significant investments in AI, robotics, and battery supply chains, with a focus on transitioning to an autonomous future [4][7] - Plans to end production of Model S and X to repurpose factory space for Optimus robot production, aiming for a long-term goal of 1 million units per year [7][13] - The company is transitioning to a subscription-based model for FSD, which may impact automotive margins in the short term [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for universal high income driven by advancements in AI and robotics [2][3] - The company anticipates significant growth in the energy sector and plans to ramp up solar cell production to 100 gigawatts per year [12][13] - Management acknowledged the challenges posed by increased low-cost competition and policy uncertainties affecting margins [22] Other Important Information - The company expects capital expenditures to exceed $20 billion in 2026, driven by investments in multiple factories and AI infrastructure [26][27] - The company has over $44 billion in cash and investments, which will be utilized for funding the upcoming investments [81] Q&A Session Summary Question: What is Tesla's view on the future global car sales and its impact on EV strategy? - Management indicated that the future is autonomous, and the introduction of Cybercab will significantly change the market size and mix, with expectations of increased production volumes [28][29] Question: Are there plans to launch new models for different price segments? - Management confirmed ongoing efforts to launch less expensive models and expand globally, aiming to provide a premium ride experience through Cybercab [34][35] Question: What are the current bottlenecks for robotaxi deployment? - Management noted that scaling the robotaxi service has been a learning process, with unsupervised service recently launched in Austin, and emphasized the importance of infrastructure in supporting growth [41][44] Question: What is the current status of Optimus robots in production? - Management stated that Optimus is still in the R&D phase, with basic tasks being performed in factories, and significant production volume is not expected until later in the year [49][50] Question: What is the strategy for chip production and potential external sales? - Management highlighted the need for a Tesla Terafab to ensure sufficient chip production capacity, emphasizing the importance of domestic manufacturing to mitigate geopolitical risks [66][70]