$TSLA Key highlights from earnings:
• Tesla has announced nearly half of Tesla vehicles produced in Q1 were equipped with a lithium iron phosphate (LFP) battery, containing no nickel or cobalt.
• Tesla says that they acs as the insurance carrier, which means that we are the underwriter as a fully integrated insurance provider and bear financial risk.
• Tesla says they are the 2nd largest insurer of Teslas in the state of Texas, and possibly by the end of this quarter will be the largest.
• Austin made Model Y body structure. has 1,600 fewer welds
• Tesla aiming to release FSD Beta to all U.S. FSD customers before the end of this year
• Tesla is putting significant efforts into in-house cell production, raw material procurement and supplier diversification
• Expansion of production capacity is core to decision making
• Tesla's margin 32.9% operating margin 19.2%
• Texas will produce 2170 Model Y with non structural packs later this year
• Tesla says Energy storage deployments increased by 90% YoY in Q1 to 846 MWh, mainly driven by strong Powerwall deployments.
• Tesla installed 2,159 new Supercharger connectors in Q1 2022. That is an average of about 24 per day.
• Automotive gross margins headed to 40%
• P/E ratio has dropped from 196x to 133x
• $3.3B net income for this quarter. $2.2B free cash flow
• Tesla has reduced their total debt excluding vehicle/energy financing from $5.1B last year to just $88M currently.
• Shanghai could again show record output in 2Q if Tesla "pulls rabbit out of a hat" but 3Q/4Q would be substantially higher
• Insurance is growing well
• The robot business will be worth more than the car business, and more than FSD
• Tesla is working on a new vehicle which is a dedicated Robotaxi highly optimized for autonomy that will reach volume production in 2024. No steering wheel or pedals.
• A Robotaxi ride will cost less than a subsidized bus or subway ticket
• Tesla is working on a way to be able to be flexible on cathode material in response to market conditions
• Tesla will be recycling aluminum cast wheels from legacy gasoline car sand throwing that in the melting pot for aluminum cast body for the Model Y.
• Model 3 will be casted as well in due time
• Mining and refining lithium is appears to be limit factor; Actual lithium content in a cell is only 2-3%; Will have some exciting announcements in the months to come.
•Tesla still in early early stages of journey. 5% towards 2030 goal
• Reasonable shot at 60% production over last year. Just under 1.5 million units
• Texas & Berlin will ramp production faster than in Shanghai
• Tesla has higher ASPs in backlog, which should help offset any headwinds (inflation, supply disruption, etc).
• No discussions currently underway for incremental compensation for Elon Musk
• Tesla expect to expand Giga Nevada; By far the biggest increase in output will be from Giga Texas.
• Cybertruck: The simplicity of structure is significant vs a traditional truck; 20-30% less parts (compared to a traditional truck.)
• Tesla will do what needs to be done to not slow down the transition to sustainable energy
• Do not anticipate more price increases unless costs increase is more than expected. If it doesn’t rise as much as tesla expect - may actually cut prices a bit
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