To The Moon

$Tesla Motors(TSLA)$ Q3 Earnings Highlights:

• EPS (non-GAAP): $0.66 vs. $0.72 est

• EPS (GAAP): $0.53 vs. $0.64 est

• Revenue: $23.35B vs. $23.9B est

• GAAP net income: $1.85 vs. $2.1B est

• Total GAAP gross margin: 17.9%

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Tesla Energy gross margin was 24.4% in Q3, up 33% vs Q2 2023 and up 163% YoY.

$Tesla Motors(TSLA)$ has shared a chart revealing their cost of goods sold in recent quarters.

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Editor’s comments: This is probably the key chart for $Tesla Motors(TSLA)$ 's Q3 2023 ER: COGS savings were directly transferred to customer discounts, pulling the lever to increase volumes via price point.

$Tesla Motors(TSLA)$ now has a record $26.1 billion in cash.

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Tesla installed an average of 3.6 new Supercharger stations globally in Q3. There are now a total of 5,595.

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Tesla opened up 61 new service/store locations globally in Q3.

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Below are the Elon Musk’s comments on $Tesla Motors(TSLA)$ earnings call :

1. Elon: AI has the potential to make Tesla the most valuable company in the world by far.

2. Elon Musk on Cybertruck: "There will be enormous challenges in reaching volumes production and cash flow positive. This is simply normal; This is our best product ever, but it'd going to require immense work to get cash flow positive at a price that people can afford."

3. Elon Musk: Cybertruck will take 12-18 months before it is a significant positive cash flow contributor.

4. Elon Musk says Tesla has over 1 million Cybertruck reservations.

5. Elon Musk on how many Cybertruck deliveries for 2024: The ramp is going to be extremely difficult. There's no way around that; If you want to do something innovative, it is extremely difficult because there is nothing to copy. I think we'll end up with 250k Cybertrucks per year. I don't think we'll reach that next year, but maybe in 2025.

6. Elon Musk on Tesla: 4680 cell production in Giga Texas increased 40% QoQ. Scrap is down 40% QoQ. Cybetruck cell with 10% higher density than Model Y cell started production in Texas. This quarter we converted to 100% Cybertruck to simply and focus the factory. Phase 2 of the 4680 is under construction at Giga Texas. Target is to start producing in late 2024.

7. Elon Musk on Giga Mexico: "We're laying the ground work to begin construction; But we want to get a sense of what the global economy is like before we go full tilt on Mexico factory. I am worried about the high interest rate environment."

8. Elon Musk: We are on track for the Model Y to be the best selling car on earth (in volume terms) this year.

9. Elon Musk says Tesla is already advertising and that there is something to be gained on the advertising front. He cited cost and high interest rates as a big issue.

10. Elon Musk on why FSD price was dropped: Well we just wanted to make it more affordable so more people could try it. Over time the price of FSD will increase proportionate to its value.

11. Elon Musk has No comment on new Model 3 launch timing for North America.

12. Elon Musk declined to give any Tesla Bot updates. Said updates will be shared online.

13. Elon Musk: We dug out our grave with Cybertruck. It's one of those special products that comes along only once in a long while; High volume low cost smaller (next gen) vehicle is actually much more conventional; The manufacturing approach is revolutionary and i think it'll be quite a fast ramp.

14. Elon Musk: I think there's very significant price elasticity. To be totally frank, if our car is the same cost as a Toyota RAV nobody would buy a RAV4. Or at least they'd be very unlikely to. A lot of these EV incentives are actually very difficult for the avg person to access; They can't front $7,500 for even 6 months.

15. Elon Musk says Tesla is definitely building the factory in Mexico and that it'll be great. It's just a matter of timing; We'll start initial phases of construction next year.

    
    

What were your thoughts on Tesla's Q3 earnings results? And Elon’s comments?