Hi, everybody. Welcome back to the show. This is stage 0. My name is Will Walden. I'm your host. And in today's episode, we're going to be showing you a clip of Donald Trump and Elon Musk. Now, Elon, in this clip explains how Doge is doing and what they've done to uncover some secrets and some fraud and how much money they've recovered for the government.
And then after that, it's Donald Trump explaining to his cabinet how he views Elon Musk. Now, the second or the first part of this shows that Donald Trump doesn't. I think he likes him in a way like he likes him as a person.
But he says something that you'll find a little bit, I wouldn't say shocking, but it's something that we didn't expect over here at Stage Zero. And that is that he says that he doesn't really need Elon. And you'll listen to the clip and then let me know in the comments if you have comments on
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All right, here's Elon talking to Trump's cabinet and then Trump talking about Elon. Notice what Trump says about Elon. Good afternoon, everyone, and welcome to Tesla's first quarter 2025 Q&A webcast. My name is Travis Axelrod, Head Investor Relations and I'm joined today by Elon Musk, Deva Taneja and a number of other executives. Our Q1 results were announced at about 3:00 PM Central Time in the update deck being published of the same link as this webcast.
During this call, we will discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could differ materially to a number due to a number of risks and uncertainties including those mentioned in our most recent filings with the SEC. During the question and answer portion of today's call, please limit yourself to one question and one follow up.
Please use the Raise Hand button to join the question queue. Before we jump into Q&A, Elon will be providing an update. Elon. Hello everyone. Well, it's never a dull moment these days and thanks for sure every day is going to be exciting As some people know, there's been some blowback for the time that I've been spending in government with the Department of Government
Efficiency or DOGE. I think the work that we're doing there is actually very important for trying to rein in the insane deficit that is leading our country, United States, to destruction. And the Doge team has made a lot of progress in addressing waste and fraud. The natural blowback from that is those who were receiving the wasteful dollars and the fortunate dollars will try to attack me and those team and anything associated with me. So but then I am really left with two choices.
Should we just let the waste and fraud continue? And I was continuing at it to grow at a really unsustainable pace that was bankrupting the country or to fight the waste and fraud and try to get the country back on the right track. And I, I believe the right thing to do is to just fight the waste and fraud and get the country back on the right track and working together with the President Trump and his
administration. Because if the ship of America goes down, we all go down with it, including Tesla and everyone else. So I think this is this critical work. Now, the protest that you'll see out there, they're very organized.
They're paid for. They're they're obviously not going to say it meant that the reason that they're protesting is because they're receiving fraudulent money or that they're the recipients of wasteful digest, but they're going to think they come up with some other reason. But that is the the real reason for the protests. The actual reason is that is that those receiving the waste and fraud wish to continue receive receiving it. That is the real thing that's going on here, obviously.
So now that said, I, I do think there's, you know, the, the, the, the large slug of work necessary to get the village team in place and working in the government to get the financial house in order is mostly done and I think. Starting probably in next month, May, my time allocation to DOGE
will drop significantly. I'll have to continue doing it for, I think probably the remainder of the president's term just to make sure that the waste and fraud that we stop does not come roaring back, which we'll do if, if it has the chance. So. So I think I'll continue to spend, you know, a day or two per week on government matters or as long as the president would like me to do so and as long as it is useful.
But starting next month, I will be allocating far more of my time to Tesla. And now that the the major work of establishing the Department of Government efficiency has done so at Tesla, we've gone through many, many a crisis over the years and actually been through many near to many near death experiences. Like we're probably we're on the rabbit edge of death at least and maybe a dozen times. It's been so, so many times. This is not one of those times.
We're not on the rugged Japan, not even close. So, you know, there are some some challenges and I expect that this year will be there'll probably be some unexpected bumps this year. I remain extremely optimistic about the future of the company. The future of the company is fundamentally based on large scale autonomous cars and and large scale being large volume vast numbers of autonomous
humanoid robots. So the the value of the company that makes truly useful autonomous humanoid robots and autonomous useful vehicles at scale at low cost, which is what Tesla is going to do is staggering. I continue to believe that Tesla with excellent execution will be the most valuable company in the world by far. But that's an important if we must execute well. But if we do execute well, I do, I think Tesla will be the most valuable company in the world by far.
It may be as valuable as the next 5 companies combined. So there'll be a few bumps along the road before before that happens. I said I think on the last earnings call that you know the well we'll start to see the prosperity of autonomy take effect in a material way around the middle of next year. We still expect, we expect to have these be selling fully autonomous rights in June in Austin as as we've been saying we're now several months.
So that that's continued. But the real question from financial standpoint is when does it really become material and affect the bottom line of the company and start to be a fundamental part of the, of the, of the, when does it move the financial needle in a significant way? That's probably around the middle of next year. So it can happen next year. And then once it does stop, move the move the financial needle in a significant way, it will really go exponential from there.
So that's I'd encourage people to look beyond like the, you know, some sort of bumps and potholes of the road immediately ahead of us. Left your gaze to the bright shining, you know, citadel on a hill. I don't know some Reaganesque imagery and that's where we're headed and not, not, not too distant future like I said and
the next year. So let's see with respect to supply chain risk, something that something that Tesla has been working on for several years is to localize supply chains does actually make sense from a cost standpoint, from A and from a logistics risk standpoint is to have the supply chains be at least located on the continent in which the car is built. And so we are the least accompanied, the least affected car company with respect to tariffs, at least in most respects.
I mean, it remains to be seen. Now tariffs are still, yeah, tough on a company where margins are still low. But we, we do have localized supply chains in North America, Europe and China. So that's that puts us in a stronger position than any of our competitors. And undoubtedly I'm going to get a lot of questions about
tariffs. And I, I just want to emphasize that this, this, the tariff decision is entirely up to the president of the United States. I will weigh in with my advice with the president, but he, he, he will listen to my advice, but then it's up to him, of course, to make his decision.
I, I've been on the record many times as saying that I believe lower tariffs are generally a good idea for prosperity, but this decision is fundamentally up to the elected representative of the people being the president of the United States. So, you know, I'll continue to advocate for lower tariffs rather than higher tariffs, but that's all I can do.
So now, now let me walk you through why I'm so excited about the future of Tesla. So first of all, autonomy, the team and I are laser focused on bringing robo taxi to Austin engineering unsupervised autonomy will first be solved for for for the model Y in in Austin. And then actually we should parse out the term robotic taxi or robo taxi and just generally like what's the the cyber cab?
Because we've got a product called the cyber cab and then but any any Tesla which could be an S3X or Y that is autonomous is a robotic taxi or robotaxi. It's very confusing. So the vast majority of the Tesla fleet that we've made is capable of being a robotaxi or robotic taxi.
And as we regarding from once we can make the halt the system work where you can have paid rides fully autonomously with no one in the car in in one city that that that is a very scalable thing for us to go broadly within whatever jurisdiction allows us to to operate. So because what we're solving for is a general solution to autonomy, not a city specific solution for autonomy.
Once we make it work in a few cities, we can basically make it work in all cities in that in that legal jurisdiction. So if it's once we can make it based work in a few cities in America, we can make work anywhere in America. Once we can make work in a few studies in China, can make can work anywhere in China, likewise in Europe, limited only by
regulatory approvals. So this is the advantage of having a generalized solution using artificial intelligence and the an AI chip that tells the design specifically for this purpose, as opposed to very expensive sensors and high precision maps of a particular neighborhood where that neighborhood may change or often changes and then the cost stops working. So we have a general solution instead of a specific solution. Yeah.
And regards to optimists, making good progress on optimists, we expect to have thousands of optimists robots working in Tesla factories by the end of this year doing this for work. And we expect to scale optimists up faster than any product I think in history to get to millions of units per year as soon as possible. I I think feel confident in getting to 1,000,000 years per year in less than five years,
maybe four years. So, but 20-30 I felt confident in predicting 1,000,000 Optimus units per year and it might be 2029. So let's see with respect to energy, energy business is doing very well. The Megapack is enables utility companies to output far more total energy than would otherwise be the case. When you think of the the energy capability of a grid, it's much it's much more than it's a total energy output per year is.
If power plants could operate at peak power for all 24 hours as opposed to being at half hour or sometimes 1/4 power at night, then you could double the energy output of existing power plants. But in order to do that, you need to buffer the energy so that you can charge up the something like battery pack at night and then discharge into the grid during the day. So this is a a massive unlock on total energy output of any given
grid over the course of a year. And utility companies are beginning to realize this and are buying in our megapacks at scale. So at this point, a GW class factory is quite a common thing. So with many orders in the offer for GW and beyond batteries and we expect the energy, the stationary energy storage business to scale ultimately to terawatts per year. So very, very good numbers.
Now Q1, you know, first quarters of a year are usually pretty tricky because it's usually the worst quarter of the year because people don't want to go buy a car in the middle of winter during a Blizzard. So, and this so we picked Q1 as like a good quarter to do a cut over to the new version of the Model Y and we changed production of the world's best
selling cars. Worth remembering the Model Y is the best selling car of any kind on earth with a 1.1 billion unit per year output of a single model. And we did this changeover at the same time in factories all across the world. So congratulations to the Tesla team on an amazing job in pulling off what is a very difficult transition. So yeah, it's a, it's really
that was very impressive work. So yeah, in conclusion, while there are many near term headwinds for us in the border industry, the future for Tesla is brighter than ever. The value of the company is delivering sustainable abundance with our affordable AI powered robots. So this, this, I like this phrase, sustainable abundance for all. If you say like, what's the ideal future that you can imagine, that's what you'd want. You'd want abundance for all in a way that's sustainable.
It's good for the environment. Basically, this is the happy future. If you say what's, what's the happiest future you can imagine? One which is that would be a future where there's sustainable abundance for all. Closest thing to heaven we can get on earth, basically. So thank you again to the Tesla team for all their efforts of the challenging time and look forward to continuing to lead the team to great success in the future. Great. Thank you very much, Elon.
Before we move on, Vaibhav has some operating remarks as well. Thanks, Elon. As Elon mentioned, in Q1, we achieved something which has never been undertaken in the automotive industry of updating all our factories for the best selling car in the world all at the same time. And this is this. People don't understand this was not a small feat. We're not aware of anybody else being able to do the best selling car all at once within 1/4 and that too hitting all the timelines which we had
established at the beginning. So when big kudos to the team for making this happen. Additionally, we also hit a record gross profit for energy storage business in the quarter. Now getting back into the business, there's been a lot of speculation as to the reasons for decline of our vehicle deliveries in the first quarter. We had previously guided that we will be updating all factories and this would lead to several weeks of lost production, which did happen.
As per the Ripper effect of the change is not having enough new Model Y available in most markets for people to see and experience till the last few weeks of the quarter. Additionally, the negative impact of vandalism and unwarranted hostility towards our brand and our people had an impact in certain markets. Despite this, we were able to sell out legacy Model Y in US, China and a few other markets
within the world. And again, you know, just so that people understand, we were producing the legacy Model Y till middle to end of February and we switched over and we were able to still sell out within that period. So again, big achievement by all the people at just start to make
it happen. We've been extremely, we have a very, extremely competitive vehicle lineup which with most vehicles going through a recent update and after that advances in FSD, you have a personal chauffeur which can take you almost anywhere under supervision. There are numerous stories shared by customers ranging from how it has improved their daily commute, to providing mobility customers with disabilities, to giving older customers the ability to travel comfortably and independently.
Not only is FSD supervised safer than a human driver, but it is also improving the lives of individuals who experience it. And again, this is something you have to experience and anybody who has experienced just knows it and you know, we've been doing a lot lately try and get those stories out at least on X so that people can see how other people have benefited from this.
Now coming into some of the financial stuff, auto margins declined sequentially primarily due to the reduction the total number of deliveries, lower fixed cost absorption due to factory change awards and lower regulatory credit revenues, offset slight by a slight increase in pricing due to the launch of new Model 1 despite incentives which we had to sell legacy Model 1. Energy storage business like I said before has achieved yet another milestone of great
highest gross profit in the quarter. This was despite, you know, sequential decline in deployments. The importance of this business, as you know mentioned is really profound, especially in this environment because you know, if in order for grids to work properly with the demands from AI and all this, you need some more stability. And this is by far the simplest and best solution which we are aware of which can help do this. And we've also developed certain unique solutions to help our
customers to achieve this. Additionally, you know on the Powerwall side, we've been selling the new Powerwall 3 and you know it's been received with very good reception from customers. And to the extent that we are currently supply constraint on services and other margins, they were slightly down sequentially primarily because of the pressure on our used car business and insurance business.
Note that we continued our journey to improve profitability in our services and position business through better label product today. As previously discussed, our operating expenses continue to increase sequentially primarily due to our AI related initiatives including Optimus and also constant development for our vehicle programs including cyber Caps, SEMA and cheaper models.
These expenses flow through R&D. We believe even in the current environment it is the right strategy making investments in these areas to position us for the long term. These increases were offset by decreases and the CNA from changes in our micro level program. Other income reduced significantly on a sequential basis. The primary reason was Bitcoin mark to market loss in Q1 versus gain in Q4 resulting in a 472 million drop. The remainder of the change is
because of FX management. With the adoption of the new mark to market standard for Bitcoin, we expect increased volatility in other other income in addition to the FX
reputability. I know with tariffs is the hottest topic which people talk about and it has various impacts to our business on as Elon mentioned, you know on the vehicle business, we've been on this journey of regionalization for years, specifically in the US Model Y has been rated the most American model made car on cars.com made in America index
three years ago. This is part is of the all the work which the team has been doing over the years and to the extent that today, you know, if you look at our vehicle line up in US, we're about approximately on a weighted average basis 85% USMCA compliant. So like Elon said, this definitely gives us a bigger edge as compared to our other OEMs in terms of managing the tariffs.
But we're not immune because when the 230 Section 232 auto tariffs become effective in May which includes Canada and Mexico and Canada and Mexico has been part of our regionalization study, they will have an example of profitability. And I know research modelling on this impact has been up about couple of 1000 people, which is pretty much in line with what
we've been forecasting. The impact of tariffs on the energy business will be outside since we so much LFP battery cells from China. We are in the process of commissioning equipment for the local manufacturing of LFP battery cells in the US. However, the equipment which we have can only service a fraction of our total installed capacity at like later on we've also been working on securing additional supply chain from non China based supplies but it will take
time. Also note that you know mega fact irrespective of all the impact on US from from our energy from tariffs on the energy business, we do have manufacturing China which just started operations in Q1 and that our that that should take care of our business outside of US. There's also an important impact of tariffs on our capital investments.
I know this is going to sound counterintuitive since in order to own onshore manufacturing or expand lines, we have to bring equipment from outside the US because there is not that much capacity in the US and the current trade environment, you know, such equipment being brought in, is subject to the. Expenses bringing in from China right now.
Exactly. And and the reality is that China has the basic one which has the most capacity to provide this our CapEx guidance inclusive of model tariffs. Even with the optimization we have tried to do, it is forecasted to be still in excess of 10 billion this year and we are still evaluating what more to do on this one. To summarize, we have near term challenges in our business due
to tariffs and bad image. We think our strategy of providing the best product at a competitive price is going to be a winner and this is the reason we are still focused on bringing cheaper models to market soon. The start of production still planned for June. Additionally, the advancement in FSD related features including pilot robotaxi launch in Austin later this year should help create a new head of demand. I would like to thank everyone at Tesla and our customers.
Fantastic. Thank you very much, Eva. Now we will move on to investor questions. We will start with questionsfromsay.com. First question is what are the highest risks, highest risk items on the critical path to robotaxi launch and scaling? Is Ashok Yeah we've got a shock all on sure. Well just just talked by the disambiguate the Cybercam from robotaxi. So the when will the Teslas because the Teslas that will be fully autonomous in June in
Austin are probably model wise. So that is, that's, that's currently on track to, to be able to do paid rides fully autonomously in Austin in June and, and, and then to be in many other cities in the US by the end of this year. It's very difficult. It's difficult to predict the exact ramp sort of week by week and month by month, except that
it will ramp up very quickly. So it's going to be like some basically an S curve where it's very difficult to predict the intermediate slope of the S curve, but you kind of know where the S curve's going to end up, which is the vast majority of the Tesla fleet being autonomous. So that's why I feel confident in predicting large scale autonomy around the middle of next year.
But yeah, certainly the second-half of next year, meaning I break that there will be millions of Teslas operating autonomously, fully autonomously in the second-half of next year. Yeah, it does seem increasingly likely that there will be a localized parameter set of that sort of, you know, like that, especially for places that have say very snowy weather, like say if you're in the Northeast or something like this, you can think of it. It's kind of like a human.
Like, you know, if you you could be a very good driver in California, but are you going to be also a good driver in a Blizzard in Manhattan? You're not going to be as good. So there is actually some value in you're still drive, but your probability of an accident is higher. So there's, it's, it's increasingly obvious that there's some value to having a localized set of parameters for different, you know, different regions and, and localities.
But this is the output that the nice staff category. It's not the required category really. The car is just very much like a human. It's, it's digital neural Nets and cameras and humans operate with biological neural Nets and eyes. And so the same strengths and weaknesses will be present or, you know, a digital neural net and cameras versus a biological neural net and eyes. Ashok, you'd like to elaborate
on that? Yeah. And speaking to the location specific models, we still have a generalized approach and you can see that from in our deployment of FSD supervised in China, where with this very minimal data that's like China specific, the models generalize quite well to completely different driving styles. That just like shows that the a based solution that we have is
the right one. Because you know, if you had gone down the previous rule based solutions or like more hardcore HD map based solutions, it would have taken like many, many years to get China to work. You can see those in the videos that people post online themselves. So the generalized solution that we are pursuing is the right one that's going to scale well. And you can think of this like location specific parameters that you don't need to ask a
mixture of experts. And if you're sort of like familiar with the A models and Grog and others, they all use this mixture of experts to sort of like specialize the parameters to specific tasks while still being general. This makes the the model to use limited amount of compute to solve for the reliability of tasks that it has to solve in terms of addressing the question that asks for you know, what are the critical things that we need to get right?
One thing I would like to note is validation. Self driving is a long tail problem where there can be a lot of edge cases that only happen very, very rarely. Currently we are driving around in Austin using our QA free, but then it's like super rad to get interventions that are critical for a void XC operation. And so you can like go many days without getting any single intervention. So you can't easily know whether you're improving or regressing
in your capacity. And we need to build out sophisticated simulations including neural network based video generation that's not happening in the background to make sure that we deliver a safe product and we are able to measure our safety even though we can't just exceed we're driving around the block or something like that. Yeah. I mean, very basic terms, if that if we're seeing an accident every 10,000 miles, well then you have to drive 10,000 miles on average before you get an
accident or an intervention. So it's like, OK, now imagine, I mean, we must be really, it must be very waked up by the sheer number of Teslas doing some. It's in in Austin right now. We're like, what? It's going to look pretty bizarre. Some people are chasing. Yeah, there's just always a convoy of Tesla's going, going well, just going all over to Austin in circles.
But yeah, as I just can't emphasize this enough in order to get figure out long tail things, you if it's one in 10,000, that's that's one in 20,000 miles or one in 30, though now you know, the average person drives 10,000 miles in a year. So now try to compress that test cycle into a matter of, you know, a few months. That means you need a lot of cars doing a lot of driving in order to compress that ward. Just do do in a matter of a month what would normally take someone a year.
Yeah. And I would just also add that, you know, if you haven't looked at those videos coming out of China, people are. Oh yeah, those videos are amazing. Yeah, they're putting it to real test. I mean, they're the dark roads, frankly, I think. The Chinese consumer might be the most romantic consumer. And I actually customers in China are awesome. They have a lot of fun with the cars. I saw one guy take a Tesla on autonomous on a narrow dirt Rd. yes, across like a mountain.
And I'm like still a very brave person. And I said this driving along on the road with no barriers where makes a mistake, he's going to plunge through his doom. But it worked. Great. Thank you. And if if the question was on Cyber cab itself, we're we're in B sample validation now. Yeah, Yeah. We should ask that question too.
Yeah, we have our first. Like big builds coming at the end of this quarter within Q2 and then you know, in the coming months they'll start to large scale, you know, installation of all the equipment in Giga, Texas with, you know, still on schedule for production next year. Yeah. And I just want to also clarify because I think people don't understand the thing that there's no new building being built and where is Cyber Cab going? Oh, it's in the game. It's. Literally the same.
Factory. Yeah, yeah. If everything is it's happening and people don't know it's just happening upstairs in all along lines while we're still building the Model YS and cyber trucks every day. Yeah, yeah. It's worth noting that the, you know, the the Tesla Gigafactory in Austin is 3 times the size of the Pentagon, including the garden. Yeah, including the Ground 0 garden. So, you know, good. Because of the Pentagon. Like this spelling used to look big, but then you won't.
Great. Thank you very much. The next question is when will FSD unsupervised be available for personal use on personally owned cars? Before the end of this year, not necessarily. I say with within the US like like we do want to test like we're at Tesla, we're absolutely hardcore about safety. You know, we go to great lengths to make the safest car in the world and have the lowest accidents per mile. And so and look, if you just live lost.
So we want to be very careful. So it's so and we want autonomy to be definitively safer than manual driving. So it's not enough that it just be as safe, it needs to be meaningfully safer than if it's cars manually driven. So and we want to confirm that there's not something it. We just want to be cautious with the rollout. We don't want to jump in at the deep end with an army.
So with that said, I think we should people should we should be able to have have it work in several studies later this year for personal use. So you know, the acid test being you should be able to can you go? Can you go to sleep in your car and wake me to your destination? And I'm confident that will be available in many cities in the US by the end of this year. Great.
Thank you very much. The next question is, is Tesla still on track for releasing more affordable models this year or will you be focusing on simplified versions to enhance affordability similar to the rear wheel drive Cybertruck? Yeah, We're still planning to release models this year. As with all launches we're working through like the last minute issues that pop up, we're knocking them down one by one at
this point. I would say that ramp maybe might be a little slower than we had hoped initially, but there's nothing, you know, just kind of given that turmoil that exists in the industry right now, but but there's nothing that's blocking us from starting production within the next within the timeline laid out in in the opening remarks. And I will say, it's important to emphasize that, as we've said all along, the full utilization of our factories is the primary
goal for these new products. And so flexibility of what we can do within the form factor and, and you know, the, the design of it is really limited to what we can do on our existing lines rather than building new ones. But we've been targeting the low cost of ownership. Monthly payment is the biggest differentiator for our vehicles. And that's why we're focused on bringing these new models with the, you know, the lowest price to the market within the
constraints I just highlighted. Great. Thank you very much. The next question is does Tesla see robo taxi as a winner take most market And as you approach the Austin launch, how do you expect to compare against Waymo's offering especially regarding pricing, Geo fencing and regulatory flexibility? Well, OK, the issue with with Waymo's cars is that cost way more money Rosha, but that is
the issue. You know, they cost very expensive, made in low volume Teslas are, you know, I don't know, probably cost 1/4 of 20% of what, what, what way more costs and, and made in very high volume. So, you know, ironically, like we are the ones that made the bet that a pure AI solution with cameras and what do you the car actually will listen for sirens and that kind of thing is the
right move. And we decided that that expensive sensor suite is the way to go, even though Google is very good at AI. So I'm running and you know, it is worth noting that Tesla is both an incredible AI, you know, AI software team and AI hardware chip design team prospect from nothing. They didn't require anyone or just both it. So yeah, it's really, I mean, I don't see anyone being able to compete with Tesla at present.
I'm sure that will change eventually, but at least as far as I'm aware, Tesla will have, I don't know, 99% market share or something ridiculous. That 90 something percent at least I don't know, at least some of them might change. But you know, if you if we have millions of cars deployed next year and unless others have millions of cars deployed like we'll have unless we're blocked by regulatory situations, it
won't be long. I mean, in a few years, why 10 million autonomous cars on the roads and, you know, and, and counting I. Mean the the other thing which people forget is like, we're not just developing the software solution, we are also manufacturing the cars. Yeah. And like you know what like way more hands they're taking cars then trying to put. Way more money. We, we don't do that. So that that definitely gives us a big peg up.
And like Elon said, we already have a big existing fleet which hopefully with the software update could become autonomous. With the software update bid will become autonomous. To be clear, the model wise that we're talking about in being autonomous in Austin in June are the modelized we're model wise we make currently there's no change to it. I. Think people don't appreciate that the car which they can buy today? The car that they have or. The car they have is capable of,
yeah, these kind of things. In fact, it does Dr. autonomously from the factory to the end of line every car. Yeah, so in the US through. The tunnel, the model wise, everything. Right. Yes, exactly. We have It is being put to to use. It's it's, it's doing useful work fully autonomously at the factories. As a truck was mentioning the cars drive themselves from end of line 22 where this was being picked up by a truck to be to be
taken to a customer. And I am confident also that later this year the first Model Y will drive itself all the way to the customer. So from our probably from a factory in Boston and our one in here in Fremont, CA, I'm confident that from both factories we'll be able to drive directly to a customer from a factory. School delivery. Yeah, literally goes from the end of line and drives themselves to your house. It's important to note in the factories we don't have
dedicated lanes or anything. People are coming in and out everyday, trucks delivering supplies, parts, construction, you know. And people can film it. By the way, you can see this from the road like it's uncovered. Exactly. And there's videos, people take videos online and anyone who wants to go see it can just drive past our Fremont factory and see the autonomous cars driving themselves.
And they drive themselves and they put themselves in the exact right spot to be picked up. Yeah, the logistics yard is right there in the open. Yeah. We don't move it again to another. Lane, but they go, they go to a specific spot, spot, spot. Yeah, yeah. So that that's just a routine like everyday thing. Great. Thank you very much. The next question is can you please provide an update on the unboxed method and how that is? Progressing. Sure.
It's progressing, absolutely. As I mentioned just a minute ago, like it is the basis for our cyber cat manufacturing
process. It's really what we changed in order to allow the low cost of production and also get the Super high levels of automation, you know, really levels of automation that are sort of unheard of in vehicle manufacturing scales, but not something that you know, you when you see it be produced, you'll, you'll, you'll think of in terms of like, wow, that's how the car has been built for 100 years. It's really something we've
changed in the past year. We've been like focusing on a lot of key development areas like marrying these large sub assemblies together in a precise way, in an accurate way. We've also de risked things like corrosion of, of uncoated aluminum structures, you know, the ceiling across the seams of the vehicle and when you marry several components and we've even done early crash testing and we've proven that like, you know, it's, it's going to be just as safe as every other
carbon build. And so like we're as you know with all that combined, we kind of go into the builds that we have at the end of this quarter for the for the Cyber Cab product and that's the next real big test of full scale, you know, integration of the unboxed process. And yeah, that's kind of where we are. So you'll see them intestinal on the test roads in a couple of months. Yeah, although the line won't be obviously at this rate initially.
Initially I the the this is a revolutionary production system. I'm not sure what the right word is. Unboxing sounds like something like when you get your phone can. You open it up. Yeah, you have like a pleasant experience when you take your phone out-of-the-box, but which of course is nice, but this is my favorite revolutionary than that. This is this is a very profound reimagining of how to make cars in the 1st place. No cars made like this anywhere
in the world. The factory is the product as much as the car is the product. So it's really just the first principles approach to manufacturing that will ultimately allow us, I think to, I'm trying to think, I'm confident, ultimately allow us to achieve a cycle time in a unit every 5 seconds or less of a single line. And we want to incorporate some of these for testing it into our existing production lines as well to progress with the wine
cyber truck already. So this is something I've been thinking about for, for a long time. And I've, I've sort of, I've been thinking about this for a long time and it's kind of, it's, it's not a crazy thing like like a car every 5 seconds may sound like it's coming out like bullets, but actually it's coming out at walking speed. It's like a meters, a meter a second.
So this is like we're still far away from caring about the aerodynamic drag of the manufacturing line, you know, because you're you're still at 3 miles an hour type thing, you know, every 5 seconds sounds crazy, but it's 3 miles an hour what we're talking about. So yeah, you can run away from it basically. But that's still by far the fastest line on Earth, you know, And it's like half hour many half order many like fun. What's like messing the line? I don't know if it's like about the.
Shanghai phase two and. That's us 33 seconds, yes, we're the fastest, right? I would think so we think, we think we're the fastest at 33 seconds in our Shanghai factory. But but this, this would be, you know, 6 times faster or seven times faster amounts. So yeah, I mean, it'll be slower
than that first. But the point is that like when you, when you fully optimize the design and operation of the next generation factory that we're building right now, the 5 second cycle time or less is the design is capable of it.
You know, So if you, you know, like when you, when you go through like a radical new architecture, you go from like being like in a, I mean, I'd say like probably in particular as an A+ on, on a moderately, you know, an advanced but still traditional, traditional car production system, sort of they're really doing about as good as possibly as possible to do within a conventional scenario. So trying to get much below, you know, sort of below like 30
seconds, extremely difficult. But if not and you start getting into sort of impossible where you just, you have to be fast that a human could possibly move. So then the autonomous line, it really just needs to be robust, moving really fast. And that's where you get to some 5 seconds. But we'll so but we'll start off with getting AC and instead of an A getting AC and a new architecture, but then the the potentials there over time to move that up to an an A+ within an A+ architecture.
Great. Thank you very much. The next question is how is Tesla positioning itself to flexibly adapt to global economic risks in the form of terrorists, political biases, etcetera? As Ilan said, you know, we've been the spicing team been at at
for a while. We continue to mitigate global economic risks like tariffs and political biases by regionalizing parts supply near its factories in North America, Berlin and Shanghai. For example, in North America, our high volume vehicle programs have over 85% North America content and Shanghai vehicles have over 95% local content. Berlin has similar levels of regionalization as North American when you exclude the battery and we are working on regionalizing the battery as well.
This is a pre pandemic strategy that we accelerated post pandemic through supply diversification, dual sourcing, vertical integration, advanced analytics and local partnerships to ensure supply chain resilience and production stability. Having said that, we are not 100% insulated and these tariffs are higher on our low volume platforms than the high volume ones. Yeah. In fact, there's no more vertically integrated car company in Tesla.
I mean, we're take about it most buddy, integrated car company since you know, Henry Ford back in the day when they're doing mining iron and stuff and growing rubber trees. So like we're not growing rubber trees and mining iron. Yeah, but we are, we have both today at a lithium refinery in South Texas and it's the I think the biggest lithium refinery outside of China, I think. Is that right? Yeah, I think so. But it has it's output potential would be the biggest one thing refinery has.
Yeah. And we've got space to expand it if we need to build more, right. So and then we've got the cathode refinery in Austin next to the next to the gig factory. We're going to figure out what to do about the anode. This is an ongoing subject of discussion. Best, the best of all possible worlds would be figure out how to have no anode test, anode test part being no part. That's, that's the dream of the lithium batteries to be anode,
not have an anode. But either way, we, we better have the anode, the cathode and the lithium and the electrolytes and the separator to make a cell. But but you know, there's no other car company that is building lithium refineries and cathode refineries. We're ridiculously vertically integrated and that and that's our best position to protect against supply chain disruptions. Yeah. You want to talk about progress in the.
Yeah, certainly for in ourselves we've, you know, we've multi sourced every component and we have, you know, every part coming from at least two different countries large, which is and that we started this, the supply chain team and the engineering team worked together on this for the last couple of years to to put that together. It's not something we did in a couple of months, you know, this is years of work. So we're, you know, we're in a good position to to the
advantage of that. And the and the insourcing of of lithium and and cathode, they're the two most critical parts of the battery that's, you know, run in that backyard and and we're totally insulated from the oil. It needs to be an operation, operation. We also make our own cells, by the way. So cell production, if you took this, this, you know, this, you make the anode, the cathode, the lithium, the electrolyte separator, the can. And then you got to put all that
together in the cell factory. And there are entire companies that all they do is produce cells, but they don't do the other stuff. They don't refine lithium or the cathode or you know, so our cell production is is going quite well. And I think we're are we, we're currently sort of the lowest cost per kWh, yeah, in the others for our all cells we purchase in North America. Yeah. So it's all those cost to us. Yeah. So we have the lowest cost per
kWh all things considered. So the Tesla cell is the most competitive cell, yeah, for a kWh putting to a car. If it's if the Tesla sell it's lower cost, then it's the supplier sell. Yeah, yeah. And the, the plan that's here is to really build off that base. You know, getting to lowest cost is it's it's the hardest challenge for so many battery. You know, it's relatively easy to build a flashy product that does one thing well. To build something at high volume and low cost is super
difficult. And we're kind of using that as base to then build off and and add, you know, performance in different areas. So new products coming out, yeah. So yeah, I mean. To Elon's point that there's a there's a lot of advantages for regionalization. You know, the most important thing is we're not finding the working capital for six to eight weeks on the ocean. If there's a design change, then everything that's in transit basically has to be scrapped.
Secondly, port disruptions as we saw during COVID can be very expensive because slight disconnects can shut down production. So then your only option is costly air as per light. It also gives us resilience and supply chain. If one region is down, we can bridge with others. It's more worth to set up in the beginning, but it's critical to have when the need arises. Having said that, it's unrealistic to zero 100% regionalization across the board for specialized areas such as
semiconductors. In such cases, our team works very closely with our partners to ensure we have strategic banks in place and a disruption doesn't impact production while we step stand up the the regional manufacturing for that particular commodity. And you know, I'll say like on the rest of the vehicle, like you know, was talking about with cells, we're also heavily very integrated import ingots, you know, internal castings, you recycle those and melt some.
There's the same thing with plastics, but it doesn't mean we're not exposed. You know, we do have some areas where we use rare earth magnets, you know that. And we've been working for years to to find alternate sources and bring those up as well as we have burn texture machines. And as we've mentioned in the past, we're working our ferrite
lovers for some time. So like as Karen said, you know, with our heavy regionalization percentages, we're definitely like the lowest, you know, exposed to this. But we're not completely new in this Bible I've mentioned in several remarks. Great. Is it similarly related on the battery guide, just Tesla still a battery supply constraint as noted on the Q4 call? And does that change the tariffs?
So this is Karen. We've been working very hard to expand battery cell production in the US, both with vendors and what Bonnie mentioned earlier with the 4680 program. And we're also working on moving the upstream supply chain for battery cells in the United States for several years. And that strategy is really starting to pay off Now. As it stands right now, we're not constrained on battery cells
supply for vehicles. The recent tariffs do pose some challenges to Tesla Energy, well, like our CFO mentioned earlier, but it's something we've been anticipating and we should be able to resolve. In a timely fashion. We actually have a plan to find a place. We're executing towards it. We also have some other sourcing sources coming online to supplement the shortfall. And then of course, we have the LFV production that's happening
in house. We have we have a slight disconnect of aligning the right cells with the right path. So that's the little bit of puzzle that we have to solve internally. But as far as cells go, there's no shortage. Great. Thank you very much. The next question is, did Tesla experience any meaningful changes in order inflow rate in Q1 relating to all of the rumors of brand damage?
So. In Q1, as mentioned earlier, we took the best selling car over the last two years and ramped up all four of our global factories. And in less than 8 weeks, we've already gone to the rate of our previous model wise the factories. So just kudos again to the team for the great job there.
And despite the economic strain and negative articles that had in California and Q1, Tesla remained the best selling card, not just EV. And additionally, we had a record number of test drives globally in Q1 as well. So interest remains high. And so right now we continue to see, you know, good interest still on.
Vehicles. Yeah, I mean, Tesla's wanting you to sort of the macro demand for cars, you know, so when when there is economic uncertainty, people generally want to pause on buying during a major capital purchase like a car. But you know, as far as absent macro issues, we don't see any reduction in demand. Correct. And that's where we continue to focus on affordability and it's a fun focus there. Yeah. Fantastic. Thank you, guys. The next question is regarding the Tesla Optimist pilot line.
Could you confirm it if it is currently operational? If so, what is the current production rate of Optimist bonds per week? Additionally, how might the recent tariffs impact the scalability of this production line moving forward? And optimist, I want to just want to emphasize Optimus is still very much development program. It's not, it's not a you know, it's not a large volume production.
It's fine. You know, this this year, you know, we'll make a few that you know, we do expect to make thousands of Optimus robust, but most of that production is going to be at the end of the year. So the almost everything in
Optimus is new. There's there's not like an existing supply chain for the motors, gearboxist, electronics, actuators, really anything in the in the almost anything in the optimist apart from the the AI for Tesla, the Tesla AI computer, which is the same as one in the car. So when you have a new complex manufactured product, it'll move as fast as the slowest and least lucky components in the entire thing. And as a first order approximation, there's like 10 to 10,000 unique things.
So, so that's why that's why it doesn't anyone who tells you they can predict with precision the production ramp of the truly new product is doesn't know what they're talking about. It is literally impossible. So you go through this like series of constraints where it's like this part's limiting factor, now that part's limiting factor, this part's limiting factor, and multiply that by 1000 basically.
And then the rate of the production ramp is decided by how quickly you can solve each of those problems. Now you know Optimus was affected, you know, by the magnets issue from China because the optimist actuators in the arm do use permanent magnets. Now Tesla as a whole does not need to use some of the magnets. But when something is volume constrained like like an arm of the robot, then you want to try to make the motors as small as possible.
And then so we just did design in permanent magnet, permanent magnets for those motors. And those were affected by the supply chain, you know, by by basically China requiring an export license to send out any rare earth magnets. So we're working through that with China. Hopefully we'll get a license to use the rare earth magnets. China wants some assurances that these are not used for military purposes, which obviously they're not. They're just going into a humanoid Rd. launch.
So it's not a weapon system, but that that is an example of a general challenge there. But I'm confident we'll overcome these issues and we'll, by the end of this year have thousands of off most robots. Great. Thank you very much. And the last question, we already covered earlier whether Robotex was still on track for this year. So with with that we can move on to analyst questions. The first question is going to come from Pierre at New St. Pierre.
Please unmute yourself. Hey guys, can you hear me? Yeah, that's great. I'm super excited to hear that Robotaxi and Optimus becoming the very tangible feature for Tesla. But I have actually a question on the on the legacy, not the legacy, but the current like
auto business. And when I look back at the ramp of Model 3 a few years ago, I really saw it as being the iPhone of cars, a new product completely reinvented, very different user experience, vastly superior, impossible to to match for traditional competitors. And for the iPhone, it resulted in the the high end of the smartphone market quadrupling in size and actually Apple taking
60% market share. And so when you look at the Model 3 and the Model Y today, I think they are still like really vastly superior to any other cars. And I wonder why they've taken about 15% of their addressable market and not more actually. So another way to put it is what, why are there so many people still buying game WS and Mercedes knowing that the Model 3 and the Model YS are out there
and available? And I wonder if you've, if you're trying to solve that's rather internally, if you understand why, you know, what are these auto buyers who are not buying a Model 3 or a Model Y missing And, and if you have ideas of things you could do to address that, maybe there is enormous value left on the table there. Yeah, that's what I'm wondering these days. Yeah. I the, the, the, the reality is that in the future, most people are not going to buy cars.
So it's, it's kind of what, you know, what one could sort of say. Look, I think you want to continue with your, your phone metaphor. I mean, you can remember the days of the flip phones when there was, you know, 100 different flip phone designs. And, and I would, you know, the, the mistake that lump manufacturers made was to try to make that many different variants of a foot bone, which was a mistake. They should have made the iPhone so because obviously everyone's
going to want a smartphone. But in the beginning of the of when, when you know, the iPhone came out, I was like, wow, I can't believe these guys are not reacting as though this, this is death. But they didn't they, they kept making variance of flip phones. Nokia. Nokia I think at one point was the most valuable company in the world or close to it. But they kept making flip phones, you know, trying to find another mock niche.
Maybe somebody wants a phone of a different style, maybe this different colour or whatever it is. Nope. They just want a super intelligent phone. They can do everything, just one SO. I said this many, I said this many years ago, but in in the future, in in the not, not too distant future, buying a gasoline car that is not autonomous will be like riding a horse while using a flip phone. Some people still do it, but it's rare. OK. And.
Thank you. The next question comes from Emmanuel Rosner at Wolfe. Emmanuel, please, I'm here. So. Great. Thanks for taking my question. So Ilan, the the public version of the FSD software still has a decent amount of I guess intermittent human interventions that are required. So what's still required for the software on your end to get to a level where it doesn't need to be supervised?
And I'm asking that in the context of, obviously, the June launch being in the next couple of months, what still needs to happen? And we are working on a number of items too. Yeah, I mean we are aware of the interventions that are happening in the public bills and that's why we are hardcore burning it down. And really just picking some initial launch city helped us focus on like solving all the issues that you'd face here, for example, like it's focusing on Austin.
We're not like solving all the issues that, you know, customers in Boston or somewhere else might face. And then here we just like, you know, have a big list of all the issues, just burn it down. And that's what the team is working on along with other sort of like redundancy issues. For example, if one of the computers goes down right down the customer fleet, it would like throw the red hands and ask you to take over. But we don't want that kind of
situation. So you're solving both like the reliability issues of the autonomy software and also the reliability issues of the system software together for Austin? Yeah, really. Just we just worked through a long tail of unusual interventions. So, and these are really very rare, like as a single intervention every 10,000 miles. I mean, that's a lot of driving you've got to do to even find one case within Athens. Yeah, and some interventions due. To. Systematic missing
functionality. For example, for handling emergency vehicles correctly, you don't need to consume audio as an input other than the customer facing versions don't have audio input, but the version that's in that's going to be in Austin will have audio input and so on. OK, but would you have like remote operators for example? I mean every now and then if a car gets stuck or something someone will like, you know, unblock it.
But it's just figured we are a bit conservative and tend towards more safety than even if we get stuck every now and then. We do have remote support but it's not going to be required for safe operation. If anything, it's just required for more availability. Anyway, it's only a couple months away, so you can just say for yourself in a couple months in Austin. Great. Our next question comes from Edison at Deutsche Bank.
Edison, please unmute yourself. Hi. Thank you very much for the question. So I want to ask about the the optimist supply chain going forward. You know, you mentioned, you know, very fast ramp up. What do you envision that supply chain looking like? Is it going to require many more suppliers to be in the US now because of the tariffs? How, how, how does one kind of think about what needs to happen there? We. Have to see how things settle out.
I don't know yet. I mean some things we're doing as Pretoria talked about, which is that we're, we've already taken many steps to localize our supply chain. We're more localized than any other manufacturer and and we have a lot of things and under way that to to increase the localization to reduce supply chain risk associated with geopolitical uncertainty. Did you follow up? Yeah, wanted to come back actually to the, the robo taxi
then. Do you have a sense on, on how, how many cars or how, how big the scale will be initially and how that might ramp up? I know you're, you're targeting, you know, millions of, of vehicles in the second-half kind of of next year. But initially at launch, how, how many vehicles would be reasonable? And is it going to be as simple as if one goes to Austin, let's say in late June or July, you'll be able to to request?
Yeah, we're still debating the exact number to start off on day one, but it's like, I don't know, maybe 10 or 20 vehicles on day one and watch it carefully, scale it up rapidly after that. So, you know, we want to make sure that we're paying very close attention the first time this happens. But yeah, you'll be able to end of June or July, just go to Austin and what are Tesla? What time does drive great? The next question comes from George at Canaccord.
Hi, thank you for taking my question. It has to. Do with FSD pricing, can we envision when you launch unsupervised FSD that there could be sort of a multi tiered pricing approach to unsupervised versus supervised similar to what you did with autopilot versus FSD in the past? Thank you. I mean, this is something which we've been thinking about.
I mean, just so you know, for people who have been trying FSD and who've been using FSD, they think even the current pricing is too cheap because for 99 bucks basically getting a personal show. Yeah, I mean, we, we do need to give people more time to to they want to look at like the key break point is can you read your text messages or not? Yes, can you write a text message or not? Because obviously people are doing this, by the way, with an
autonomous cars all the time. And if you just go over, go over drive down the highway and you'll see people texting while driving, you know, doing 80 miles an hour. Yeah, but depending on makeup, doing their hair with, with the mirror down and texting and driving at 80 miles an hour. This is a concurrence. So people eating lunch, you name it, shaving, you know. So anyway, but right now the car is very insistent that you pay attention to the road.
So which reduces the value somewhat because it's very rigorous about you paying attention to the road. And we'll gradually lighten up on that with, you know, every every few weeks or every month, we'll, we'll relax that a little bit, make up so you can be more and more able to do things you want to do and not have the card to manage your rate of
detention. So, so that, that, that value, it'll really be profound when you can basically do whatever you want, including sleep and, and, and then that $99 is going to seem like the best $99 you've ever spent in your. Life and George, did you have a follow up? My follow up is about geographic expansion. Just maybe discuss additional markets. You know there's. Been some news around India recently that you could launch this year and next.
Thank you. So, yeah, I mean we we've been working on getting into II is a very hard market and especially the current and I don't want to talk just about tariffs, but the current tariff structure with India is that any car which we send in is subject to 70% tariff also on like a 30%, you know luxury tax on it. So you know, the same car which we're sending is like 100% more expensive than what it is. So that creates a lot of, you know, anxiety.
It's like, you know, people feel OK, they're paying too much for the car. And by the way, we're not getting the money. The local government is getting the money. And that's why we've been very careful trying to figure out when is the right time. We, like I said, we are working on it. It's a great, it would be a great market to enter because India has a big middle class which we would want to type in and that is the market which we want to be in.
But again, these kind of things create a little bit of tension which we are trying to work around. Great. Thank you so much. The next question comes from Adam Jonas at Morgan Stanley. Go ahead. Adam. We, we can't hear you, Adam. So, Mindy, we'll put you back in the queue and we'll move to Colin Langan from Wells Fargo while Adam figures out his audio. Colin, please unmute yourself. Oh great. Do you hear me? Yes. Oh, great. You know you're still.
Sticking with the vision only approach, a lot of autonomous people still have a lot of concerns about, you know, sun glare, fog and dust. Any color on how you anticipate on on getting around those issues? Because I my understanding it kind of blinds the camera when you get glare and stuff. Actually it does not find the camera. The we use an approach which is direct photon count. So when you see the a processed image, so the image that goes from the sort of photon counter.
So the silicon, the silicon photon counter that gets goes through a digital signal processor or image signal processor. That's, that's normally what happens. And then that then the image that you see looks all washed out because if it's you point the camera at the sun, it, the post processing of the photon counting washes things out. It actually adds noise. So quite a big breakthrough that we made some time ago was to go with direct photon counting and bypass the image signal
processor and that. And then you can drive pretty much straight at the sun. And you can also see in what appears to be the blackest of night. And then here in fog, we can see as well as like people can probably better, but in fact say quite slightly better than people than the average person anyway. And yeah, so so the. Camera is able to see when there's direct glare on it. I'm surprised by that. OK. And then just. There are obviously media reports the other day that the
affordable model was delayed. Doesn't sound like that's correct. Those reports also talked about it being more of a cheaper version of the Model Y Any color on what we should expect is, is it a cheaper version of the Model Y or is it actually going to be a design change with it? So, and I think Lars already covered it in answering one of the say.com questions, The real thing which we are trying to focus on is affordability and using our existing lines.
And there's always limitations when you're using existing lines as to how many different form factors can you ping to. So that's the way I would say you should think about it, and I don't. Know yeah and I think I said this before and other other calls like, you know, with the recent upgrades telling the Model 3 and the worldwide platforms, we made some pretty great cars at pretty great prices and we had a bunch of features and things like that.
I think it's easy to consider that, you know, moving forward, Tesla doesn't make bad cars. And we always make, you know, our intent is not to make a car that is any worse than any car we've ever produced in the past. And so, you know, the models that come out the next months will will be built on our lines and will resemble in form and shape the cars we currently make. And, and you know that the key is that they'll be affordable and you'll be able to buy one.
Great. We might have time for one last question, Adam. We'll try your audio again. You want to try to unmute yourself, Adam. All right. Unfortunately still not working. All right. Oh, all right guys. Technology go. Ahead. Yeah, hi. Yeah, in the February 28th Joe Rogan interview, Elon, you advocated for a rampant tariffs to give people time to adjust. Otherwise quote you said the system would break and bad things would happen.
So are things breaking yet? And if the announced as if the tariffs as announced remain in place? When would things start breaking? Well, at the risk of stating the obvious, I'm, I'm not, I'm, I'm, I'm one of many advisors to the president.
I'm not the president. So, and but I, you know, I've made my opinion clear to the president and that, you know, and, and other people made their opinion clear to the president because he is there, he listened, he talks to many people and he makes his decision. And, you know, I'm hopeful that president will observe whether my predictions are more accurate than the predictions of others and perhaps where my advice differently in the future, which
we'll see. But, you know, I'm an advocate of, you know, predictable tariff structures and generally I'm an advocate for, you know, free trade and lower tariffs. Now, 1 does need to take a look at where if, if, if some country is doing something predatory with tariffs or is providing that extreme support for if a government is providing extreme financial support for a particular industry, then you have to do something to counteract that.
So, but I think that that's on a case by case basis strategically, but you know, the the president is the the elected representative people and his fully within his rights to do what he would like to do. OK, Elon, I, I, I respect that. Just as just as a follow up and thanks again between between China and the United States, who in your opinion is further ahead on the development of physical AI specifically on humanoids?
And and also drones. I'd be interested and and is it even close and kind of how I I yeah, I'm serious. Well, I think you know the answer to drones. I mean, yeah. You know, a friend of mine, Yuval made this, you know, posted on XI, reposted it, I think a prophetic statement, which is any country that cannot manufacturers own drones is doomed to be the vassal state of any country that can. And we can't, American cannot currently manufacture its own drones.
But that's it again, unfortunately. So China I believe manufacturers about 70% of all drugs. And if you look at the total supply chain, China is almost 100, almost 100% of drones are have a supply chain dependency on China. So China is in a very strong position and here in America and we need to shift more of our people and resources to manufacturing because this this is and I have a lot of respect for China because I think China
is amazing actually. But the United States, the United States do not have such a severe dependency on China for bad groans and be unable to make them unless China gives us the parts, which is currently the situation, You know, with respect to humanoid robots. I do not think there is any company in any country that can match Tesla.
Tesla and SpaceX are #1 so. And then now I'm a little concerned that on the leaderboard ranks 2 through 10 will be Chinese companies, but I'm confident that rank one will be Tesla. Great. Well, I think that's unfortunately all the time we have for today. We appreciate all your questions and look forward to talking to you next quarter. Thank you very much and goodbye. Did you catch that, what Trump said about Elon? And it's it's telling the kind of person that Trump thinks Elon is now.
And I'm not taking a side here. I am more in favor of doing the right thing and being nice to people than I am about anything else. And something is telling about the way that Donald Trump just kind of blows off Elon in this clip. And I would say that about anybody. I'm I'm not for or against anything. I just know what I hear. Right? And if you didn't hear that, then go back, rewind a little bit, check it out.
Notice how he kind of just like brushed Elon off as one of those people that like, I don't really need the guy. He just came in here and did this thing. And that's cool. You know, like that's kind of how he how he worded it. But yeah, I mean, let me know what you think in the comments. Let me know how you feel about this because I'm here to have a conversation with you. And we are also a community here.
And if you want to join our community for further discussion, we have a Discord. I'm going to leave it in the description down below. So thank you so much for listening today. I appreciate your time and I appreciate you spending it here with me on stage 0 Elon Musk podcast. Take care of yourselves and each other and I will see you in the next one.