Tesla Investor Day in 28 Min (Supercut) (2023)

due to recycling, so in the end a sustainable energy economy is within our reach and we should accelerate it, yes, I mean, let this really be the main message today. um and I really wanted today to not just be about telling

investor

s who own stocks, but anyone who is an

investor

on Earth so what. What we're trying to convey is a message of hope and optimism, and I hope that optimism is based on real physics and real calculations. No, it is not an illusion. The Earth can and will move to a sustainable energy economy. in your life, thank you, yes, thank you, I just want to welcome Lars and Franz to the stage, so when you think about what I'm trying to say, I really want to destroy this house when you have a car that's about five meters long . and you have people working on it like we did on the model 3. and we changed that to this process where we take different parts of the car and we can do more at the same time like we did with the model and structural battery pack.

See here, the United States is doing that in the front or back of the vehicle, which means we can have more people working on the car or robots working on it at the same time, which means we have better operator density and less time doing. nothing, we get 44 more operator density, which means more work, less time walking back to the station 30 Improvement in space-time efficiency and because we are not building it in and out of the car with those slow movements of those robots that I showed you production hell, when we go to automate it, it will be a lot easier in the end, that will probably look like this, where we balance serial and parallel manufacturing in a way where we only do things that are necessary with a much final line. shorter that blocks much less of the rest of the factory so we can optimize material flow using best practices and what that means, it will look something like this where we build all the sides of the cars independently.

We only paint what we need and then we assemble the car parts once and only once put them where they need to go. The interiors are attached from the bottom up or from the top down so there is more access for those robots and people who are not moving heavy objects and doing nothing to them, which means we are doing more work on the car for the most part. of time and then when we took it, we tried some assemblies and put them together, finally we put the car together. just once putting the sides with all their parts on a front and rear part that was already assembled, carrying the floor with the seats and finally boxing it with the doors once like the cyber truck, so in the end you get the same thing. car but it's not going to be a model and yes this is not a model and as an illustration it will not be the next generation vehicle in the end what does that mean for increasing the scale and adoption of electric vehicles in the orders of magnitude that we just had?

We showed him that we have to make constraints part of the solution. This leads to a more than 40% reduction in footprint, meaning we can build factories faster with less capital expenditure and more production per unit. We will reduce costs by up to 50 percent. This is the Two-for-One Concept, which you hear me and Elon talk about on earnings calls, yes, so I think our track record approves that we can and do deliver the best cars despite these limitations and I would really love to demonstrate it. They will know what I mean and will introduce the next generation car, but they will have to trust me until later.

Thanks friends. My name is Colin Campbell and I have the true privilege of leading powertrain engineering here at Tesla and the Pharaoh Train. The powertrain factory behind me today is 75 smaller and 65 cheaper than the one we originally built on our next powertrain, so the silicon carbide transistors I mentioned are a key but expensive component. We discovered a way to use 75 percent less without compromising. the performance or efficiency of the car and of course we know the battery cell. Supply is one of the limitations to EVS scalability at this time. Our new powertrain is compatible with any battery chemistry, which will give us great flexibility in battery sourcing if we want it.

To make EVS more accessible to people, they have to be cheaper. We've brought the cost of the power unit down to about a thousand dollars and we don't think any other automaker is even close to that number. We have designed our next powertrain that uses a permanent magnet motor to not use any rare earth materials at all and this achievement, like all the achievements I mentioned today, is only possible thanks to the incredible people on our powertrain team, So we are absolutely committed to the cause of sustainable energy and that is why we can do what no other company can do.

Good afternoon everyone and welcome to Texas for Cyber ​​Truck. We are now designing 85 of the in-car drivers for the next generation platform. We are going to finish the job and design 100 of the drivers to give us full control of the design and supply chain at the component level thanks David and Pete Hi everyone, my name is Ashok aliswami I work on autopilot and driverless as I mentioned earlier , the solution for scalable FSD is to get the data and compute architecture right and we have assembled a world-class team to execute this. We are pushing the envelope on all three of these elements, and as we improve the security, reliability, and convenience of our system, we can unlock it. driverless operations that then cause the car to be used much more than it is now is that I would like to introduce Elon back to the stage to provide more updates.

It's a little strange to see the arms and legs just separated considering that when we did the AI ​​day, this version of Optimus didn't work at all, so I think the rate of improvement here is quite significant, we have the AI ​​of the real world, we are the most advanced in real world AI, so the same thing The AI ​​that drives the car, as you can imagine, is really a robot on wheels and this is a robot with legs, so while we solve the AI In the real world, I don't think there are any. I don't think there is anyone even close to Tesla.

About solving real-world AI, that same computer and software is used in Optimus, probably the least understood or appreciated part of what we're doing at Tesla, but it will probably be worth a lot more than the car side in the long run. Hello my Name Is. Rebecca Tanucci and I lead our charging infrastructure teams here at Tesla. Recently, we have begun to open our networks globally. More than 50 percent of our superchargers in Europe are currently open to other electric vehicles that we have also opened with in Asia Pacific. our first sites in Australia and yesterday we opened our first 10 supercharger sites here in North America in the US for other electric vehicles.

We've also just started installing our 4th generation supercharger poles, which are being installed first in Europe and while it's not a big deal it's not a big deal to mention that they have longer charging cables so we can get to the ports easier loading of different vehicles. Hi, my name is Karen and my team leads an electronic battery and powertrain supply chain at Tesla, so the question When I'm asked, do you know? Tesla will basically break the chip industry if we grow to 20 million vehicles. The answer is no. On a line that would need 1,000 associates to build the full-volume super collector, now only 10 associates are needed.

Hello everyone. My name is Tom Joo. I am now responsible for global production, sales and delivery service. I joined the company in 2014 and have been leading the company's business in China and APAC. Today I represent all the gigafactories and talk about How we can make more cars, faster. I'm happy to share it early this morning. We will arrive at the formula for the total rebuild of Tesla. If you look at the graph from right to left, Shanghai will be able to significantly reduce our workforce. hours per car um during the ramp um the small drop that occurred in the last quarter of 2022 um due to the Kobe closure um and on the right there is a Fremont model and workshop, even this is a 60 year old facility, the team there will still be able to to optimize material flow, eliminate all single points of failure and drive higher productions, therefore reducing labor hours and in fact, this factory keeps shipping a new record yesterday, they just had a new record factory diary and we have also continued to focus on uh, refining the way that we manufacture the cells and the factories that the cells go into, as you can see in this graph, from 2170 typical cylindrical cells to 4680, it took a big leap which is basically a 5x reduction in the factory footprint and volume and yes, the volume and footprint and after what we did in Fremont and our pilot line to Texas, we improved even more and we are passing again as we enter Nevada and do it What this really represents is a series of actions taken by a very integrated holistic uh design team.

Through you know the product design, manufacturing design, process design, equipment design and facility design, and we are not only looking at the cell factor itself, but also the upstream materials when necessary , what you see here is the representation of the 50 gigawatt hours. one year Corpus Christi Lithium Refinery which we have already started construction on here in Texas, the facility will come online in late

2023

this year. This is a good example of something where we're basically talking about breaking ground and getting started. commissioning within 10 months and with actual production within 12 months, that is the similar goal to what we did in Shanghai and with that I think that sums up our efforts in the factory.

Mike, do you want to come and we'll talk about it. energy, we are in our sixth generation of our industrial product, which is the XL mega package that we are building in Lathrop California. We have deployed over 16 gigawatt hours of industrial and residential products in 50 countries and truly mega package. is the market leader, it is the best in class in efficiency, reliability, power density and the easiest to install, the lowest cost to install, so adding all this together, we are really at the beginning of this huge ramp in the implementation of energy storage, so this is our last section.

From our prepared remarks today, if we look at our longest-running scale production product, this is the Model 3. We got to 5,000 cars per week, which was our design capacity in mid-2018, and we've since eliminated 30 percent. of the cost of this. Product cost reduction doesn't just come from one place; There is no silver bullet here and while we wait for our next generation vehicle, our goal is to reduce the cost by 50 percent and we have talked about that a little earlier today from going from the snx model platform to the platform three and Y , we eliminated fifty percent of the cost, so the task here is to do it again and this is very important because as we improve affordability, the number of customers who have access to our products increases dramatically and as we improve affordability , the number of customers who have access to our products increases dramatically.

If we tie this to our master plan, it allows for exponential growth in our volume with linear reductions in the cost of our products. The second point I'll make here is that, again, cost reductions don't come from just one place, but from more. It's more important than just the cost of the car up front, this graph here shows what the total cost of ownership is per mile over the course of five years and we have to think about the financing costs. Insurance costs. The cost of energy. Drew talked a little bit about that with the plans we're making in Texas, car wear and maintenance, etc., and we're already at a place today in the US where a base model 3 in terms of cost per mile is smaller than a Toyota Corolla, which is the best-selling car in the world.

The next cost reduction thing I want to talk about is operating expenses. We spend a lot of time on our earnings calls talking about gross margins and costs of products that we don't spend much time talking about. Opex, but I think this is one of the really important parts of our story, so since 2018 we have reduced our non-GAAP Opex 60 as a percentage of revenue and 75 percent per car delivered. This is quite amazing if you look. In SG, apart from this, I think the story here is quite traumatic, sothat we are showing here a comparison of SG per car delivered compared to the traditional automotive industry, which is both an OEM and the dealer network, and our estimates are that we are 60 to 70 percent lower per car and if Convert this into dollars, that's many thousands of dollars per car, so to conclude the financial portion of today's presentation, I just want to leave you with a couple of key messages.

All of this is that we use innovation at an intense level to reduce costs and improve business efficiency and the reason why this is so important is that it allows us to improve the affordability of the product. This is particularly the case as we move on to our next generation. The platform that improves affordability allows us to comfortably make investments that increase volume, that volume generates cash which then allows us to make more investments and as we integrate that in the future, we believe as a leadership team here at Tesla that we will achieve scale without precedents. in the manufacturing space and this is what is ultimately required to accelerate the world's transition to sustainable energy.

Thank you very much to all.