Q&A is a session under a company's earnings conference that institutional and retail investors ask some most-concerned questions to the management. On this page, you can find out some valuable info that might affect the stock price in the following weeks. $Tesla (TSLA.US)$
Key Takeaways:
Attitudes: management feel very optimistic in the long term, but there's also a lot of uncertainty right now.
Goals: the company's goal is to grow on an average pace of 50% per year, and ultimately be able to achieve 20 million cars per year.
Products: the company is working on a strategy to increase production rates as quickly as possible. Cybertruck is expected to launch by next year.
Do you still expect to start production of the $25,000 model in 2023. What are the biggest hurdles from now until then?
Yeah, we're working on a strategy to increase our production rates as quickly as possible. We don't want to add any new vehicles to our lineup when we're generally is in a cell constrained world. While there is still more runway to grow these existing products, we are focused on Model Y expansion and also in Berlin, ramping S&X further in Fremont to restore to pass levels, while also growing 3 and Y production in Fremont in Shanghai.
After Model Y in Austin, our next product launch will be Cybertruck. And that's time and course depend on increasing cell capacity and completing our currently full plate of products on the table.
What is Tesla 's goal for vehicle production capacity for the current factories?
Our goal as a Company here is to grow on an average pace of 50% per year. I think that will be a difficult goal, but that's the goal that the internal team has. And they're going to continue to push on that. We're trying to get to 5,000 cars a week as soon as we can. And then we'll continue to push beyond that, potentially even getting to 10,000 cars per week at those factories. And then we will add Cybertruck here in Austin and continue to grow from there. So, our goal is to get to millions of cars per year over the next couple of years. And then ultimately in the long term, be able to achieve 20 million cars per year.
Is Tesla considering any other ideas other than FSD with the real-world AI that can bring additional software revenue to Tesla?
Sure. At AI Day we did talk about potential future where Dojo could be used as a neural net training platform for other companies. It's not a focus of ours today as we are fully subscribed on Dojo with our internal uses, we do expect to continue to improve the in-car experience in the context of FSD
Elon said that we get an update on Cybertruck in November a year ago, but it hasn't happened and we know there are a lot of updates. Will you show off the new and improved Cybertruck?
We get a lot of questions on Cybertruck. We've been busy detailing the Cybertruck to achieve the prototype version we shared with customers awhile back. As you may have seen recently on social media, we've built a number of alphas and are currently testing those to further mature the design. We'll continue to work through the product in the beta stages that we're in now and look to launch that by next year.
You hit low-teens operating margins. That was your medium-term target. You're there now, despite the number of challenges and not full utilization to the plan. How are you thinking about that target now?
we've actually exceeded our long-term guidance on our operating margin target. As full self-driving matures, as take rates increase, if we are to raise pricing on that, there's considerable upside both on gross margins and operating margin as that comes to light, as the business starts to become more of a mix of a hardware-based Company and a software-based Company.
So, we feel optimistic about the journey --very optimistic about the journey as we look over into the long term, just a little bit difficult over the next 4 to 5 quarters. There's just a lot of uncertainty in the world right now.
This article is a script from the Q&A session of Tesla's earnings call. In order to facilitate reading, we have made appropriate cuts. If you want to know more details, you can click here to re-watch the earnings call.

President Joe Biden endorses legislation introduced by U.S. Rep. Dan Kildee (D-MI) that would expand the existing consumer tax credit for electric vehicle and add incentives for vehicles made with union labor, Kildee said Tuesday.
The legislation would expand the existing tax credit to up to $7,500 for another five years, and add incentives for vehicles made with union labor. Most EVs would qualify for a $7,500 tax credit. But union-built EVs assembled in the U.S. would receive an additional $4,500 in credits.
Only $Ford Motor (F.US)$ , $General Motors (GM.US)$ and $Stellantis NV (STLA.US)$ , Chrysler’s parent company, would benefit from the extra incentive, as union workers assemble most of their EVs in U.S. plants.
The proposal effectively leaves other automakers, including $Tesla (TSLA.US)$ , the nation’s main EV manufacturer, at a $4,500 per vehicle disadvantage.
Tesla CEO Elon Musk also criticized the measure, saying at a recent Beverly Hills, Calif., conference that the Biden administration is “controlled by unions.”
How do you feel about this? Is it fair that some of them are getting more benefits?
Source:
Biden endorses EV tax credit bill
Democrats' electric vehicle push sparks intense lobbying fight

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