Tesla, Inc. (NASDAQ:TSLA) Q1 2019 Earnings Conference Call Transcript

Apr 24, 2019 • 05:30 pm ET


Tesla, Inc. (NASDAQ:TSLA) Q1 2019 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to the Tesla Q1 2019 Financial Results and Q&A Webcast. My name is Sherry and I will be your coordinator for today. At this time, all participants are in a listen-only mode. Following the prepared remarks, there will be a question-and-answer session. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to turn the call over to your host, Mr. Martin Viecha, Senior Director of Investor Relations. Mr. Viecha, you may now proceed.

Martin Viecha

Thank you, Sherry, and good afternoon, everyone. Welcome to Tesla's First Quarter 2019 Q&A Webcast. I'm joined today by Elon Musk; JB Straubel; Zachary Kirkhorn and a number of other executives. Our Q1 results were announced at about 2:00 P.M. Pacific Time in the update later we published at 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 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. (Operator Instructions) But before we jump into Q&A, Elon has some opening remarks. Elon?

Elon R. Musk

Thanks, Martin. On Monday, we hosted our first-ever Autonomy Investor Day, showcasing our new in-house designed full self-driving computer and our AI-based software trained by more than 400,000 Tesla vehicles. All Tesla cars being built today have all hardware necessary for full self-driving and over-the-air updates will enable our customers to use the Tesla ride-hailing network fleet and generate income, which, as we said on Autonomy Day a few days ago, we think it's somewhere between $10,000 and $30,000 a year. In some cases, perhaps more.

We are the only Company in the world producing our own vehicles and batteries, as well as our own in-house chip for full self-driving. We're in a position unlike anyone else in the industry. And in 2020, we expect to have 1 million robotaxis on the road with the hardware necessary for full self-driving. We believe we'll have the most profitable autonomous taxi on the market and perhaps the -- yeah. Last quarter, we experienced a massive increase in delivery volume in Europe, similar to what North America experienced last year, as well as the massive increase in delivery volume to China. As far as challenges go, this was a good one to have, because we booked vehicles and consumers support them. This rapid increase in overseas volume strained our logistics operation and resulted in over half of our global deliveries occurring in the final 10 days of Q1. This was the most difficult logistics problem I've ever seen and I've seen some tough ones. So, I'll say it again, like we initially delivered the half of all vehicles produced -- half of all deliveries occurred in literally in the final 10 days of