To this live stream of tesla's, q1 2022 results. We are going to be covering the results, live that are going to be coming out in just about 10 minutes from when we're starting we're starting 10 minutes before the markets close, and then we're going to wait an hour and a half while we're doing this live Stream to go and cover the live call, unfortunately, tesla likes having this big gap between releasing the results, which are very prompt, more prompt than pretty much any other company um uh, literally the mo the moment. The bell goes within a few seconds. They usually come up, but then we're going to be going and listening to what they're going to say in the investor call elon musk just a few minutes ago confirmed on twitter in answer to uh one prominent tesla uh person on there that they're going to be Attending so that would be quite interesting uh, because elon musk traditionally has not been a very good thing for tesla shareholders uh him.

Turning up to these calls because he has a habit of not being the most politically correct person in how he presents information and the kind of things he sometimes blurts out and also, he will often say things that perhaps like he should have like kept to himself. Like things which later are proven, maybe to not be necessarily entirely accurate, uh et cetera, et cetera, so so so we'll have to wait and see. Um i'm going to share my thoughts, i'm going to tell you some of the interesting things that i want to. Listen to, and also in the time between the hour and the hour and a half between the results, we're going to be talking about a whole host of topics.

Let me tell you what we're gon na be talking about just so that, if you're watching this later as well, there's gon na be quite a lot of like topical discussion as well. Um, it's gon na be uh. Hopefully an interesting conversation. If you guys have i'm having uh, you guys right here in the middle of my main screen, uh the chat.

So if you have questions things that i've missed things that i didn't see or uh anything else, please go and shout them out. Uh! It's gon na! Be great tom, i'm still on the same camera i do. I do wan na mention. This is the first time that i'm doing one of these, not from my living room.

Despite how it looks over here. This is, in fact not the same place that i was doing videos for two years. I moved two weeks ago. Most people didn't notice.

I just happened to use the same ikea furniture because i really like it that stuff back there, but it's actually. I have a studio, which is a really good thing, because it means that i don't have a three-year-old upstairs uh trying to disrupt my live streams and i'm not a nuisance to him either. So that's a really good thing uh. Hopefully, we can focus a little bit more and not try to sort of like push people out of the living room.

I was literally doing these out of my living room beforehand, so um just before we get into the topics. What is tesla doing today in terms of share price tesla is four point: six percent down, but a lot of stuff is down today's uh, especially gross stock, but tesla is probably a bit more down than people expect. There are issues i highlighted. I highlighted that um in one of the recent videos.

They got a lot of dislikes a lot of hatred, a lot of people saying they really didn't agree with me. I highlighted that q2 results are likely to be taken very negative by invest community, especially if you've been following the investicles for some time. You might have noticed in the last two to three quarters. All the investor calls um are being triggered a lot more so like, if you're slightly off, either way the stock can go and lose 25 like what happened to netflix today, like 30, something down insane like what happened to facebook last quarter when they announced results that Were slightly off and then bang their share price went completely tanked like no tomorrow, the biggest single day drop in a single company ever uh.

That day, when facebook dropped we're seeing this more and more - and this is quite unprecedented - this certainly isn't something that we've seen uh. Previously we have this climb down from covid, which means a bunch of companies that profited during coveted particular like online social media companies and other companies like that they are uh getting very uh like very strongly reassessed because their volumes are coming down. So we've seen what happened with netflix this morning, but it's been happening with everyone else, with pinterest, with five or with any other company that was seen to maybe get a disproportionate benefit during the covet uh bump, so um anyway, uh five minutes or so until the Markets close uh, so let's talk quickly: hey damian everyone's here, hello, everyone uh! By the way, if you haven't subscribed to tom nash or damian, the two people i've just seen uh. They are amazing channels, far better than my own.

So if you want to go and listen to actually good quality content, please go and subscribe to them. Um. The topics i want to discuss later we're going to come cover a lot of stuff we're going to cover questions that are going to be coming up as well, but uh. What's the progress for tesla with fsd uh, because there's been a lot of talk, elon's pre recently mentioned that there's now over a hundred thousand uh people using fsd globally, it was 60 000 on the last earnings score.

So the number is obviously going up quite considerably. They just opened up to canada, but what? But, despite all this kind of snippets or like? Oh it's almost there, oh in a recent two recent interviews, you said: oh, we think we're going to be having a product. That's going to be publicly available later this year. The problem is, we've been hearing the same thing for many years now and so, however much we all want to believe it and, however much it kind of sounds like it's there, and you know, the video is confirmed, like the data confirms that we are infinitely closer Than we were some time ago in terms of like how the software goes and is able to assess the surroundings, some of the hardware improvements, although um there was still news earlier today that some cars coming out of uh berlin, i think it was are not coming Out with amd gpus, despite the shanghai made cars coming out with them, that is a downside, because that may affect the and and some people saying okay, well, amd gps they're only going to be used for this gaming stuff.

However, they also take load of other system. Uh processing components: the question is going to be like: are the cars today good enough for full real mass scale? Full circle driving are going to be having yet another one of these uh hardware constraint issues uh, which we'll we'll need to overcome in the future anyway quickly and some of the other points. Um q2 production issues what's happening with china, what's happening with their steps, um. How big of an issue has the three weeks shut down in china beans? They restarted production uh this week was a yesterday before yesterday with one shift and the shift um is people living in of the factories.

I think it's one shift um. They usually work. Two shifts, but i think three or four brigades, depending on how you take it, so the production, even after restart, is going to be low, so the q2 numbers are going to be impacted, potentially even more than maybe some people expected. So what? What is the official position on that and how does that affect things? Um then? We want to know um.

Are there going to be any new factory locations announced previously in november at the shareholder meeting? I think it's november. Maybe it was october. Elon said that they're going to be announcing uh new factory locations in the second half of this year, so we're not in the second half of this year. Yet, however, between that point in november and now elon musk has also said that uh tesla is now like going to be going down this new path of uh extreme scale and there's going to be an interesting question of.

What exactly? Does that mean when, like so they've announced the opening of these new factories in berlin and austin, are they going to be announcing at any point soon? The extension because both of those factories have three at least three more phases in like initial planning and development, and obviously those phases will still take time to build, maybe not necessarily the same amount of time, because some of the infrastructure is already there. Some of the initial supporting stuff is already there, but they're still going to take some substantial time to build when they're going to start doing that, because there's going to be some lead times with that. What's the progress with the shanghai expansion because the shanghai expansion uh was due to complete at the end of april, but because of the uh shutdowns that we saw over the last four weeks and uh other delays that were reported before that i am guessing we're not Going to be seeing that until june or july now as well, now q1 numbers came in slightly higher on production uh for tesla than q4, but very much, and especially in deliveries and deliveries. The gap was very different.

Obviously, deliveries was going to be largely driving the value tesla share prices, uh dipping a little bit as we're running towards the end of the day. We are down five over five percent and 976 dollars, um, so yeah uh other points. Robo taxi update news updates on cyber trucks, semi and roadster for anyone who's, particularly interested in that supply chain issue. There's been a lot of rumors that tesla is going to begin actually having to source their own raw materials, and elon has alluded to the fact that he may consider doing that.

There were rumors that they're going to be buying a lithium-ion, lithium mining company that didn't come to be true um. What are we going to what's? The progress on energy energy is probably the biggest elephant in the room that nobody talks about, because that, even in elon's own words is the biggest driver of what um of what tesla's long-term future outlook is going to be. Like elon himself has said that he expects energy business to be bigger in like a decade or so time and so far over the last year. The stagnation in supply chain, the slope, development of the 4680 cells and everything else has meant that the energy sector has really not moved anywhere much at all, so the question is going to be well when, when are we going to be seeing that ram talking ramps 4680 ram by the way, i'm going to be refreshing uh for the results uh, because we are actually on the brink uh one.

Second, let me just see if we uh get the results coming. I dog. Let's have a look, let's have a look. Have we got them not yet? Okay, i'm going to be refreshing.

If someone sees them uh, please, please do. Let me know uh, because i'm going to be talking as well, so 4680 ramp uh. What's the progress with that, so obviously cater road facility, uh right near to fremont in california, is where they developed the initial production line, but they are, they were showing uh clips of the 4680 cells now being made upstairs in uh in in texas as well. I'm going to be sharing the screen as well that there's nothing to share on the screen yet.

So that's why i'm just talking while refreshing the screen, because there's nothing on there to talk about just yet so we'll we'll show the screen as a when it comes up um. How is the ramp in austin progressing, because at the moment the big question is? Are the 4680 cells going to be slowing down the potential growth in austin or not um, and also will berlin and shanghai make their own batteries, or are they going to be manufacturing them in austin and cater road, or are they going to be relying on third Parties because there's actual dedicated battery manufacturers going to be manufacturing 4680 cells under license as well, in addition to tesla doing it themselves so um. Those questions are interesting. Then, what's the pace of berlin, a ramp on, in addition to the question about austin ramp and the 468 yourself um, they said that both production lines are going to be targeting 500 000 annual run rates.

How sandbagged are those numbers, because i know shanghai in the last report still said that it is like a up like up to 500 000? I think it was whatever uh total run rate, despite manufacturing in q4, at a pace more like 750, 800, 000 and going into q1. So the question is like like: are they sandbagging those numbers and if and if so, are they sandbagging them uh? Even more and uh, the last question i had is any robot updates, i'm not particularly interested i'll. I'll be honest, i'm a bit different to maybe many other people who talk about tesla in the youtube sphere in the online investing sphere. I'm not particularly interested if i'm completely honest with you in the specifics, because i think we're so far out from understanding the timeline on robots.

Remember, the semi was meant to come out several years ago as well and um. There's a lot of optimism and a lot of oh this year next year is going to be coming. I i'm a little bit more. Maybe conservative call it what you want in terms of my assessment of what how much, how much i think that's going to be bringing um, i'm still not seeing the results, we're two minutes in what's going on and still no results coming through, i will share my Screen as soon as the results are out so that we can all look at them and go through them, um remember the the market is saying like, depending on who you believe, like 230 235 earnings per share, i'm not particularly.

I don't really particularly care too much about earnings per share. I actually think any special is probably going to be around 252 260.. I think i shared in my discord with my community a little bit before. I think it's going to be very, very marginally.

It might even be lower than q1 the reason being in sorry. Thank you for the reason being. In q1, they actually went and hired a huge amount of staff into both berlin and austin. They went and had other expenditures so before that a lot of the expense from billion lusting was capital, uh expenditure, which is not going to be going into the p l as a cost right.

So it's coming off the cash line and the uh in the cash flow, but it's not coming off uh. It's not tesla stream. It's the data, the there! The reports this that's not come out yet, but um uh, but the cost of, because you can't go and say, build a huge factory and go and expense it immediately. That's not like an accounting.

You have to take that as a capital expenditure and you have to like then a pre like depreciated over a number of years and stuff like that. However, things like hiring staff and all the immediate sort of like getting things ready. The final like the final, maybe small, fit out and a whole bunch of other stuff um. All of that is going to be uh, affecting uh affecting the p l in q, one because they're expending all these costs.

You know like berlin had by the time they opened right at the beginning of april uh, three and a half thousand staff already hired. So, a lot of that hiring and presuming will have happened during q1, but despite all those costs being incurred, and especially some of the staff, especially more senior staff will have immediate costs and you know acquiring them by maybe some small options being given out et cetera Et cetera, et cetera, um uh relocation - i don't know, i don't know what it's going to be, but uh, but those costs will be incurred, but no production will have happened in berlin to go against those costs. So, although the revenues are going to go up, i'm actually slightly concerned that everyone's everyone's throwing out like massive numbers. It is true that oh tesla has jumped up again what i don't know um.

So despite people, oh here we go. Let's go and have a look at the data here we go the data's out, let's look, let's look quickly through it and then we'll read through it carefully afterwards, right so q1, automated revenues up significantly uh by 900 million or thereabouts. That's that's a really good sign. Total revenues up uh about one billion, so good.

That means energy is up slightly as well. So that's good! The automated gross margin is insane that number over there uh one. Second here we go. This is also most of gross margin.

This is an absolutely crazy number. 32.9 percent is this: this is extremely good. Even the total gap, gross margin. 29.

If you compare it to kind of the trajectory, these jumps are insane, especially given what i was just saying a second ago uh that is crazy. Oh, my god, 19.2 operating margin for a company that was heavily investing cash, like from from the p l from from ops expenditure during this month, uh the fact that the operation margin jumped so much is insane. Now there were several factors that are going to be impacting this um during q2. We're probably going to be seeing this at some point during this presentation.

They were selling a lot more plaid cars, a lot more higher end. They prioritized cars uh that were higher spec towards the front of the queue to deliver during the quarter, so that, although the total number of cars uh didn't move much, it's kind of shifted towards a more expensive end of car production and uh. The the second interesting point is uh. Obviously, there's been this ramp up in people taking out fsd uh, the third thing being uh.

It's quite it's kind of interesting. The the the model s and model x production ramp were still ramping during the end of last quarter. So those cars have disproportionately high margins in general, so so that's what we're probably going to be seeing in a sec. But let's look through these numbers again, i'm sorry, i'm sorry for the for the zoom on this.

But hopefully you can see this uh well enough. Adjusted 5 billion so we're now getting to this point where net income 3.3 billion, like. If you look at the jumps here, these numbers are nuts because when you begin looking at trailing, uh 12-month numbers in terms of eps and things like that, eps 286 on gaap basis 322. These are crazy, good numbers um.

What is tesla's share price doing in post. In aftermarket uh, let's have a look: what's tesla doing, uh, i'm guessing it must so 3.4 up and after hours is that 3.7. So it's it's jumping up, uh, not surprised there not surprised that, but now let's go and where is it uh? Let's go and look through the results in a bit more detail and read everything, because i'm sure there's gon na be a lot of interesting stuff in here um. Just before we do what we've got nothing interesting.

We already knew the production was a bit uh lower than deliveries. Is that delivery number slightly higher than what they originally announced because they announced one second 310 48, and it is three? No it's exactly the same. All right so uh. Let's go and read everything.

They said i don't know if anyone's, not sure why i have discussed earnings. I just just talked about the earnings just a second ago, all right, all right. Okay, let's go and read uh what this says. Uh highlights cash operating cash flow, less capex is 2.2 billion in q1.

The energy bit towards the end of this presentation is where i'm particularly interested so i'll be quite excited when we get there. Um total debt x vehicle and production uh under 0.1 billion. So, oh my: what did they do? Did they just repay all the debt? Let's have a look at the balance sheet. Okay, let's have a look at the balance sheet, so where are we debt? Okay? No, so i probably misread that, but uh long-term liabilities, other yeah.

Okay, debt is down uh, current liabilities have gone up, i'm guessing be related to new factories, but but debts continue to be repaid uh. I think i think it was auto leasing or something like that. Okay, what's the cash position, cash position hasn't moved, so i'm guessing they've been spending uh a a lot of cash there. Okay, let's go and read: let's go and read: go up! There's lots of pictures.

A lot of pictures to look through in a second okay um. Tell me if i'm, if you can't see or can't hear or whatever um it'll be interesting, it's kind of surprising that tesla is only up so given the results are stellar, they are seriously seriously out there despite the seriously stellar results. Tesla is only three point: six percent up, so if uh four percent four percent up in aftermarket - and i should be using something slightly better than google here - but you know it is what it is. Uh i'll, be better prepared next time around school holiday.

Explain that all right, so um profitability, 3.6 billion uh gap operating income, that's what we saw in 19.2 operating margins - these are absolutely crazy. Numbers 19.2 operating margin for a car company is is crazy. We will see later they have last quarter started showing this new graph of their numbers versus other automakers it'll be interesting to see if they show that as well, because on that graph, that number is going to stand out by a massive amount. If you're, looking through the results yourself go and look at that chart before we get there because i'm if it's in there, it's going to look really good 3.3 billion gap, net income, 3.7 billion non-gaap net income in q1, 32.9 automotive gross margin.

Crazy. Let's read the summary: the first quarter of 2022 was another record quarter for tesla by several measures such as revenues, vehicle deliveries, operating profit and operating margin over 90. So basically, every single good metric uh they completely smashed it out of the park um above expectations significantly above my expectations, so uh, probably above pretty much everyone's expectations. If i'm honest, so that's good, our outstanding recourse debt has fallen below 100 million dollars at the end of q1.

Uh public interest in sustainable future continues to rise, so they're pushing this debt repayment thing, which is, i guess, good, because at the same time they've been building these factories. That means they can now have a lot of cash spent, be interested to see if they say what they're planning to do with the cash, because now they're quite now that the debt is going away completely and i'm guessing some of the other parts of debt are Going to be going as well um in the next quarter, or so the big question is going to be where you have all this cash. What you're doing with it are you building those crazy numbers of factories that you were promising? Are you going to be giving back as dividends at some point? You know like you've got to you've, got to have some plan, or are you going to be investing in other businesses or buying up businesses? Maybe buying up twitter we're going to come to that in just a second all right. Public interest and sustainable future continues to rise and we remain focused on growing as fast as reasonably possible.

Expansion of our production capacity is core to our decision making. In the past two months we began deliveries a model y from gigafactory, texas and gigafactory bill in brandenburg, negligible impact on q1 gross profit, unsurprisingly, because they didn't actually open either of those two factories during q1 and legally did not sell only the car. So you could attribute some of the prepayments for cars that maybe were sold. I guess uh, i don't know exactly what they're going to be doing with that, but yeah a lot of costs not very much revenue.

At the same time, we are putting significant efforts into our in-house cell production, raw material procurement and supply diversification challenges around supply chain have remained persistent and our team have been have been navigating through them for over a year. In addition to chip shortages, recent cover 19 hour breaks have been weighing on our supply chain and factory operations, so yeah. So this has been a really big issue for tesla. They shut down on the 28th of march, so they caught just the last three or four days of the quarter for q1.

The numbers that we're looking at but q2 is where really gets hit hard, especially given that there's going to be processes where cars were starting. The production line, but we're due to complete so anything that was kind of rolling into april uh, was stopped as well, and the biggest issue here really for q1 delivery is because tesla have this so the biggest factor for tesla shanghai and in shanghai. The way that the manufacturing works is they manufacture cars during the first month for sale in europe, australia and some other markets. They ship those cars away and, generally speaking, like roughly towards the end of the second month, they start producing cars for sale within china.

So you see the first like month and a half to two months worth of cars going out and we are now going to be missing um a significant chunk of that, because we have had 18 days during april plus a few days before april, where we had A shutdown of shanghai, but then we we had one day delay for the factory to then reopen we're now only operating on a single shift, so the production, even now that it's open is gon na be down. But that's gon na have a disproportionately higher effect on the q2 numbers, because, when we um, when those cars that were due to be shipped to europe are not going to be produced, they have two choices: did they not ship cars to europe at all? This quarter and that risks you know, customers in europe being not particularly happy by their cars being delayed by an extra three four months as a result, um so tesla would only do that to kind of bump their share price right, but or bump their production and Delivery, not production but delivery numbers, because if they do start shipping them, then the potential risk there is that the delivery will only take place next quarter. So that means this quarter will have a relatively high production number, but a much much lower delivery number, which is going to look a bit odd and a bit out of place. Okay um.

So so that's that that's probably going to be one of the questions that we're going to be covering uh on the call, so so we'll come to that in a sec. Furthermore, prices of some raw materials have increased multiple fold in recent months. Unsurprising, there's been some metals impact alongside oil and gas that are used for the manufacturing themselves as well. So a lot of issues going on a lot of geopolitical issues on top of the existing supply chain issues they've already had, and obviously with a lot of uh demand for batteries in general worldwide, not just from automakers but generally in the world.

There's been a lot of pressure on a lot of the components and a lot of things that go into them. Tesla been leading the way and trying to find alternative solutions through iron-based batteries through a bunch of other stuff. But um we'll see all right. The inflationary impact on our cost structure has contributed to adjustments uh in a product pricing, yet tesla have increased their prices for cars over uh, like i think two or three times just in the first three months of the year during q1, that's probably contributed in parts To the higher the higher revenues but they've also just been continuously every few months, increasing them like it's almost like a bi-weekly event where some model gets an increase and it's interesting because people are quite comfortable like tesla goes increases or you know a car price by Five percent by ten percent - and this happens like literally all the time and i was like yeah - that's fine, that's! Okay! I'm okay paying an extra two and a half thousand dollars for my model y, but then uh last week they were, they went and decided to start uh charging for the charger cable for plugging into regular main.

So, like the kind of thing that you have in case, you find yourself in the middle of nowhere without a supercharger without a dedicated charger in your home, and people took a massive offense to that, because, oh my god, i'm gon na have to pay an extra 250 or 200, whatever it was for this charging cable, not everyone needs it. Everyone's those same people completely swallowed the like 25 price increase on those same exact cars that preceded to that particular event. So i thought it was quite interesting because it's basically the same. It's just an option: it's like a much smaller optional price increase, but people really didn't like it very much at all by the way hi to everyone.

I'm sorry, i'm not replying to all the comments. Uh and it's nice to see a bunch of channel members and some people from uh patreon here as well uh. Thank you very much for joining uh. It's very nice to have you here, okay! So, let's keep reading despite a continued focus, so the inflationary impact infrastructure is contributed to adjustments to product pricing, despite a continued focus on reducing a manufacturing cost where possible so uh.

The recent opening of the two new factories is further pushing the price down. So the 4680 cells in austin are pushing the price uh over there down of production, because those cells offer a better efficiency price wise, as well as a small small benefit in terms of performance, so um, but also that they are now casting. So the model wise uh are being casted uh the front part and the rear part uh are those factories. With these new giga pressures that have been stored, the same price is going to be expanded to other uh facilities.

I think in q3, they're saying um, so so that's uh all reducing the cost and the sp and increasing the speed of the manufacturing um. So that's all good. Okay. We would like to thank everyone who attended our factory opening events or watched live at home.

We're excited to see people so passionate about mass manufacturing, sustainable future. Okay. The last paragraph is like great. We have some parties - okay, so just to recap for anyone, who's joined late, uh very quickly.

Let's go through the numbers here for q1 uh. My mouse is doing funny things what's going on all right, let's i'm trying i'm trying to zoom zoom it in so that everyone can see, but for some reason my mouse doesn't want to doesn't want to work very well: okay, so 16.9 billion dollars in automotive revenues. This is actually really surprising. They managed to collect 679 million dollars worth of regulatory credits.

That is high. I think most people were predicting. This number is going to now go away now that everyone's manufacturing evs and everyone kind of thought - okay. Well, maybe there's going to go dropped.

300. 250. However, remember in q1 that gm uh stopped producing cars, they basically didn't produce anything during q1, a bunch of other people, so ford have recently stopped taking on orders for their mackie because they are like pausing suspending production without telling people um. So there's definitely been a lot of issues that, especially with the supply chain that are fixed, seem to be hitting other companies much harder than they're hitting tesla tesla seem to be slightly more favored by the suppliers of all of these things, um so uh.

So, that's that that's that's pretty interesting uh that number jumped over there what's my greatest profit, uh billion uh, which is an extremely big jump more than people spent and and this margin the automatic gross margin. Thirty two point: nine percent on on gross basis, so this is actually like taking the cost of making the cars. That is a pretty crazy number within the uh automotive sector. Um.

If you look at the same number for any other manufacturer, i'm sure we're going to be seeing that chart in a second, it's gon na be a lot lower, total revenues, 18.8 uh, total gross profit, 5.5 29 margin and for anyone who specifically cares about the profits. We've got: five billion will break the five billion mark on adjusted ebitda 26.8 ebitda margin. Net income attributed to shareholders is 2.86 per share on a gap basis 3.22 on a non-gaap basis. By the way, i've seen a few comments in here: um yeah um.

If you haven't been following my channel um, i i have a lot of tesla shares. My biggest position in my portfolio is tesla. I'm going to cover the photos in just a second, let's look at the energy first, but i also i'm not blind to the fact that there are going to be issues that i highlighted just now that i've been talking about in q2 production, and i think there Is a definitely a risk when we begin seeing those numbers materialize just because of what's been happening recently with any company that showed any sign of an underperforming quarter uh, irrespective of potentially some of their longer term outlooks um, the impact can be quite severe, so i Think just kind of closing your eyes and sticking fingers in your ears and saying yeah yeah. I don't care you know like tesla is great whatever i think like um.

I think you got to be um understanding of the macro economic environment, understanding of what is likely to happen even like i'm holding my shares, but i'm also aware that there's going to be headwinds all right. Okay, let's talk. Let's quickly have a look statement of operations, cash flows, one second, where is uh? Where is the p l? Here we go. Let's have a look, uh, no balance sheet piano here we go so i'm sorry.

This is a bit small, so you might not be able to see it very well uh how how much? How big can i make it? So you can still see everything on here: okay, so um. Let's have a look down the energy side of things. Energy generation and storage. Um went up, no went down 616., so, despite so, they are now some some really big projects they published pictures of.

I think it was in alaska or somewhere they built a huge ray and and some other places, but services has gone up uh by 200, so this is like probably going to be. The space is going to be exploding as fsd and other things begin. Getting more traction uh, the marketplace: the building within cars, i'm not sure exactly how much traction that particular bit is going to get but uh, maybe some um, but uh automotive, uh leasing, uh up up slightly so on the energy. It's quite disappointing because, obviously like in a lot of people's predictions kind of people, saying when is this energy part of the business going to start actually uh driving? Anything because look here is the energy revenue and you can't see it maybe, but it's 616 million dollars, but energy, the cost of revenues just for the gross margin of energy 688..

Oh my mouse is doing funny things. It's not liking me. I think, because i'm trying to do too many things and it could be the same time but um so energy is losing money and contin and uh in q1, and the revenue is not going up so so so that that side of the business is something to Be concerned about because long term, this is where the value should be had and the question is: are they actually going to be ever beginning to get the traction needed there and the 4680 ramp is probably what's going to be the reason so they're waiting for that To start actually pumping um on that front, they're, not focusing attention on that they're, not focusing people, i'm guessing! That's! What's going to be uh the the the conversation? That's where the conversation will go, but now, let's read the financial stamp summary, so we've kind of looked at uh the numbers. Let's look at the financial summary uh revenue.

Total revenue grew 81, year-on-year in q1 to 18.8 billion. Year-On-Year revenue was impacted by the following items. By the way elon musk did recently say that the 50 a year target that tesla have is no longer applicable. I think he said that he's now considering uh, that tesla should have something more like an 80 to 100 percent target um, so uh, it's interesting that we are above that and the question is going to be q1 q2 accepted uh.

What's going to be the situation with this year and year, growth when we progress through um to uh q3 and beyond as austin and berlin, both ramp, because the the capacity there potentially can be can be very high growth in vehicle deliveries, yeah increased average selling price. So that's the bit that we discussed before as the likely reason so both selling more higher priced cars in terms of models, but also within the models prioritizing cars that are more expensive for deliveries. Uh growth in other parts of the business uh interesting interesting. In terms of what this other part of the business is because, obviously energy is not growing anywhere uh, but the services, the services line item, grew slightly um.

I think i think uh. We should see what they mean by that profitability. Our operating income improved to 3.6 billion in q1, resulting in a 19.2 operating margin. This profit level was reached while incurring sbc expense attributable to the 2018 ceo award awarded 48 million dollars in q1.

Year-On-Year operating income was primarily impacted by the following items: the same growth in vehicle deliveries, increased asp, reduced cost per vehicle, despite inflationary pressures, lower stock based compensation, expense increase in regulatory credit, sales, rising raw materials, commodity logistics and expense. Expedite costs right, interesting logistics and exploit, because presumably these are the ones that are going to be beginning to come down as we're seeing ramping in those additional factories. So that's one to keep an eye out on increasing operating expenses. All right, um cash quarter end cash.

I have some questions on that be interesting to see if this point gets picked up, because cash obviously hasn't moved uh. So so so what's been uh, where has it been going? I'm not looked in any detail by the way i am going to be missing a whole bunch of stuff. If you are picking up things that i am not seeing. Please tell me, because i am seeing this live, and trust me talking about it live is far harder than just going and looking at it all by yourself life.

So i'm going to make a lot of mistakes and i'm going to forget and miss things and not see things. So if you see things, please help me out and go and post in comments a quarter in cash cash equivalents and short-term marks, with securities increased sequentially by 0.3 billion dollars to 18 billion in q1 to remain by free cash flow of 2.2 billion partially offset by Debt repayments of 2.1 billion um, their repayments, are going extremely well for a company. That's been investing so much in capex. That's an extremely strong sign because it kind of indicates, if you just think about the 17.5, whatever it is billion dollars, they have sitting there and like what they can do with it in terms of pure cash and i'm guessing.

This is including quasi items as well. That can buy you like probably close to three factories uh just there and then without having to earn a single dollar. So so that's gon na be interesting. Okay, operational, summary uh.

We already knew the production numbers uh. 310. 000 deliveries. 305 000 produced um.

So we have global vehicle inventory supply three days. This is a number that's sort of like a rough indicator of demand for the car, so as the ramp in production and deliveries is increasing. Also, the number of days of inventory that they have at any one point is reducing, so the demand is rising faster than the rate at which they're increasing production and the rate of production is up 69 year on year. So all this stuff will be like when people say hey, look like tesla's demand is dropping.

Tesla is like it's passed it into fire, and these are the numbers that you need to to look at to be aware. It's going to say, um. The data is showing the exact opposite. Three days: wow uh energy, solar deployed 48.

Nobody really cares. I mean i don't really care. I think that's like this. An irrelevant side, hustle business um, but storage deployed 846..

Oh, my god. It's stopped again! So look um! Typically. Q4 uh tends to be like a big number for storage, but they said that q4 was down because uh the they chose prioritized batteries going into vehicles instead of storage, and obviously it's dropped again over here, so yeah this 90 year-on-year grid, because you're comparing it to This q1 number here, but these are highly volatile at the moment and really we would have wanted to see these grow but they're not growing. I'm guessing we're going to address this on the earnings score at some point directly or through a question uh, because people - and it's really close ties to the 4680 ramp like when is the ramp going to be big enough to be able to supply all of the Different factories, where how many applications they'll be producing and also to begin ramping, this energy business uh, because that's the obvious next expansion opportunity, storage service locations, uh opened up another 18 stores mobile service fee, great superchargers, okay, the superchargers grew by a little under 10 uh Quarter on quarter, supercharger connections grew by seemingly a little bit less than that, so they they based on this are building some a few more smaller superchargers than the average of what they currently have um.

The the difficulty is that they need to ramp this. In my opinion, um a lot more a lot faster at some point for two reasons: one they had they manufactured uh. If you look up here somewhere wherever it is, they manufactured three hundred and five thousand cars and sold three hundred and ten thousand a quarter and during this um by the way, uh there's been a few people question. Thank you for answering the questions for everyone.

Who's answering the questions on my behalf, really appreciate it, but i'm going to be streaming all the way through to past. When the earnings score happens, the earnings score is going to be happening in one hour from now uh, which is going to be 10 30. Uk time, 5, 30 p.m, est 4, 30 p.m. Central time uh, i think about that right.

Maybe i screwed something up whatever it is in one hour from now um, so the difficulty so the problem with with the supercharger that uh is is this number is quite high because in total, before this quarter, i think i can't remember exactly. I did the math at some point, but it was like two to two and a half million cars on the road, so they they are adding uh significantly more than 10, currently in a quarter to the existing total tesla fleet. If you like, however, the volume of superchargers is not expanding in the same rate, and there are already issues in some of the more densely populated areas in in places. I know people have destination charges and there's an increased uh focus people installing them at home.

It's the fire, however, if tesla really wants to do this, you know crazy expansive uh growth in selling their cars. They're gon na need to begin ramping, and i said the same thing last time, because the rate of increase in supercharges is substantially below uh. The rate at which the cars are growing and that's potentially going to cause issues down the line. You can kind of see like the the the rate of growth here so 38 year-on-year 37, while the cars are growing at not quite but almost double that rate that potentially is going to cause issues, but also, if you remember, i think it was two or three Quarters ago uh elon musk made that bold statement, and maybe it was even before that and they were saying that they're going to do a trial run and i think they did in denmark and norway, where they're going to be um, offering the owners of other electric Vehicles the ability to use superchargers at cast and charge them more than you would charge tesla owners and if they really want to become like the new default because they they are first to market - and i know, there's a bunch of other there's like electrify america.

In the us and a bunch of other people trying to do this in terms of the actual product, the ease of sorry, i need to drink more tea, the ease of use, the um, the simplicity of it. The supercharger is really doing like doing a lot more and if they really want to become the energy provider of choice to electric cars as well, which i think is a very smart move, because it combines the two things they're, particularly strong at um. The mega packs. Potentially, storing energy and then the superchargers are dispensing it to uh to other cars.

They're gon na need to ram that up and again there's no signs and this. This is not really necessarily at the moment constrained by uh any any issues with batteries so uh. What we'll see uh, netherlands yeah some of you say, netherlands, okay, i got that one wrong uh. They were doing that trial um, so so it'll be interesting to see.

If they address that point at all, i'm guessing it's probably going to be avoided and nobody will even notice it all right. Let's read this uh first, let's look at this table because this table is still the same. Shanghai is apparently currently at a greater than 450 000 and given that they were manufacturing at more, like 750, 800 000 annual run rate uh over the last couple of quarters, excluding the times when they shut down that isn't somewhat conservative estimate. California they're saying they have a 600 000 capacity, just like uh.

It was before in berlin and texas they're, not indicating anything just yet early ramp. So we'll it'll be interesting to see that previously said they read me for 500 000 in each, but again how how uh stand back those numbers are. We will have to find out um. Interestingly, if you look here, we have model y early ram production.

Cyber truck in development - but here is the here's and i point to the side before um they have tbd so additional potential locations for tesla, semi, royster and future product a future pro has been in there. We were talking about, maybe it's model 2 or whatever. The smaller compact car now, potentially maybe it's gon na - be that robot taxi uh. It could be anything, but the problem is people keep saying uh that uh the tesla semi's gon na be manufactured in austin, and i think they presented it at the austin opening as well uh.

But there doesn't seem to be uh the right amount of space and capacity, especially if they're going to be manufacturing cyber truck in the existing phase, one building as well um - and this is indicating that potentially so they manufactured the first initial handmade, pretty much uh models In nevada, because they have a factory in nevada where they build energy stuff, not car stuff - so imagine a few of them there and they were testing them there. So are they going to be expanding in nevada? Are they going to be building a phase 2 location within texas, in which case should this be under texas anyway, let's read what it says over here: uh one. Second, let me zoom in on this, so you can read it a little bit better with me. Okay, so in q1 we saw a continuation of global supply chain transportation, labor other manufacturing challenges, limiting our ability to run our factories at full capacity, us, california and texas.

In april 2022, we began model y deliveries for our new factory in austin texas, at our cyber rodeo opening party, we delivered the first vehicles with 4680 in-house made sales single piece front body, castings and structural battery packs. All things we discussed. We didn't really touch on the structural battery packs, another innovation where the battery pack is part of the hard structure, if you like, of the car so traditionally, and how every other manufacturer currently makes them pretty much. I think there's maybe one exception, but the back.

The car shell is made if you like, and then the battery pack is like a component that you fit within the shell, and the interesting thing with the structure about battery packs is that the actual structure of the pack itself is part of the hard shell of The car and that saves on production costs it saves on weight. It saves on production timelines as well, so so that is a technical, but a very useful uh innovation tesla's been pushing it's probably going to become standard uh with other manufacturers as they develop their own tech as well. This is an important milestone for a capacity growth efforts later this year. We'll expect gigafactory texas, we'll be able to produce model wise, using both structural packs with 4680 cells, as well as non-structural packs of 2170 itself.

Now. This is interesting because this to me is a negative statement, despite how it sounds so um. If you had the capacity, the the belief that you have the ability to go and ramp 4680 production to where you needed to be 4680 cells are cheaper on a per unit of energy to produce. They give some slight benefits in terms of heating and distribution of heat in terms of performance, not huge, but slight, slight benefits as well.

So if you were able to ramp that you would probably want to go and use them in every car that you make because they're like better in pretty much every single way. So the fact they're continuing uh and they're, saying that gigafactory texas will also be manufacturing. Non-Structural packs, with 2170 cells, my take on that is um. Potentially the 4680 ramp is going to take a bit longer than people expect.

So we're going to be like uh continuing to sell cars to 2170 cells going well into next year. Uh, probably like maybe even beyond that and and the question people are gon na are gon na have is why is the ramp slow uh number one number two um like what what commercially commercially is there? Is there a good reason? Are they substantially cheaper with 2170 cells, uh and and what does that mean so so that statement there at the end uh the gigafactory text is the brand new factory where at the opening they were proudly showcasing the manufacturing of 4680 cells they rolled they showed a Whole video and say all of the shots in that video were filmed at this factory, so we're making a really big point out of the fact that 4680 is going to be uh are going to be the thing, but the fact they're already planning to start manufacturing. 2170 cells, in my mind, that's a negative and um, and that's not necessarily a good sign all right. China, shanghai, while weekly production rates were strong in q1, a spike in cover 19 cases showing high results in the temporary shutdown of our factories.

Well, as part of a supply chain, remember that shanghai also closed for chinese new year and also there was a three or four day: shutdown but 10 days before um. The shutdown due to um uh v2 cover 19 happen as well. So there's going to be there's going to be issues with production in q2, uh for sure okay, then we say, although limited production has recently restarted, we continue to monitor the situation closely. I'm guessing we're going to have a question on this.

I'm guessing it's going to be one of the two most popular questions. I have the questions open here. I haven't really looked through them. If i'm honest, i was doing bedtime just before coming here.

So um production at gigafactory, berlin, brandenburg started in march 2022, using non-structural packs with 2170 cells. Another kind of i highlighted this before and the fact that they started a brand new factory with 2170 cells indicates they're, probably not expecting the ram 4680 cells to be going particularly fast, uh, obviously, some some constraints in the production uh, so they have cater road facility. Uh that they that they test run uh production on them, they're now manufacturing, austin, uh, there's gon na be a lot of questions on this. I think if everyone else reads this the same way that i'm reading this okay, ultimately gigafactory berlin, brandenburg will be able to produce model wise, using both structural packs with 4680 cells, as well as non-structural max of 2170.

So again, even when they make the switch - and there are rumors that the switch is going to happen in q3, i reckon it's probably more likely to happen in q4 or something like that, given the delay to all timelines they're saying even when they switch to 4680. So it's not going to be on all production, it's only going to be on some of the production, so the big question is going to be uh. Why that is? Okay! Here is a graph of old lines going up us, canada, uh europe and china, and all the numbers are going up very nicely. China see this little dip in terms of the growth rate.

A little bit of that dip is probably going to be that uh pause in the third month of the first quarter in march. The pause at the end of the month uh the pause like 10 days before that and the chinese new year. So that's probably partly responsible for why we're seeing that slide dip over there, okay market share of tesla vehicles by region. This is this is interesting because we're now looking at this and going look tesla is beginning to actually take an actual market share of the total vehicle production.

So what you know when uh, if you've been investing or following tesla for a little while, like i have like what? What, when you watch people talking about it a few years back, be like it's negligible. It's like you know the number of cars that tesla manufacturer is a rounding error. That is a common phrase. People use for any other large manufacturer.

So the the interesting question is going to be when the rhetoric begins fading because we're now seeing you know two percent-ish average uh and us over two and a half percent of all cars being sold being tesla, and certainly you i don't know where you live in The uk, where i live, uh the increase in the cars that you see that are tesla. Oh my god. What's this? What's this chart uh total vehicle growth? Oh, this is hilarious. I'm gon na tell you why this is hilarious.

The super bowl effect, okay, uh is, does it say something about the super bowl effect in here, because it's hilarious, uh i'll, tell you it's not it's not saying anything. I know why they introduced this graph in here. So tesla doesn't spend money on marketing right. So uh, so what was interesting is when the super bowl aired.

The the prices for super bowl ads actually went up significantly this year compared to last year, because i think, like they kind of really they kind of thought that oh coverts, going away everyone's going to be spending the marketing dollars, et cetera, et cetera, and the funny Thing is tesla, didn't spend any money, but a lot of other ev makers did lucid included. So a bunch of other people went and spent a huge amount of money on that, even when they weren't actually selling cars at that time. So they were like marketing cars that weren't going to go on sale for a while, yet have not even gone on sale now or they shut down production but ran the ads anyway and and look look who got all the sales without having to spend any of The dollars - i love it because this graph was just introduced here just to take the pins out of all the other ap makers and all the other car companies who basically paid for tesla's money, uh cars to be advertised.