 call, please limit yourself to one question and one follow up. Please use the raise hand button to join the question queue. But before we jump into Q&A, Elon has some opening remarks. Elon? Elon! So just to do a Q3 recap recap, Q3 was another record quarter on funding levels. We had our industry leading operating margin reach 17% and our free cash flow surpassed $3 billion in Q3 and, of course, $9 billion in past 12 months. As our package ran, it was looking forward to a record breaking Q4. So it's really, you know, not an award. It looks like it will have an epic end of year. So Q4 is looking extremely good. On the production ramp, Gigabrillin, the chief of the milestone of 2,000 cost made in a week, and is ramping rapidly. Diga Austin or Gigatexas should reach this milestone price. Just yesterday, we extrapolated yesterday's full grade, it would be 2,000. The production of 4680 cells has provoked in Q3 compared to the previous quarter. We are finally gaining rapid traction on the 4680 cell. And it's output is growing rapidly and we expect it to start incorporating in the cost and having it be a significant portion of our production here in Texas in the coming months. We also have our second generation of manufacturing equipment for 4680 cells in Texas, which continues to show great progress on the original pilot line pretty much. The pre-made factory team once again reached record production in Q3. We intend to keep raising production in pre-made. At the end of September, we hosted our second AI day into the first prototype of our Oculus robot, the latest updates on our Dodo training computer and improvements of full self-driving software. Our vehicles have now driven at like 60 miles in full self-driving beta mode and December continues to grow exponentially. Our goal with that AI day was to push recruiting and we've seen a massive influx of world-class artificial intelligence, engineering, and scientist resume. So it generated tremendous knowledge from some of the best AI researchers in the world. I can't emphasize the importance of this enough because I think it finally has become clear to the most modest AI technologist in the world that Tesla is one of the best. And this quarter we expect to go to a wide release of full self-driving beta in North America. So anyone who has ordered full self-driving beta or full self-driving will have access to the FSD beta program this year, probably about a month from now. And then obviously anyone who buys a car and pushes the full self-driving option will immediately have that available to them. So the safety that we're seeing when the car is in FSD mode is actually significantly greater than the safety we're seeing when it is not, which is a key threshold for going to a wide beta. Let's see with respect to demand. We've got a lot of questions about demand in recent weeks. I can't emphasize enough we have excellent demand for Q4 and we expect to sell every car that we make for as far into the future as we can see. So the batteries are running at full speed and we're delivering every car we make and keeping operating margin strong. We're still a very small percentage of the total vehicles on the road, other 2 billion cars and trucks on the road, but we only have about 3.5 million. So we've got a long way to go to even reach 1% of the total fleet. It's based on many things, but certainly questions that I get on Twitter about buybacks. I think everyone on our board members has gotten questions about buybacks. We've debated the buyback idea excess with board level. The board generally thinks that it makes sense to do a buyback. We want to work through the right process to do a buyback. It is so much possible for us to do a buyback on the order of $5 to $10 billion, even in the downside scenario next year, even if next year is a zero year, we still have the ability to do a $5 to $10 billion buyback. This is obviously pending. It's likely that we'll do some meaningful buyback. In conclusion, while the market means we're on the short term, it's very important to focus on the long term. That kind of says it's not with about sure it's not with us, and I think long time investors obviously recognize this, which with Tesla, we have local ups and downs, but long term trend has been extremely good. So a year ago, I said, I think on our earnings call, I thought it was possible for Tesla to do with more than Apple, which was then the highest cap company I think on the market. At the time, I think it was around $700 billion. I said it required incredible execution, at least some luck, and we didn't indeed achieve that. Tesla went back, Apple's current market cap, in fact, which has a new worth more than Apple and Saudi Aramco combined. That doesn't mean it will happen, but that will be easy. In fact, I think it will be very difficult for quite a lot of work and very creative new products. For the first time, I am seeing, I see a way for Tesla to be the value of Saudi Aramco. I think that's, I haven't quite seen that yet. This is the first time I've seen that potential. So my portfolio, I think we've got the most exciting product portfolio any company on earth, some of which we've heard about, some of which we haven't. We're building a cyber truck line here at the Texas Orson, or a race and the rubber taxi platform design. I've got a cyber truck store there. With respect to what our year production capacity in the United States has to be possible without the incredible team that we have here at Tesla. So I'd like to give a huge shout out to all of our factory employees, engineers, executives, and the whole Tesla team. You guys rock once they can have it. Thank you. Thank you very much. And Zach is all for the remarks as well. Yeah, thanks Martin. Just to continue on Elon's theme, I just want to thank and congratulate the Tesla team for achieving record vehicle deliveries, production, and storage deployments in the third quarter. On automotive profitability, our gap operating margin was 17.2%, with automotive gross margin at 27.9%. Operating margin is one of our best yet with improvements in operating leverage. However, Austin and Berlin ramp costs weighed on our margins, particularly if you compare it to Q1. Removing regulatory credits and Austin and Berlin, our operating margins would have been our strongest yet, and auto gross margin would have been nearly 30%. But while small and growing, the car we built in Austin and Berlin is contributing positively to profitability. We also continue to experience margin headlands associated with macroeconomic conditions, as we've discussed at length on prior calls, in particular raw materials, logistics, and foreign exchange was a big part of this past quarter. On energy profitability, we achieved our strongest gross profit yet for this business, driven primarily by record volumes of our mega-packing and firewall products. Our free cash flows were also a record despite an increase in cars and transit at the end of the quarter, which has a negative impact on working capital. Specifically, on cars and transit, as noted in our press release on October 2nd, we've started to experience limits on outbound logistics capacity, which we didn't anticipate. This issue is particularly present for ships from Shanghai to Europe and local trucking within certain parts of the US and Europe. Our historical operating pattern of batch building by delivery region leads to extreme concentrations of outbound logistics needs in the final weeks of each quarter. Just to put this in perspective, roughly two-thirds of our QE deliveries occurred in September and one-third in the final two weeks. As a result, we've begun to smooth regional bills throughout the quarter to reduce our peak needs for outbound logistics. We expect this to simplify our operations, reduce costs, and improve the experience of our customers. As we look ahead, our plans show that we're on track for the 50% to annual growth in production this year, although we are tracking supply chain risks which are beyond our control. On the delivery side, we do expect to be just under 50% growth due to an increase in the cars and transit at the end of the year, as noted just above. This means that again, you should expect a gap between production and deliveries in Q4, and those cars in transit will be delivered shortly to their customers upon arrival to their destination in Q1. Austin and Berlin ramp costs will continue to lay on margins, although we expect the impact to be less than what we saw in Q3. And as Elon mentioned, we are continuing to build as many cars as possible while also maintaining strong operating margins. Thank you. Thank you very much, and let's go first through the shareholder questions. The first shareholder question is, even the stringent battery content and assembly requirements for consumer tax credit eligibility under the Inflation Reduction Act, can you speak to us about the ability to meet those thresholds in each of 2023, 2024, and 2025 with your existing and planned supply chain? Well, yeah, I mean, I think just I'll have to say we do expect to fully meet the IRA's requirements. We'll review the passing of the Inflation Reduction Act as a significant boost towards a salary and omission, while also scaling the battery supply chain at large in the United States. We expect treasure to publish detailed guidance by the end of the year, until such time as typical to pull it from the eligibility craze area, but we believe Tesla is in a very low position to capture a significant share of that sort of solar storage and also watch cables. Yeah, like I said earlier, we're going to go basically pedal to the metal as fast as we're going to get to 1000 gigawatt hours a year of production in the U.S., but it's integrated. The next question is what updates can you offer on the backlog and the recent order intake trends, especially outside of the U.S., and especially in China? China is experiencing a bit of a recession of sorts, which is probably not going to continue to occur more commercially as a recession of sorts. The U.S. actually isn't pretty good. North America is a pretty good help. A little bit bad is raising the interest rates a little initially, but I think they'll eventually realize that and bring it back down again. The bad is a little harder than it would otherwise be, but as I said earlier, I'm confident of a great fuel anticipate continuing to grow our production sales deliveries by on average 50% a year as far into the future as we can see. Thank you. Actually, one caveat I should say, growing production by 50% every year, because deliveries, we're trying to smooth out the deliveries and not have this crazy delivery wave at the end of every quarter. In fact, they weren't enough boats, they weren't enough trains, they weren't enough hard carriers who actually support the wave as they got too big. We actually have to smooth out the delivery of cars in the quarter because they were just odd enough transportation objects to move them around. Thank you. The next question is, do you still expect 50% annualized growth for the pursuit of the future? Is this also true specifically for the Chinese domestic market? Do you expect to need to cut vehicle prices or offer incentives in any market to sustain the demand? Or has demand remained stable, or is it even rising? I've got a few questions there. We want to focus on a high level on everything that's possible here. To best of our knowledge, we believe Tesla will continue to grow deliveries and revenue production for 50% for greater company and no growth rate. It appears to be a year that is a little less, and then in some years it will be a little more or a lot more. In some of our out-year planning, we see potential annual growth rates that are in excess of 50%. Thank you. The next question is, can you tell us more about the product feature road map beyond new models and FSC, and especially for interior and powertrain of existing vehicle models? Sorry guys, we can't jump the gun on future product announcements. Committed to continuous improvement? Yeah, we obviously have to continue. But also be committed to continuous improvement. But also be committed to continuous improvement. Yeah, at Tesla we've always been committed to continuous improvement. So, as friends of mine have asked me when should I buy a car now, because we just keep improving the cars. So, it's always been the latest Tesla? Yeah, it's always been the latest Tesla. Every now and again, we do have some big technology of where you'd like to buy it. That's an excellent, the best car on earth. There's nothing even close to mine. Just try one. The next question is, we keep hearing of dire energy prices in Germany this winter. Do you have Tesla's plans to combat power cuts? And will there be any delays in ramp up production for bigger Berlin vehicles? Yeah, I can take that. I think two points on this question. The first is that I'm showing you guys the Model X on the screen right now. That is the car he just said is the greatest car in the world. The Model X Tesla. We have no indication whatsoever that we will have to cut our production. And we put in place backup plans and we're working through the supply chain as well. Nearly all of our suppliers are prepared as well. We'll see how this plays out, but it's not something that we're terribly worried about. Thank you. And the next question is, how is production planning going for the Cybertruck? What is the initial phase one production target? Cybertruck? I want the Cybertruck so bad! We're still on track to enter early production in the middle of next year. We started out in a build of all of the battery, battery, and existing batteries. Where can I drop my beta? That was an interesting question. In a few weeks! That's going well. And we continue ramping up through the end of next year in 2021. That's going to be sick. That's going to be a wall of famer next level. Sorry it took longer than expected, but there were a few things that got in the way. Insane levels of supply chain shortages. I want that Cybertruck so bad! It tells a semi, of course. We'll be handing over our first production test in semis and I'll be there in person. We'll be ramping up production of the Tesla semi, which is a max load heavy truck. No sacrifice to target capacity. Exactly. Very important. No sacrifice to target capacity. 500 miles range. Just 500 miles with the cargo on level ground. Not that. The point is it gets a long range truck. Even with heavy cargo. It's impossible to make a long range, heavy duty, classic truck. What are your assumptions about what out of the ground and what out of the mile? They would look at me with a blank stare and then say hydrogen. I'm like, no, that's not the answer. I was thinking for numbers. That's not a number. It's an LRT on the VR table. You obviously don't need hydrogen for heavy trucks yet. For semi production through next year. It takes about a year to ramp up production. We expect to see significance. We're tentatively aiming for 50,000 units in 2024 for Tesla semi in North America. Obviously, we'll expand beyond North America. These would sell I don't know if they sell sacrifices, but they're much more than a passenger vehicle. The 50,000 heavy trucks of this nature would be worth several lot of lives. The next question is what is the progress of the 4680 cell ramp and what factors determine whether vehicles get 2170s versus 4680 cells and how will that change in the next year? Yeah, ramp is going well. As Elon said, Tesla output is up 3x quarter over quarter and production is 1,000 cars per week. This quarter, as we said last quarter. Our focus is now shifting from 100% ramp to cost and further expanding production capacity in North America. As Elon also mentioned, on the 2170 versus 4680 in our factories, we really attempt to minimize factory complexity and product change over. I'll still make sure we get enough new product into the field to learn how it is performing. That sort of makes this going to shift as the 4680 scales here and overall factory rank proceeds in Texas. Basically, we're not sure how 4680 ramp is growing exponentially and we're just looking at this yeah, it's going to be a very major factor in the future. They're like, how does tax upset them? Yeah, towards 1,000 people an hour a year of annualized production in the United States. We need to get 300 to 400 tower one hour systems to accomplish our goal. Yeah, this is roughly the two transition to sustainable energy. Our calculation for both stationary and vehicles is 3,000 people one hour. You're like, one tower one sounds like a lot, but it's a lot of tower one hours to go. Yeah, that's just it. On the cathode side this is the main cathode we think probably be mostly on to very, very high tonnage. The exact percentage is hard to figure out, but it's probably going to be twice as much higher cathode as the main one. And then this the manganese wild card as well, possibly not American. On the semi-track, which we already addressed, so I'm going to skip to the next one. Can you talk about how Tesla could adjust if we were to enter for long recession, including new product prioritization investment flexibility, new factory versus factory expansion, service support infrastructure, productivity cost measures and demand stimulation of alternatives. We're very pale to the metal reducing our production of the enemy for a recession on our recession. It's the 1% point you made. Yeah, exactly. I think the public at large realizes that the world is moving towards electric vehicles and that it's foolish to actually buy a new gasoline car at this point because the residual value of that gasoline car is going to be very low. So I think we're going to be in a very good spot. I would say it's recession proof, but it's certainly a recession resilient or it has made the decision to move away from gasoline cars to electric cars. We're trying to shrink the generation to sustainable. You need solar and wind with the stationary battery pack to buffer the power. We're seeing a 24-7 power because the wind doesn't blow with time. The sun doesn't shine with time. So that also says we actually push this stationary storage. Sorry, just to put before you jump in, Martin. I think where our cash balance is, what our forecasted cash generation is, where our margins are as a company, we can withstand quite a lot of downside before we would have to dig into our capital plans, supercharger expansion, product lineup. So the business has done quite well over the last handful of quarters. And this is a real opportunity I think for the company to press forward in the most aggressive way as Elon has mentioned. Yeah, we're trying to model out, let's say, 233 is a brutal recession year even then regenerate meaningful cash. Once you get out of that 234, let's go to the last investor question, which is the progression from Tesla's first platform with SNX to the second platform with 3NY led to 50% reduction in cost of goods sold. What do you see Tesla's third platform being released? And what level of cost of goods sold redaction could you achieve? We don't know exact dates, but this is worth the sport down the engineering floor. We're working on which is somehow important to that platform that we, as you've said to us many times, run up to the 50% number again. It's like, do we make two cars with the amount of effort that two cars takes us to make one massive amount of hard work and some luck to get to where Tesla is with as much as Apple and Sader and Co. Provides more than including Optimus. Go to Annalise Questions next. The first question comes from Adam Jones from Morgan Stanley. Adam, go ahead and unmute. Great, can you hear me? Yep, yep. So Elon, would you consider vertically integrating into mining? That's my first question. We'll do whatever we have to do. We do not personally concern ourselves. We don't vertically integrate just for the hell of vertically integrating. If there's a great supplier who's better than us or we think practice is very good, or even whether economics is a comparative advantage suggests that we should use that supplier even if we could beat them, but we could just do something else that we won't productive, then we would in ourselves in that case. If we have to go to mine. Thanks, Elon. My follow-up is, you know, one terawatt hour of manufacturing in the United States vertically integrated. I guess my question is, what would need to change with U.S. permitting laws? What would be your message to this administration or next? And do you think you could do a terawatt hour? What's the going price of that? Can you do that for under a hundred billion bucks in the States? Thanks. The message to the government would be that there should be conversations with a number of senior government leaders and something or not. And the suggestion that we have is that there should be an expedited permitting process for anything which is critical to a sustainable energy future. So it doesn't make sense to put back a coal mine and a, you know, sustainable energy naturally like lithium mine in the same category. You know, coal is not a future of what the end does. And by the way, you can extract lithium with almost no disturbance to the local environment, ugly, nasty mine situation. It sounds abstract things that are important for the environment and communities for sure. That seems logical. The reception has been positive so we'll see if something happens. Ready to go to financial details of it as we redesign supply chain. Let's go to the next question from Colin Langham from Wells Fargo. Colin, go ahead and unmute. Can you click unmute? You hear me now? Yeah, we can hear you. Okay, sorry about that. Any update on full self-driving? I think you had said a couple quarters ago it would be available by the end of the year. Is that still possible? Is it, would it still be like a level four or a level five that you're talking about? And are there any sort of regulatory hurdles you'd have to think about? As said earlier, we're expecting to release the full self-driving software to anyone who orders the package. It won't have regular approval at that time. You mean like level four or level five kind of traditional type? Like how many nines for liability do you need? You mentioned in the prior questions about IRA. I mean it sounded like you thought you could get, can you get all of it? I mean because my interpretation is like the production credits, battery component, credits for buyers seems very likely for you guys. Is the sourcing part of it possible? That seems like a pretty tough hurdle given how much has to be sourced from the US. That's looking very closely. As you mentioned, the sourcing threshold increases by the year. So we're looking at all options and also getting some clarification from Treasury. It's important to say that's only a fraction of the other credits. We do manufacture ourselves in the US. We manufacture the modules in the US. So that's pretty yes, we feel confident that as these incentives threshold sort of increases by the year. Go ahead and unmute yourself. Should we be thinking about this level spend on a go-forth basis? Leverage has improved quite a bit. It's the lowest this quarter. OpEx has a percentage of revenue. I mean our forecast says that it will keep reducing. I mean I think the way to think about it is, you know, our total amount of operating expenses will slowly take up as the company grows. It's very hard to keep it flat with the rapid growth of the company, but it's growing much slower. So some amount of growth there, but the top line of the business is growing so quickly. So I think there continues to be enormous opportunity to improve the overhead efficiency of the business. And we're seeing it. Yeah, that is so good. It's like engineers are not generic. It's just not true. What matters is where are the most brilliant people? Where are the two companies? We don't have to spend billions of dollars to invest in the future and invent the future. Engineers are also cost-conscious. So just burn the money after wind up and we're trying to figure out how to do that. One Nikola Tesla is frankly worth it. Your production has started to come off between 17% to 20%. Like last year, the cost of a container on the spot market in Shanghai got as high as $20,000. Now it's $35,000, $3600. So there's more deflation on a lot of commodities with a few exceptions. Does there's more deflation than publicly available information? Commodity increases were the highest in Q3 that we've seen over the last two years. And so when indexes change, it does take time before they float back. There's latency. At least of what we know so far, the peak on the commodity side in Q3, I say peak, hopefully it stays peak, hopefully it starts to come down. There is a small amount of reduction that we're seeing going into our Q4 cost structure from steel and aluminum primarily. But it's less than 10% of the total increases we've seen so far. So we're optimistic here based upon what we're seeing on the indexes for some of our cost structure that this will start to come in over time. But I just want to set expectations that there's not some windfall or fast reduction in this space coming in Q4, but maybe some as we go into next year. This is for Elon with your pending acquisition of twin benefit from operating under a single superstructure, if at all. There were still a few things to get right. Is it fair to say that now you are at scale and it's just a question of logistics to get bigger? So that's question number one and then question number two on the kind of like innovation and cost reduction and efficiency improvements, battery day to deliver all the potential you. It's years and some people think isn't enough but we're getting it done. It's a hard problem but we're solving it. And I think quarter six and it will be the most competitive after selling it well. And it's the whole system around it right? It's not necessarily a specific form factor. It's the attention to detail on how to break across six steps. And all the way through the cell. Yeah, exactly. We're making money where our maths are and all the various efforts that we discussed on battery day. Technical challenges and the ramp. No ramp is ever easy even at the end when you're 80% to the end. But we've made a lot of progress reducing technical risk in many areas. Cycle times of dramatically just walking the line here and was walking it yesterday that made some comments to me. You really see the acceleration around you. We've made a ton of simplifications moving from the Fremont factory to Texas and it's coming to play in speed of ramp here. Many here in Texas so it's location of both simplicity and scale. Elon, which is your expectation for the likelihood of commercial success in each of the three major AI endeavors, FSD and sort of as imagined. We're looking to talk to you in about three months from now. That's it everybody. That's the earnings call. We are complete. So to give you an idea of some of the things that we're talked about they did talk about the Cybertruck coming. I thought that was really exciting. They talked about semi trucks coming. The stock is down right now. $211 down 4.69%. I think this is going to be a buying opportunity. He did say that the company will be growing year over year 50% a year. I think that's extremely exciting for investors that they continue to grow year over year. And he said that they're going to be launching the Cybertrucks in 2023 and I think that's going to be a top seller. I know I want one. I think it's going to be about starting around 50,000 US in that area. I think it makes it affordable. So very excited about Tesla. Very excited about the Cybertruck. Very excited about this company. If you did miss the beginning they had a mixed earnings. Missed a little bit on revenues but beat a little bit on earnings. So kind of a mixed quarter but considering we're in a market meltdown and have been all year I thought that the results were good. So as a shareholder I'm excited and I will be buying more. If and when I buy more shares of Tesla I'll definitely let you know. Maybe I'll make a video on it. Stay tuned. I'm going to be doing a lot more of these earnings streams as we are in earnings season. I think it's extremely important to see how companies are performing during these tougher times. So if you guys ever have any questions please feel free to message me here on YouTube at Rich TV Live. You can also join our website at RichTV.io an ecosystem built by investors, foreign investors. If you're not winning you're probably not watching. Bring the winners bring the news, trending videos, trending news CEO interviews, growth companies and the biggest and best companies in the world. I'll also share with you guys my picks. All you got to do is join our website and ecosystem at RichTV.io What do you guys think about this news? We talked today about Tesla We heard Tesla earnings call. Left to know what you guys think about Tesla. Are you buying Tesla? Do you own Tesla? Do you own a Tesla vehicle? I own the stock. I'd like to get some more. Thank you guys for watching. If you're not winning you're probably not watching. It's your host with the most your boy Rich from RichTV and I'm out. Peace. Stock says thanks again for the stream and the helpful info. Hey my pleasure man. Anything I can do to help the people. Guys don't get down. Get even when the market's down. That's the best time to buy. When the market's up it's the best time to sell. In 2021 everything was overvalued. That was the time to sell. Screaming from the treetops. Take your profits. Buy the dips. Sell the rips. That's the rich system. 2022 when everything's down. This is the time to buy. I've been buying all year. Have not sold anything all year. When will we hit a top? Who knows but when we do I'll be selling. People ask me what should I be selling? I say sell your real estate in North America as we are coming from a top and I believe it's going to go down further. But when you're talking about stocks, you're talking about crypto, you're talking about NFTs metaverse. I think now's the time to buy the dips. We might see 10, 20% downside from here but I think the upside could be a multiple. 100%, 200%, 500%, 1000% returns are coming. The markets are setting up for it. You can look at all the charts. They all look like we're falling off a cliff in stocks and cryptos and NFTs and that's really the best time to buy for investors. So invest the best. The best is blessed and you deserve the best. It's your boy Rich. Rich. TV live and interactive and I'm out. Peace. Have a great day everybody.