Elon Musk

“There's far more power available from the sun than anything else by far.”

“And the human hand is an incredible, incredible thing.”

“But I think probably this is the fastest industrial scale-up since World War II in America.”

“But if we injure even one person, it will be worldwide headline news.”

“I don't think such a building exists anywhere on earth.”

“In fact, I mean, probably the best way to scale total energy production in the United States is simply using batteries because there's, I think, around 1.2 or 1.3 terawatts of power production in the U.S., but the average power usage is only 0.5 terawatt.”

“So, let's see, Optimus, as you've heard me say before, I think Optimus will be the biggest product ever, but it is a very complex problem to solve.”

“So you can have a very fast iterative cycle and try out new chip designs very quickly and see if they work.”

“Optimus has a lot of really specialized power electronics and circuit boards.”

“I've actually my -- what I've asked the team to do is like really, we should be spending on CapEx as fast as we can spend -- as fast as we can without it being too wasteful.”

“I mean it's quite stunning to see.”

“And I'd like to thank them for their support and their investment and their hard work.”

“So we've had to build up the supply chain in its entirety or in-house the production.”

“For Optimus 4, which will be built in Austin, that will be a much more vertically integrated supply system for Optimus 4.”

“We've placed equipment orders for our development fab in Austin.”

“So you've probably seen lots of impressive demonstrations of robots on the Internet, but those demonstrations you're seeing are preprogrammed or remote controlled.”

“And Digital Optimus will be important, obviously, for physical optimus because physical optimus needs to be able to operate computers.”

“That's really, of course, how all of the Starlink satellites are powered with solar panels and batteries.”

“Since the units -- the total number of units of the Tesla Semi is still low and will continue to be a very small percentage even by the end of this year of our total vehicle fleet, it makes sense for us to focus our efforts, our self-driving efforts on our high-volume vehicles.”

“This is going to be the hardest product to scale manufacturing that we've ever made at Tesla because everything on the robot is new.”

“And as we get approval for FSD in different part -- different countries, I think we'll see a similar uptick in demand.”

“So you've got 2.5x as much power generation as the average usage.”

“It's one of the hardest things to solve to make an autonomous humanoid robot that can do tasks that if you simply ask it to do something or show a video, it can do the task without any programming.”

“We expect to be vertically integrated with robotaxi as we are in the rest of our business.”

“So it's a lot of work to scale -- to get the design right and to scale production.”

“But I know when I want to drive to work with the first 10, 15 minutes, I can't actually do any calls because the cellular connectivity is so bad.”

“That means you could potentially double the energy output in the United States just with batteries.”

“I think it's -- I think it's going to be the best edge computing chip in the world.”

“Model Y, I believe it is now, I think it's the best-selling car of any kind in the world and is setting records across the board.”

“And I really want to emphasize here that the production scaling challenge is very substantial.”

“You will have human and then super human dexterity.”

“And you really need fast-acting advanced power electronics to be able to smooth out these massive -- massive changes in power, especially during the training runs.”

“So we feel confident we can adapt the same Tesla AI technology that we developed for self-driving cars to have a self-driving computer screen, self-driving computer essentially.”

“So this is a massive CapEx year, but I'm confident that all the things that we're investing in are -- will yield incredible returns, really the best CapEx returns that we've ever seen.”

“And we're also preparing to do a massive solar panel like solar cells and panel production.”

“So, overall, I'm pretty happy with how things are going.”

“So that's why SpaceX has bought so many megapacks for the data centers.”

“So if we can be -- it's okay to be a little less capital efficient if we get things done sooner because that's actually going to be the higher NPV outcome for the company.”

“Ideally, you want 99.999% reliable.”

“We started production with the lithium refinery, the cathode refinery.”

“So, with robotaxi, our goals are very ambitious for robotaxi, but we do need to be cautious about causing any accidents or causing any harm to anyone.”

“I mean we're doing an incredible amount of construction and production growth in so many different arenas simultaneously.”

“And in fact, I think, for a lot of people, they're actually buying Tesla full self-driving with a car attached as opposed to a car with FSD.”

“SpaceX is sort of the big model that is kind of like the manager of Digital Optimus and kind of tells Digital Optimus what to do, provides it with a series of tasks and then digital Optimus goes and does those tasks.”

“So we expect to do -- get self-driving working on the Tesla Semi probably around the end of this year or early next year.”

“So we're working on what we believe is the most ambitious build-out of advanced infrastructure manufacturing capacity ever in history.”

“Samsung and TSMC, in particular, are building fabs at TSMC in Arizona and Samsung in Texas and putting in tens of billions of dollars for -- to build AI compute for Optimus and robotaxi.”

“So this is -- the economics will be so compelling that I think we will really have a lot more desire to use the service then like I think demand will outstrip our ability to service the demand.”

“So, for the car, it's sort of pixels in or photons in and controls out.”

“And we're seeing in locations that have FSD approved, we're seeing a very high take rate of FSD.”

“And that development fab, I think, is pretty cool because it's intended to have lithography mask production and then logic, memory and packaging and chip testing all under one roof.”

“So its popularity is increasing tremendously.”

“The more you study the human hand, the more amazing you realize how amazing hands are.”

“The energy business is also growing incredibly fast, and I think it will be crucial for the scale-up of artificial intelligence, data centers.”

“So Starlink with its ability to do connectivity anywhere is actually quite important.”

“So Tesla chip team is really doing great work and making incredibly fast progress on AI.”

“We're investing a lot in growing the core business and really preparing for the future.”

“They're going to make some very tough decisions on memory allocation, and we really appreciate Micron making room for Tesla in the years to come and giving us actually a very significant allocation on reasonable terms given the pretty insane pricing of memory these days.”

“I don't think there's ever been a company that's done this at the scale.”

“One of the things for Cybercab should be noted is because it is a new vehicle chassis, we need to accumulate driving data that is specific to the Cybercab before we can put a lot of them on the road.”

“Optimus will follow the sort of normal S-curve of a manufacturing ramp, but the initial portion of the S-curve will be quite flat and long because of the newness of the parts and the robot.”

“We have started production with the Tesla semi-truck.”

“So an autonomous Semi is actually going to be very important to address the shortage of truck drivers.”

“So, yes, it's been a great quarter.”

“And with Starlink, you can watch 4K live sports in the car and with very low cost per gigabyte of data that's really not feasible via the cellular system.”

“Actually, this is going all the way from silicon refinement to producing the solar cell and then deployment of solar because there's going to be tremendous need for electricity in the future due to electrification of transport and AI, obviously.”

“So there is no humanoid robot that is actually able to do generalized tasks.”

“So -- and you can just think of us like a giant satellite.”

“I mean the nuances of how human hands work are amazing as the closer you look, the more amazed you are.”

“But I do think Terafab is going to be an amazing initiative and a necessary one and one without which we will be constrained in our ability to scale Optimus production because we simply won't have enough AI chips.”

“Optimus will be the first one that is capable of doing that, where it's not just a demo, it's genuinely useful in day-to-day life.”

“But with Optimus, there is no supply chain.”

“It's all Tesla design, design stuff, but it is fabricated by suppliers.”

“So I don't think we're going to have any demand challenges with robotaxi.”

“I think we've got something like 7 gigawatts of power at our superchargers and growing.”