What We Learned from Tesla's Q3 Earnings Call

By Kevin Armstrong
Tesla held their Q3 2022 earnings call on Wednesday
Tesla held their Q3 2022 earnings call on Wednesday
Tesla

Tesla has grown at an incredible rate, but according to Elon Musk, we haven't seen anything yet. So the company's CEO made the earnings call a can't miss event for investors and enthusiasts. The third quarter earnings call highlighted expected growth, buybacks and resumes. After the call, Musk tweeted: I will not let you down, no matter what It takes. Here is a quick recap of what we learned from the 58-minute call.

First, there are some quick points before we get into more detailed highlights. Musk says quarter-four is shaping up to be "epic" and promises a record-breaking performance. Tesla is not "recession-proof," but is resilient. Musk does not see any reason to slow down production, as demand is still far more than supply. RoboTaxi is progressing. The program would provide autonomous vehicles as cabs, but hinges on the full self-driving program.

Tesla Will Have the Largest Market Cap

In his opening remarks to investors, Musk made an extraordinary prediction. He said that Tesla would have the largest market cap in the world, surpassing second-place Saudi Aramco and first-place Apple. Not only would his company take the lead, "In fact, I see a potential path for Tesla to be worth more than Apple and Saudi Aramco combined."

The combined market cap of those two companies is more than 4.4 trillion. Tesla is worth just over $690 billion. Musk says it won't be easy, but "It will require a lot of work, some very creative new products, manage expansion and always - luck… We have an incredible product portfolio. I think we've got the most exciting product portfolio of any company on earth, some of which you've heard about, some of which you haven't." He later added that this prediction did not include Optimus coming to market. Tesla recently updated its humanoid robot to be put to work in Tesla factories before being available to the world in 2027.

Buybacks Could Happen in 2023

The topic of buybacks regularly surfaces during these earnings calls. Musk said that it has been discussed, "extensively at the Board level. The Board generally thinks that it makes sense to do a buyback." He added that the company would be looking at doing a buyback of $5 to $10 billion, and even if 2023 is a down year, "it's likely that we'll do some meaningful buyback."

Unfortunately, the buybacks won't happen before the 1% tax on buybacks kicks in on January 1, 2023. Some speculate this is the real reason the buybacks were pushed to next year, to avoid the optics of trying to dodge a new tax.

Tesla is Becoming the Go-To for the Brightest Minds

A.I. Day 2022 was a big hit, not only for showing off Optimus and Full Self-Driving improvements but generating interest in the company. While A.I. Day is viewed by many as a way for the company to show off its latest achievements, it's a recruitment drive.

Tesla includes several staff members to discuss projects, while Musk encourages people with interest to apply. "We've seen a massive influx of world-class artificial intelligence engineers and scientists resumes. So, it generated a tremendous amount of interest from some of the best AI researchers in the world. I can't emphasize the importance of this enough because I think finally it has become clear to the smartest AI technologists in the world that Tesla is among the very best."

50 Percent Annual Growth

Tesla is going to need all the help it can get. The company is still committed to growing by 50 percent yearly in both deliveries and revenue. "We expect to sell every car that we make for as far into the future as we can see. So, the factories are running at full speed, and we're delivering every car we make and keeping operating margins strong," said Musk.

Despite the company's strong growth, he admits Tesla is still tiny in the big picture: "We are still a very small percentage of the total vehicles on the road. Of the 2 billion cars and trucks on the road, we only have about 3.5 million. So, we've got a long way to go to even reach 1% of the global fleet."

That said, there has been a monumental shift to electric vehicles in the past year, prompting Musk to say, "I think the public, at large, realizes that everyone's 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 have to be in a very good spot."

That means there are two billion cars that could be retired in the coming years and replaced with electric vehicles. Therefore, the consumer pool will only get bigger and demand for EVs will continue to grow,

During its earnings call Tesla also discussed its upcoming Semi, which they expect to produce up to 50k units in 2024, the next Tesla model is already in the works, and the latest on its FSD Beta.

Spectacular Tesla Light Show Dazzles to the Tunes of Academy Award-Winning 'Naatu Naatu' [Video]

By Kevin Armstrong
Hundreds of Tesla cars synced to the Indian blockbuster film RRR's award-winning song 'Naatu Naatu'
Hundreds of Tesla cars synced to the Indian blockbuster film RRR's award-winning song 'Naatu Naatu'
Vamsi Koppuravuri/YouTube

Tesla owners recently came together in New Jersey for an incredible display of technology and art. Hundreds of Tesla cars synced to the Indian blockbuster film RRR's award-winning song "Naatu Naatu" to create an unforgettable light show. The energizing event showcased Tesla's upgraded light show feature, part of the Christmas update.

The Twitter account for the movie, @RRRMovie, posted a video, which can be viewed below, of the mesmerizing light show. Elon Musk responded with two heart emojis. After Tesla retweeted the unique video, @RRRMovie replied by expressing their love for Elon Musk. "Naatu Naatu," composed by M.M. Keeravani and Chandrabose, became the first-ever song from an Indian film to win the Academy Award for Best Original Song.

Try the Synced Light Show

A recent update allows owners to schedule their light shows up to 10 minutes in advance or even create multi-car orchestras by starting them simultaneously. This feature can be accessed by tapping the Application Launcher > Toybox. The update also allows Tesla owners to activate the light show using their smartphone app, making it more convenient and fun for those who use the feature as part of their exterior decorations.

The New Jersey event displayed the innovative capabilities of Tesla vehicles and highlighted the growing influence of Indian cinema worldwide. As more Tesla owners come together for events like this, we can expect to see even more mesmerizing light shows in the future, celebrating the convergence of technology and the arts.

Tesla continues to push the boundaries of what is possible with its electric vehicles. Features like the light show demonstrate that the company is committed to creating an experience beyond driving a car.

Some additional light shows are viewable below.

Defending Tesla's CEO Elon Musk: Senator Josh Hawley and Joe Rogan Respond to Critics

By Kevin Armstrong
Senator Josh Hawley defends Elon Musk
Senator Josh Hawley defends Elon Musk
Fox News

Prominent figures such as Senator Josh Hawley and media personality Joe Rogan have come to the defense of Tesla’s CEO, Elon Musk. Both spoke against the negative public perception and criticism while highlighting the importance of free speech. While Rogan spoke about the unfair treatment of Musk by members of the media, Hawley went after one — on his own show.

Senator Calls out Reporter

St. Louis’ KSDK News political editor Max Maxwell set up a recorded segment with the republican senator. While crews were getting the technical aspects sorted out, Hawley confronted Maxwell about his anti-Elon Musk tweets, which the Senator described as "vitriolic." The senator read one of Maxwell's tweets aloud, calling Musk's supporters "bootlickers." Hawley questioned Maxwell's intentions and expressed concern about the journalist's use of a public platform to attack people he disagreed with.

Maxwell explained that his tweet was a moment of frustration and defended his comments as satire, protected under the First Amendment. But it got more awkward as the reporter suggested he was drinking at the time of the tweets. Hawley emphasized that journalists like Maxwell have a lot of access, making their public comments particularly influential and potentially concerning.

Rogan to the Rescue

In another instance of public defense, popular podcaster Joe Rogan discussed the shifting public perception of Elon Musk on his show. According to Rogan, any narrative about Musk's political ideology is baseless. He questioned why people have gone from viewing Musk as a savior who brought about electric cars and reusable rockets to someone who is an "alt-right piece of shit." Rogan argued that the resistance against Musk and the publicity campaign against him have been fascinating to watch.

“The narrative has spread through progressive people where they'll just say it now,” Rogan continued. “It’s like they've reached the memo, the memo’s got to them… I hear people I know like, ‘Oh, Elon's just so crazy. Something happened to him. He went nuts, and he’s a right-winger now… They just have this narrative that reaches them as a signal. Like, ‘Elon bad now.’”

Senator Hawley and Joe Rogan's reactions to the criticism against Elon Musk and his supporters emphasize the importance of free speech and raise questions about the fairness of the media's treatment of the world's richest person. As public figures continue to engage in these discussions, it remains to be seen how perceptions of Musk will evolve in the future and how his tweets will impact Tesla.

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