FSD Beta numbers and everything else revealed at Tesla's Q2 earnings call

Tesla produces its 2 millionth vehicle at Fremont/Nevada

Tesla

Yesterday Tesla held its second quarter earnings call. Although Elon Musk has previously said he wouldn't be on earnings calls in the future, he did make this one.

As with previous earnings calls, plenty of data and statistics were revealed relating to production, future products, and FSD Beta.

Below is a recap of the entire event, including the Q&A session. The recap was originally posted to dburkland.com.

You can also listen to the earnings call below. The call begins at the 11 minute mark.

Opening remarks from Elon Musk

• Unique quarter for Tesla due to Shanghai shutdown
• Production records achieved in Fremont & Shanghai
• Set up nicely for record breaking 2nd half of 2022
• Past years have thrown several force majeure at Tesla yet the team continues to overcome
• Giga Berlin Production Ramp continues with 1000 cars / week in June, Giga Austin to follow with the same number in the next few months
• Still making cars w/ 2170 cells in parallel and important to note they aren’t dependent on 4680s and will still hit their production numbers 
• FSD Beta deployed to over 100,000 owners
• 5-6 years ago they set out to be the best manufacturer in the world
  • Pro-manufacturing mindset has given them a competitive edge
• Currently make the largest castings in the world
• As a result of improved manufacturing processes in Berlin & Texas, Tesla has reduced body welding robot count by 70% per unit of capacity
  • Body shop is roughly 3x smaller as it would be otherwise
  • New vehicle bodies are lighter, cheaper, and quieter thanks to reduction in NVH
  • Another level of simplicity and improvements are coming with Cybertruck (as well as future products coming down the road)
• Intelligent seat belt tensioning based on vision system recently released, first in the industry to do this
  • Can also adjust the airbag deployment as well
  • Delivered via OTA update
  • Will have profound impact on passenger safety
  • Compatible for all HW3-equipped Teslas
• Cybertruck
  • Production still expected to start middle of 2023
  • “Best product ever” -Elon
• FSD Beta
  • Planned to be released to all North American customers by end of 2022
  • FSD will then be released to other geos such as Asia and EU soon after pending regulatory approval

Opening remarks from Zach Kirkhorn

• Made substantial progress in almost every area of the business
• New production records reached in existing factories and new ones actively ramping
• Highest solar production volumes in years
• Temporary shutdown had noticeable impact to vehicle margin
  • Factory ramping also associated with negative impact on vehicle margin
• Inflation, commodities, and logistics continue to be headwinds
• Resource constrained on Powerwall and Megapack which should be resolved in the 2nd half of 2022
• Austin & Berlin operating costs are going down as production ramps up
• Tesla sold 75% of Bitcoin holdings 
  • They did so as they were uncertain when COVID lockdowns in China would end
  • As a result they wanted to maximize cash position
  • They are still interested in Bitcoin and have not yet sold any Dogecoin
• Highest operating margins ever at 14.6%
• Still targeting 50% of growth and still within reach

Q&A

• Chinese EV Manufacturers & Software Innovation
  • Elon believes Tesla China is the best EV manufacturer in China
  • Chinese car companies will be a force to be reckoned with going forward
  • Tesla has respect for Chinese automakers but believes they have whats necessary to compete
• Unified Vector Space
  • Unified Vector Space would be if instead of knitting together dynamic & static objects w/ C++ you knit them together at the NN level (meaning you no longer need to reconcile them in C++ heuristics)
  • Architecturally better way
  • Slight improvement in efficiency of FSD stack and something they want to get to
  • Nirvana situation would be to have surround video auto labeling for all static & dynamic objects as well as surround video inference w/ spacial memory
  • Elon believes they have a unified vector space by the end of 2022
  • Elon is also very confident that Tesla will improve the frame rate as they delete legacy NNs and further optimize the FSD software stack
  • The goal is to get FSD Beta to operate at 36fps for all 8 cameras compared to the current 24 frames which will reduce latency when reacting to a dynamic environment
• Inflation & Future Price Reductions
  • They do not control so therefore Elon says take w/ grain salt but thinks inflation to decrease by end of 2022
  • Carbon, steel, aluminum, etc are trending down in cost which should see impact later in 2022, early 2023
  • Processing of lithium is insanely costly
  • Elon again encouraging entrepreneurs to enter the lithium business as there are, “software margins”
  • “License to print money” -Elon
• Bitcoin
  • Cryptocurrency is not something Tesla thinks about a lot according to Elon
  • Main goal is production and addressing climate change by making sustainable energy & transport a reality
• 4680s
  • Structural pack is a monumental step forward from a physics perspective and is the way to go
  • Gained perspective through entering production w/ structural pack Teslas which proved their hypotheses
  • Cost improvements are thanks to solving technical issues and scale
  • They have saved 4-5kg in mass from the early cast Model Y underbodies since their initial production
  • Plan is to reduce mass of castings and to include more parts (and to adapt vehicle to work better with castings)
  • Cybertruck will be another big step in this area
  • Making progress on 4680 production ramp but continuing to leverage supplier cells (2170s) to ramp Giga Berlin & Texas
  • Total production ramp of 4680 packs to 1000 per week by end of the year (preferably earlier)
  • Q2 @ Kato fully automated powder conveyance for the dry anode electrode tool there unlocking major improvements in production & yields too
  • Production as a result has increased 35% MoM since March and yields throughout factory are already at targets or trending towards them
  • Took learnings from Fremont cell & pack lines and built optimized lines in Giga Berlin & Texas
  • Cell design was revved to unlock higher performance and manufacturing simplicity
  • Lines were fully integrated and insourced additional content
  • As a result new challenges for ramping in Giga Berlin & Texas
  • Last quarter cell equipment was fully installed at Giga Texas and they have since produced their first commissioning car sets of 4680s cells
  • The target for Texas is to begin mass producing 4680 cells in Q3 2022 with the goal of being able to exceed the weekly cell production capacity of the Kato battery plant by end of 2022
  • Priority with 4680s initially is simplicity and scale, Tesla was not aiming to include all of the bells & whistles right off the bat
  • As manufacturing goals are achieved they plan to layer in new material technologies into their structural packs (and increase range as well)
  • Currently in regards to 4680s Tesla’s main focus is to remove low hanging issues that would prevent further production ramp
  • Dry electrode anode & cathode are included in the current 4680 process which makes things harder to ramp (yet they continue to achieve success here)
  • Once mass production achieved they plan to quickly iterate w/ an increase in energy density and overall performance soon thereafter
  • Tesla cell production will continue to compliment production volumes from suppliers
  • Fundamental rate limiter for transition to sustainable energy is rate of li-ion battery pack production
    • Not due to scarcity of raw materials, refining lithium in ultra high purity is quite difficult and requires massive amounts of machinery
    • Super difficult to create anode and cathode
    • Elon believes 2/3 of batteries in the future will be iron phosphate, maybe some with manganese
    • Tesla is actively working with suppliers to ramp as quick as possible
  • Tesla is taking action by building their own Cathode plant at Giga Texas as well as taking the plunge into lithium refinement
• FSD Development Progress & Andrej Departure
  • While Andrej Karpathy will be missed (recent departure), Elon remains very bullish on current team of 120 people in software / AI group and believes that they will solve FSD by end of 2022
  • No major setbacks or delays in FSD timeline should occur as a result of Andrej’s departure
  • Elon believes they will raise FSD price just before they go to wide beta (targeted for end of 2022)
  • Value of FSD is extremely high and not well understood by most people, Elon thinks its ridiculously cheap if promises of performance materialize
• Semiconductor Supply Chain Constraints
  • Tesla procures about 1600 unique pieces of silicon from 43 different companies
  • Supply chains are more stable w/ latest generation of chips
  • Chips from the analog & mixed signaling space still remain a challenge from a supply chain perspective
  • Supply chain line of sight continues to match planned outputs for both factories (no constraints)
  • Long term contracts already in place for key battery materials and so there are no concerns about future constraints
  • Tesla does not plan to manufacture their own chips however they continue to work with suppliers to ensure future product goals are achieved
  • Chip shortage forced Teslas to delete redundant chips and update software accordingly (big positive in hindsight)
• Cybertruck
  • Deliveries to begin by the middle of 2023
• Vehicle Demand
  • Vehicle demand not an issue for Tesla for the foreseeable future
  • No sizable macro impact on demand
  • Difference between value in money and affordability and why you can’t just keep increasing prices
  • Elon feels that they have raised prices to “frankly embarrassing levels”
    • Supply chain and inflation are main culprits for price increases
    • Elon is hopeful Tesla can reduce prices soon
  • Elon thinks its achievable to produce 40,000 vehicles per week by end of 2022
    • Teslas has already produced 30,000 vehicles per week many times, 40,000 vehicles per week is definitely in reach
    • Plan is to get Giga Berlin & Texas to ramp to 5,000 vehicles per week by end of 2022 and 10,000 vehicles per week by end of 2023
  • Elon reaffirms that Tesla does not have a demand problem but instead a production problem
• Elon’s Role At Tesla
  • If there is only good news Elon won’t plan to join the future earnings calls
  • Elon is committed to working at Tesla as long as he can continue to help advance the company
• AI
  • Elon didn’t want to steal thunder from AI day so he will save the news / updates regarding Dojo & Optimus for then

You can follow Dan Burkland on Twitter at @DBurkland.

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Tesla Updates Hazard Lights Frequency To Improve Safety in Software Update

Tesla is implementing a new hazard light pattern that improves drivers' attention

Emergency Safety Solutions

Tesla is rolling out a significant safety enhancement through a software update. Teslas, already the safest vehicles on the planet, got a little safer thanks to a small company based in Texas. While this article will highlight the advancement in safety, it will also applaud the work of Emergency Safety Solutions, which dared to challenge the old way of doing things.

Overnight Evolution: The Game Changer

Tesla North America didn't mince words when they announced: "If an airbag is deployed, hazard lights will automatically activate & flash faster to improve visibility." Elon Musk added, "New Tesla safety feature uploaded via over-the-air software update. Your car just got better while you slept."

It got much better thanks to a partnership with Emergency Safety Solutions (ESS), which we spotlighted a year ago. The small company, now just five years old, used a Tesla Model 3 to display its advancements in the hazard lights system, which had remained unchanged for more than 70 years. After numerous studies, the company changed everything about the hazard lights and approached Tesla with its findings.

Chilling Frequency: Every seven minutes, a disabled vehicle is involved in a crash on American roads. The result? An alarming 15,000 injuries or fatalities annually.

Ancient Flaws: The primary culprit behind these startling figures is a hazard light system that hasn't been updated in over seven decades.

The Solution: A frequency shift by adjusting flash frequencies from the sluggish 1.5Hz system to between 4Hz and 6Hz immensely heightens driver alertness. Hertz is a unit of frequency, which equals the number of cycles per second. In this case, the frequency of flashing lights is increased from 1.5 flashes per second, up to 4 - 6 flashes per second.

Real-World Outcomes: When 5Hz flash frequency was tested, drivers reacted a crucial 12 seconds faster. Moreover, they recognized an issue of more than three football fields sooner than the 70-year version. The number of drivers shifting to the safer side of a disabled vehicle also shot up dramatically — from 30% to an impressive 87%.

Emergency Safety Solutions also posted on X: "Great step toward making our roads safer for people in disabled and vulnerable vehicles! We appreciate our partnership with Tesla and applaud this major milestone in our mission to protect drivers when they need it most."

Software Update

Tesla states in their post on X that this update is rolling out now in the U.S. to Model 3/Y vehicles and newer Model S and Xs.

It's not clear whether Tesla means this enhancement is available in update 2023.32, or whether it's in the upcoming 2023.38 update, which is currently in employee testing.

It's more likely that H.E.L.P. is implemented in update 2023.38, but we have yet to receive release notes for vehicles in the U.S., so we'll have to wait and see if this enhancement made it in.

More H.E.L.P. to Come

Keep an eye out for even more safety advancements courtesy of this partnership with ESS and Tesla. The company created the Hazard Enhanced Location Protocol or HELP. Beyond the lightning-fast flashes, HELP seamlessly integrates with in-car and phone navigation systems, giving drivers a heads-up about potential hazards before they become visible. It's like giving your Tesla a sixth sense.

Unfortunately, that will take longer as it would require more automakers to get on board with this new system. However, as we've realized, automakers are following Tesla's leadership on several fronts, and they may also increase road safety and implement the advanced system.

If an airbag is deployed, hazard lights will automatically activate & flash faster to improve visibility

Update now rolling out to all US Model 3 & Y as well as S & X (2020 & newer) pic.twitter.com/TadrwKTmtB

— Tesla North America (@tesla_na) October 3, 2023

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Video Reveals the Tesla Cybertruck's Unique User Interface [Video]

A closer look at the Cybertruck's UI

Vladvein/YouTube

It's not a good day to be named Max and work at Tesla or on the security team assigned to the Cybertruck. You can't help but wonder how a daring individual found himself in the driver's seat of this highly anticipated vehicle. This perpetrator spoke in Russian and joked that a bag in the truck belonged to Elon Musk before zooming in to a name tag reading "Max."

While we certainly don't condone breaking the law, we were provided with a risky reveal of the Cybertruck's interior courtesy of a mysterious and perhaps too-bold-for-his-own-good infiltrator.

Cyber-Theme UI

The video is less than a minute long but provides new information, notably on the updated user interface (UI). For weeks we've had Cybertruck sightings, but this is our best look at the Cybertruck's display.

Updated Icons and Font

The UI appears designed specifically for the Cybertruck; icons possess subtle sharp edges, mirroring Cybertruck's angular aesthetics. This design philosophy also extends to the unique font choice, giving the UI a rugged, distinct look.

Visualizations

A further advancement is the seamless transition between vehicle visualization and maps. The once-clear partition is a fading background, allowing for a more unified appearance. This unity is further emphasized with the vehicle now being depicted atop a 3D polygon terrain, which has been discovered before in firmware updates.

Icon Placement Changes

One of the first distinctions users would notice is the transition from horizontal app icons. This design has been the hallmark of previous Tesla models, to a vertical arrangement along the lefthand side of the screen.

The vehicle control icon is at the bottom, followed by climate controls and other apps. The gear indicator has evolved, too, switching from its usual horizontal layout to a vertical orientation in the screen's top left portion.

A closer look at the Cybertruck's UI

Vladvein/YouTube

The status icons, such as time, temperature, Tesla profile used to grace the top of the display, but they have now been realigned to the left side and can now be found directly above the vehicle visualization.

Cameras, Front Camera Confirmed

Another intriguing update revolves around the Camera app. Where previously users had to decipher camera views, they are now labeled for convenience, as showcased in the video with marked "Left" and "Front" camera views. Yes, there is a front camera view, finally answering the question of Tesla introducing the front bumper camera. We previously had a look at how we expect Tesla's updated Camera app to work with the front bumper camera.

Battery Icon

One of the standout features in the video is the battery display. Gone are the traditional battery icons. Instead, we are introduced to slanted lines, each symbolizing 10% of the battery charge. This visual representation is intuitive and integrates with the Cybertruck's angular design.

Music Mini Player?

Beneath the vehicle visualization is what appears to be a minuscule music control feature, though its precise functionality remains uncertain from the short video clip.

Inside the Cybertruck: More than Just a Fresh UI

Ambient Lighting: Drawing inspiration from the latest Model 3 Refresh and the Chinese Model Y, the Cybertruck incorporates a colorful ambient lighting strip. Strategically placed, this lighting adds a modern aura to the vehicle's groundbreaking design.

Interior Layout and Accessories: The video takes us on a mini-tour of the truck's interior, revealing several intriguing features:

Hexagonal Design Elements: Keeping in line with Cybertruck's geometric aesthetic, the backup camera icon flaunts a hexagonal design, intriguingly contrasting the octagonal design found on the cupholders.

Center Console: A spacious tray area reminiscent of the old Model S finds a home between the front seats. Decked with some wires and a yet-to-be-identified document, the console boasts "cyber cupholders" with an octagonal design. Furthermore, it's equipped with dual phone charging spots right in front of the cupholders.

Sun Visor: The video briefly showcases the two-stage sun visor, which resembles the one found in the Model X. The video provides a glimpse of the massive glass roof, promising a panoramic view that will undoubtedly make the interior feel even more expansive.

Rear Window View: A feature with many talking is the clear view through the back window. Although the video offers only a short glimpse, obstructed by tires placed in the truck's bed, it's evident that when the cover is open, drivers and passengers will benefit from an expansive, unobstructed view.

As one viewer pointed out, this video will probably be used for evidence one day. Whoever was in the Cybertruck owes Max an apology, and poor Max needs to remember to lock the door.

Video reveals the Cybertruck’s UI

- apps are along the left side
- status bar icons like time and temp are above the vehicle visualization
- smaller nav search icon
- gradient between the visualizations and map

pic.twitter.com/yRtSmFuwKB

— Not a Tesla App (@NotATeslaApp) October 2, 2023

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