Tesla Motors CEO Elon Musk revealed during the company’s third-quarter earnings call that the company’s owners will be able to download the software that enables the company’s self-driving capabilities by the end of this year.
According to Musk, the company’s self-driving system won’t be able to receive regulatory approval at the time. However, he noted that it will allow people to leave their homes and go to the grocery store without having to touch the steering wheel.
Despite this, Musk noted that the system will eventually be able to take people from their homes to the grocery store without having to exert any control over the steering wheel.
He said he drove himself to Tesla’s headquarters in Austin, Texas, from a friend’s house on Wednesday morning. He did this as he was on his way to participate in a Q&A call with reporters.
Tesla’s new truck, the Cybertruck, has been a big topic of interest for investors. Musk noted that the company is still on track to start production of the vehicle next year. However, he did not specify when the first units would be delivered. This suggests that some of these will trickle out before the end of the year, with the rest being delivered in 2024. This is consistent with our earlier report that the first units of the vehicle would be delivered in December of next year.
Tesla’s all-electric semi will be the first to be delivered to Pepsi Co., commencing on December 1. Production of the vehicles will then ramp up through 2023 and reach 50,000 units per year by 2024. During the Q3 call, Musk dismissed the conventional wisdom that electric vehicles need to be used to haul heavy loads. He noted that the company’s semi can travel up to 500 miles on a single charge.
According to Tesla, it has lined up the necessary materials and components to meet the strict requirements of the recently passed tax credit legislation. The $7500 tax credit for new vehicles includes a requirement for 50% of the parts used in the production of these cars and SUVs. This means that the company will have to source around 50% of the materials and components from North America.
During the company’s Q3 earnings call, Andrew Baglino, Tesla’s senior vice president for energy engineering, noted that the company is confident that it will be able to meet the requirements of the tax credit legislation.
During the call, Musk was asked if Tesla would be able to vertically integrate the mining of rare minerals for its lithium-ion batteries. He noted that the company would do whatever it takes to meet the requirements of the law.
Tesla reported a net income of $3.33 billion during the third quarter, while it generated revenue of $21.45 billion. Although Wall Street was expecting higher revenues, the company’s earnings per share were lower at around 99 cents.
Tesla is on track to achieve a 50% annual growth rate, according to Musk, who noted that the company’s rapid emergence and growth is due to the industry’s shift toward electric vehicles. He also said that the demand for the company’s products will continue to match supply over the long term. He predicted that Tesla will eventually surpass the market caps of Saudi Aramco and Apple.
On Wednesday, Apple was worth over $2.3 trillion, while Saudi Aramco was valued at around $7.862 trillion. Tesla’s market cap was around $685.8 billion, while General Motors was worth around $49.03 billion.
