During this call, we will discuss our business outlook and make forward-looking statements. There are, you know, we have millions of cars out there that, with a software update, become Full Self-Driving cars. can get version 14 if they just go and select, "I want the advanced software" in their car. If you're listening right now and you'd like to try it out, just go in settings and say, "I want the advanced software," and you will get version 14.
This greatly improves our ability to deploy Megapack because it's not dependent on building a substation of 335 kV for Megapack 4. We set new records not just for deliveries and deployments, but also around a range of financial metrics from total revenues, energy gross profit, energy margins, to fresh free cash flow. We feel that as people experience the supervised FSD at scale, the demand for our vehicles, like Elon said, would increase significantly. Now, covering a little bit on the financial side, automotive revenues increased 29% sequentially in line with the growth in deliveries.
The energy storage business continued to deliver with record deployments, gross profit, and margins. The other thing to keep in mind is we are seeing headwinds in this business given the increase in competition and tariffs. The largest increase included in restructuring and other related to certain actions undertaken to reduce cost and improve efficiency through convergence of our AI chip design efforts. Further, our employee-related spend is increasing, especially in R&D, as we have recently granted various performance-based equity awards to employees working on AI initiatives, and therefore such spend will continue to increase going forward.
| Metric | Period | Current guidance |
|---|---|---|
| CapEx | FY2025 | around $9 billion (projected to increase substantially in 2026 for the next growth phase and AI bets including Optimus) |
| Robotaxi safety drivers | next few months / end of 2025 | no safety drivers in at least parts of Austin; 8-10 metro areas by year-end (removing drivers, pending regulatory approvals (Nevada, Florida, Arizona)) |
| Vehicle production capacity | within ~24 months | annualized rate of 3 million units (expanding as fast as suppliers can keep up now that unsupervised autonomy has clarity) |
| Optimus V3 unveil | Q1 2026 | production-intent prototype to show off (million-unit line targeted for production start toward end of 2026) |
| Cybercab production start | Q2 2026 | start of production (single biggest production expansion; optimized for full autonomy) |
| Metric | YoY | Note |
|---|---|---|
| Automotive revenue | — | increased 29% sequentially, in line with the growth in deliveries driven by the new Model Y. |
| Automotive margin ex-credits | — | rose from 15% to 15.4% sequentially on improved material cost and better fixed-cost absorption from higher volumes. |
| Energy storage | — | record deployments, gross profit, and margins, aided by Mega Factory Shanghai ramp; but headwinds from rising competition and tariffs. |
| Free cash flow | — | approximately $4 billion, a record; total cash and investments over $41 billion. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Autonomy / Robotaxi | Austin launch, single market | two markets, Austin coverage 3x, safety-driver removal imminent | Expanding |
| Optimus | walking prototypes in Palo Alto offices | Optimus V3 unveil planned Q1 2026, million-unit line | Advancing to production |
| AI chip strategy | AI4 in vehicles and data centers | AI5 focus split across TSMC (Arizona) and Samsung (Texas), ~40x AI4 on some metrics | Accelerating |
| FSD software | prior versions | V14 shipped, huge performance jump, reasoning being added | Improving |
| CEO compensation / voting control | — | Nov 6 shareholder vote on compensation proposals and directors | Escalated |