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Tesla (TSLA) swung lower after the company reported record revenue and deliveries for its second quarter but also saw negative free cash flow for the first time in two years as $5.8B in capital expenditure spending factored in.
During the earnings conference call, Musk led off by talking about the strong uptake of FSD and long-term upside. He noted the “massive” capex year will pay off with “incredible” returns for investors. He said the goals for the robotaxi rollout are ambitious but warned of negative press if there are any crashes that cause injuries. "We'll continue to scale more than 10% per week in terms of miles driven," he noted.
Elon Musk also highlighted that Tesla (TSLA) has started volume production of its autonomous Cybercab, which will hit the market without a steering wheel or pedals, although the timing for deliveries is still unclear.
Optimus was also a major topic during the call, as Musk called it one of the company's largest projects ever, although he noted a substantial production scaling challenge since every part of the process is new. "We've had to build the supply chain out entirely. The Fremont production line looks incredible. Optimus will follow the s-curve of the manufacturing ramp, but the initial portion will be flat and long due to the newness of the parts in the robot," highlighted Musk.
Musk said a new Terafab site will be announced soon and discussed the Tesla Megapod business, which is a self-contained data center hardware system developed for heavy artificial intelligence computing. He described it as pairing the x86 computer with the Tesla AI4 computer in a box. "This allows us to scale AI compute with aggregated electricity production. We can place Megapods at Superchargers and have distributed AI," updated Musk.
Shares of Tesla (TSLA) showed a 4.7% decline to $355.16 halfway through the earnings call.
