Talk to text
Below is a talk to text transcript from the Tesla earnings call which occurred today 4/20/2022. Obviously there are many errors as I just streamed the audio into my iPhone notes app using talk to text. Enjoy the weird translation!
As Berlin started production in Lake March and Austin and early April these costs will be an automotive cons going forward to give these factors are now producing customer sellable cars are free cash flows ever made quite strong yeah we’re impacted by working capital related to lower them planned production additionally we have reduced our debt excluding product financing to nearly 0 looking ahead in the media term a few things to keep in mind for Q2 first we’ve lost aboutAs Berlin started production in Lake March and Austin and early April these costs will be an automotive cons going forward to give these factors are now producing customer sellable cars are free cash flows ever made quite strong yeah we’re impacted by working capital related to lower them planned production additionally we have reduced our debt excluding product financing to nearly 0 looking ahead in the media term a few things to keep in mind for Q2 first we’ve lost about a month of the volume of a factory in Shanghai due to Covid related shut downs production is resuming at limited levels and we working to get back to full production as quickly as possible this will impact total bill and delivery volume in Q2 second as if mentioned before Austin and Berliner just starting the Rams in the stars in efficiencies will start to fall through are gross margins computerthird we do have higher ESP‘s in attacked which will help to offset some of the side wins we continue to drive towards further strengthening of our financials in the second half of the year and believe are 50% or above growth rate remains achievable for the year I want to consulta stinkng Tesla team our suppliers and our Newcastle
HowRecord Quran on many levels I wake Richmond Heights deliveries a profit in and I’ll bring much is 19% this was despite chip shortages mail just six challenges and an overall difficult quarter like to congratulate the potential team on shipping record possibility and target and Albert despite Manny Manny difficult to headwinds especially the Teslato the train a team and I Shanghai factory babe they really had a significant changes due to the Covid shut down and unless been able to talk with Trash the roof of high-quality vehicles and we already back up and running with it at the factory so has a Zack said though we’re conflict of ascentgrowth and pick up ruction versus 21 I think we actually have a reasonable shot at a 60% increase over last year so that’s it yeah production that’s cool now with the giga bullet and giga Texas past few months so we to fantastic factories were great teams and they are ramping rapidly with with new factories that little room always looks small but it grows exponentially soI could have very high confidence in the teams of both factories and we expect to rent those initially slowly but I’d like to growing exponentially with the machine high-volume by the end of this year so too we’re also working on in your vehicle but I want to two at the kicker Texas opening which is a dedicated Robo taxi that’s a Holly optimized for autonomy mean it would not have steering wheel or pedalsand a number of other innovations of around it that I think are quite exciting Atlee optimized for ages 20 to be the lowest I fully considered cost per mile a customer kilometer a county everything and and so it’s only gonna be very powerful product with where we aspire to Rich Croy production off of that in 2024 so like thatand that really will be a massive driver of Tesla so gross and we were being on track to reach by production of the cyber truck picture of Service but once again I’d like to think that the test employees with your hard work but also liked her to think our suppliers I’ve really got the extra mileand they were going amazing spider group I am done it would say Hartville thanks to the spires later but it really worked a night that tells able to keep the fat chris Reinerd and we were really early stage about Dre we are only cost 1 million units in the in the past 12 months so I recently and we are respire to head to 20 milliunits here so we’re Besty 5% long away for towards Argo andwe’re very rapidly a year of your mound remain coconut of exceeding 50% annual growth for possible future Ford escape to the next year serene and the Nazareth course Optimus which I was surprised that people did not realize the magnitude of the oculus Raval program the importance of Optimus become parents in the coming years those who are insightful listen carefullywill understand that Optimus ultimately will be worth more than the car business with more than half the state that’s my family so doing well with respect to address the part shortages that limited our progress with batteries and solar so expect batteries and talk to Tulsa grow well this year and basically future is very exciting I’ve never been more optimistic or excited about the tripto Tesla Twitter that I am right now thank you thank you very much let’s go to first investor potion Ivan has his Storico provided FSB timelines we’re not optimal accuracy optimism for 2022 released but is there anything at this like and share with investors to help them make their own conclusions in progress being made interventions for mile driven or any other theater sure I’ll call it with respect to. Drivingof any technology development of open Bolton I never really seen more kind of false dawns or where it seems like we’re going to break through but but we don’t as I’ve seen in. Driving and ultimately what it comes down to is that too so forth of driving you actually have to solve real-world artificial intelligence which is sortof the whole route system is made for Phila Co nets and cats and eyes and so actually really think about it in order to solve it also driving we have to solve gillnets and I’m cameras to agree to keep Corey that is on par with I go to exceeds humans and dadI think we will achieve that this year the best way to reach your own assessment is to join the Tesla. Probably better program but we have over 100,000 people right now in rolled in a program and respect Broadnet significant way was here so that’s that’s my recommendation is it has join the program and experience it for sale in take note of the rate of improvement with every release and Rick put out a new release roughly every two weeks so it down or you’ll see a little bit of 2/3 forward one step back but overallimprovement is incredibly quick serve as mayor creation for reaching your assessment is today’s little train thank you and the second question is how much of an impact Wilton a production shut down in Shanghai have an Q2 what is the timeline for localizing tomorrow three in Europe or and will never be neutered or Wilbur models be prioritized in Berlin bbe here we did lose a lot of support days of production and anchors there are fires also lost I made is reduction Tesla Shanghai Shanghai is coming back with a vengeance so I am I think it was any new or shoes that are raised I think we will see record output per week from Ciara Shanghai at this quarter I’ll be at we are missing a couple weeks sothat means that most likely pick a production to Q2 will be similar to Q1 maybe slightly lower all rabbit on the head in and be slightly higher credit to be “roughly in Park but then thanks to 3Q for be substantially higher so it seems likely that will be able to produce over 1 1/2 million course this year just made it that’s my best guess iin the model three support for new factories to be focused on and have the least amount of complexity and variation which is why cable and Google Texas are focused on the bottle wine it’s is it from the point which you have a factory complete and you and Andrew making a small number of units to the point where it’s at rproducing vehicles in volume is took 9 to 12 months from start of production so hopefully were before we’re getting better at that rhyme so maybe it’s a little less route to get to serve the 5000 a week level is typically taken us around 12 months from star productionthank you the next question is how much raw material exposure do you have measured roughly percentage of percentage of cost of Catawba example in a given quarter versus 1 to 2 years out both direct and indirect separately how do you think about price increases versus prioritizing higher mix vehicles going forward oon the price increase production mention it give me seem like like maybe we’re being unreasonable about increasing the prices of our vehicles given that we had record categories quarter but the waitlist for our vehicles quite long and some of the vehicles that people order is it to next year so I’ll prices of vehicles order it now I really anticipating back to our supplier and logistics cost price Dr. Edward that we both were wearable believe will happen over the next 112 months so that’s why we have the price increases the way to the car order today would work all right it’s OK so shut your mouth a long wait list and call it where I was sitting out amount limited wheel trucks loaded by very much appreciated exposure yeah I just had Giovanni Lana saying I’m here at this there’s different ways to calculate Ontario exposure I don’t thinka simple way we asked me where around 10 to 15% of our cost structure exposed to roll materials and just to clarify a couple of things on that so we’ve been experiencing increases in cost in general but also route materials for a number of quarters now that piece picked up into 21 to last quarter and what we’re seeing for choo-choo it’s slightly higher than that as well and you know as indices move it doesn’t impact us immediately or directly in some cases we have contracts with suppliers but then is this contract expire we have to renegotiate them so that they can be a lag in some cases are contracted you directly reflect movement in commodity prices around material prices but in a day
Call of Ryders so we have to find it a state by state basis and dad yeah sure on the 800 V thing yeah so it’s it’s really a case by case thing for the small platform vehicles and three and why there’s another someone’s losses with 800 V not everything is is better on until we look at that by forming not like ignoring the reality that you can go to our voltage but it there’s not nothing really encouraging us to do so I’m not platform it’s really about Martin power and look at bigger vehicles there there are some advantages on those bigger vehicles go for 4 to 800 V might save 100 bucks if it’s not really moving and you’re changing many things Yasmin charging infrastructure all the way through the entire vehicle system yes to get maybe $100 yes exactly so I’m in the US Route 110 V preparatory oxygen and then most possible 20 ends in appliance at work as well as so awesome advantages or are or small is the time in long-term care schnauzer probably but it really needs very big vehicle volume to pay for all the cost of changing for 400 to 800 V and then 100. You have to get through the fall to the end to see that maybe it’s in with all the way to 50 year or last year on on bigger vehicles where you’re talking about higher power on the charging side or higher power from the battery to the electronics or you need more torque the current requirements go up there’s a little bit more semiconductor in and actually you know conductor savings are going to the hair voltage and enter week we do consider that her Semien temperature but for the Thruway platform where I’ve got everything running and benefit is question voicemail basically zero for a taxi here for a taxi cell that says hi that’s good next question next question is how are the current 4680s performing versus expectation said during the battery day in terms of expected range increase in dollars per kilowatt hour yeah yeah we’re all working in all the areas we shared on battery day and we have sort of consistent progress across all those areas towards achieving the five-year contradictory goals for the Cazador control but we do not control of commodity caso you know that that’s that’s call out tomorrow MO3 it will take us several years ago right meals to the point where everything that we discussed as it is achieved authority was on some pussy and scale during our initial 4680 in Trussville battery Ramson as retainer manufacturing goals of the Laron immaterial technologies a bit we are developing in hiring structural pack revisions in a nutshell sure I think vice versa 4680+ stressful pack will be competitive with the best alternatives later this year and what we think will exceed the best alternative next year yeah we have some good existent proves right like with Bill facility here in Texas like we know how much we spent on capital facility and it’s been a more than 5X worse than prior technology insulation so we’re saving huge on Catholics are on utilities in and personal we we we know what those loads are and how many people are needed to run a highly advise Patrick and we have massive reductions in both of those so like the cost model is people understood it’s really about rate annealed which will come in time as Ivan said over the course of this year next year thank you next question is how does this apply to secure raw materials required to scale to extreme size yeah so assuming we think that quit line for 510 $20,000,000.25 1021 vehicle levels are you real East have to analyze the sword macroeconomic what is the tonnage Spotify being that you need of nickel of Air Force Base graphite separators electrolytes I look like electric macro tonnage is a cool because you’re just living factors for accelerating yeah picture of a sustainable energy future I’m in and whatever those living factors are so right now we think mining in finding a lithium is Dr is it quite a bit, screws go to notes sells it’s going to Saint single biggest right now toy notice him and let them out and sell it because maybe around two or 3% of the cell phone cases apart yes please call Aunt (amy) on cell but my father do you like the most expensive and her and heavier side of the salsa Catherine so dusty the Nickelodeon and Prospect so empty out all the arrow trails how we can accelerate the total amount from Charles needed to transition the world to sustainability of time of the school to really go through all those details but we are thinking about these things and we think we’ll have some exciting as person that was cool yeah one thing I want to call Adams like we’re also committed to recycling at all of our sell factories were recycling 50 tons a week right now in Reno and traffic to 150 with all of that reclaimed material going directly back into our cabinet supply chain so we’re looking at the beginning and end of life needs here yeah since we were factories for vehicles for gamble giga Texas here we are today its non-yogurt or scrap aluminum foil stamping shop directly in the shop regrind and plastic videos out concerned about Mike Meininger be consuming them but when we get them in the door he’s gonna hundred percent of them boy or a story built versus board for the model Y that we built here in Texas has both the front and a rear but everybody casting so of course the casting almost 2/3 of the body and then that’s castle and it’s OK we can take both the scrap from the casting machine eating it comes out and I put that but just melting saying also take any stamping and any other little to grab and also threatened. That we can use 11 wheels from practically any car we’re going to be recycling the dilemma cast of the wheels from legacy gasoline cars as well and throwing that in the melting pot for our living room Caspari iPhone or wine and dumb poopy poopy moving to Springer your body in an oh well thank you at what rate do you expect Berlin and Austin to rent correlative to Shanghai are you able to leverage learnings for Shanghai or are the processes substantially different in the new factories brown production Shanghai because we have lunch lunch and we’ve now been through the basis veteran teams that I’ve seen a three wire rim of the wire up specially locations and we’re of the shirt sharing what we’ve learned and so it yeah we don’t get complacent or title with this should be a fast around because we have a lot more and we’ve done a lot to simplify the fraction process of model one that should lead us to a fast run with that and in Texas in volleyball constructural cussing through so much Robux would expect almost double the capacity for body for example precinct reducing the number of areas yeah right at the property line or for the structural pack if your social packed end right front and rear castings at the parish office is 5/60% relative to pick me up a car tech center to go somewhere else because yeah that’s true battery the floors battery on the battery in a new contact in the car so sexually content 50% less station to cheer yeah I think I think about this when we go to pick the car is if you’re waiting for the best Tesla in the waiting forever forever because I’ve read new factories better than the last one yeah thank U next specialist Merodio Ivan mentioned that futuristic driverless Lubbock Robert taxi vehicle is on the road map when can we expect more details on the product offering to be unveiled is this something that people can own or will this be only offered by the slice of service so I think hold of one we would want to jump the gun on an exciting partner it’s been too much so into it with do a product event for up a taxi next year and it gets 42 agreed we are aiming for by production in 2024 all right and maybe the last question from investors is what is the current run rate of 4680 cell production at Fremont and a giga Texas what do you expect one rates of 4680 to be in frame on the cake a Texas for Berlin at the end of the year will be Berlin is Curtis using Bird to 2170 nonstructural pack or not constrained by 4680 they will transition to 4680 hopefully later this year but can’t believe processor or pilot Wilson have just as rustication 2179 structural pack capabilities are in. Carrot cake a Texas as well but to plan we won’t be in by production with 4680 sometime pepsin was in the third quarter and Sabrina fourth quarter with a China Covid shut down in the semi Cracker Barrel in Oxford Hard through key foreign and some little bit and Caitlyn we have sizable celebratory at the moment and accessories to support the 2022 volume target to describe so that gives us a building 33 delivered in the 4680 ramp where we can maximize learning step-by-step take engineering downtime to upgrade to modify the special Pakistan super reliability all well yeah 4680 is not a risk to achieving wouldn’t have William pickles produce this year but it would become a risk next year if we do not saw point fraction get here by early 2023 but we’re had a company thank you very much let’s go to Emily‘s questions now the first question comes from Dan Levi from Sia Sophie please go ahead and unmute yourself I get good evening thank you for taking crushers maybe you can just talk through our address what some of the drivers of cost improvement were in in in a quarter was it just further improve Vince within Shanghai in Fremont or anything around sort of ongoing kaizen that you’ve talked about in the past and we just talk through what you’ve been through from the first quarter sure I mean it at a high-level our cars produced in Shanghai to carry a lower cost structure than cars produced in Fremont and so has arm or Nixa cars shift toward Shanghai the average cost is positively impacted by that we’re also seeing some progress in manufacturing efficiencies in Fremont particularly on the ass an Exide as volume increases improve Sarah expedites has been a huge story for the company Q4 we had massive mountain x-rays Caitlyn was still quite large but we did make progress I’m bringing that down son could curse to the actual team and an associates there because we’re cheering record Fremont Fremont team is doing a tremendous job yeah yeah but it’s hard to hundred under weight like you should the expedite situation with the crazy logistics that occurred with Covid and unity lines pointing at the FEMA team and also the Shanghai team has been extremely dynamic with the unpredictable nature of our part arrivals and our supply chain team in particular production planning portion of supply chain supply chain for a little notice when those parts shortage is coming and it’s kind of a scramble couple days before the part is supposed to run to figure out how to get it here in certain amount of Herculean effort that goes into produce a quarter like Q1 even the quarters before that absolutely meds there were some inherent cost improvements as I mentioned but you know there’s also offsets that we talked about previously in Rock materials commodities up on logistics continues to remain a challenge efforts to increase capacity there and bring those cost down reindeer Philip yes thank you on second question you know what one of the initial goals of model three way back when was to have an EV that was affordable for a while portional market and we know prices are much higher now just give us a Pike in strands processor or higher for for all of the old makers we know that there’s inflation that you’re battling through some of that needs to be passed through today its press the vehicle him and you’re gonna be supplied future so sorry the new point but given that the goal long term of making it is more widely available to the masses overtime how do you look at the progression of prices over time but we absolutely want to make him if he’s a portable spa in very difficult with the oven inflation is that like a 4050 year high and I think the official numbers actually understand the true meaning to inflation so and that information appears to be like you continue for at least the remainder of this year when we go notorious players it’s wires under under severe cause pressure so yeah that’s OK sourcing suppliers request to 2320 to 30% of cost at Bradley increases for parts from last year to end of this year so it’s just there’s lotta cost pressure there is no prices because we would win Quetion if you know tonight then and we’re got orders that go out or you were more in some cases than those cases but I think especially with the Robert taxi and autonomy I think will end up providing consumers with my for the lowest cost per mile of transport that they’ve ever experienced with Rotax like baby 5 to 10 times for a customer mile it’s really quite substantial yeah I mean it will get some of the projections it would appear that wrote the taxi ride ticket ticket subsidized subway ticket thank you very much was go to the next question from Rod latch for Wolfrey search hi everybody I am trying to just parse out your comments about the inflation in screen supply and battery feedstocks and in the initiatives that you are working on internally to secure these materials it sounds like you’re optimistic about Tesla‘s ability to solve this for Tesla do use but do you see this as it is a constraint on easy adoption more broadly yeah absolutely what what’s the keeping our crosstown auto is that we have long-term contracts with suppliers but those long-term contracts will have to run out and then yeah say with the rappers looking at the world as a whole thing OK what does it take for earth to transition to sustainable energy faster it’s only at the farm and living factor is the output of cell at what rate can look him on cells increase “I was career that is the fundamental limiting factor so move as fast as the slowest West lucky elements of the whole supply chain currently we see that as being at the challenge with lithium and it’s not that there’s a shortage of lithium or in the world famous present or post everywhere it’s a very common element however you just want me to take it take up the floor lunch me and order that book of the clay I went with a lithium and and then you need to go through a whole series of refinement steps and equipment is needed to go to refine Lattimore to lithium that can be used as lithium hydroxide looking carbonate in Apple battery song so we think we’re gonna need to help the industry on this front inner encourage entrepreneurs out there looking for opportunities to go to Las Cruces lithium margins right now are practically software modules mean but I think I’m done is that correct me if I’m wrong but I think the price is 10 times higher than the cost of extraction so not like we’re talking 90% margin‘s here dear do you like minting money for you interesting so I guess we’ll we’ll stay tune to see what what what happens from that my second question is Some it’s impressive to see is the modest increase in cost per vehicle cost to get sold per vehicle given what we’ve seen in terms of commodities actually and from here you have a lot of savings opportunities with 4680 cells and the cell manufacturing changes the anode chemistry structural packs giga castings are you suggesting that even those may not be sufficient to offset the inflation that you’re seeing in and that you’re going to need the additional pricing as well in addition to those specific initiatives that you’ve called out to increase the pricing brother the car pricing is anticipating what do you think is the probable growth in and costs and if it was gross the closing cost is not materialize we actually may slightly reduce prices so sweet currently anticipate making your significant price increases governs keep printing press months of money and Iran and then and if there’s not they’re not significant increase in lithium extraction and refinement and then brother materials meeting for a limited amount of materials that will try prices to two high-level‘s so we’ll just gonna leave it in the car prices are what will be the car prices are for a vehicle delivered in the future like 6 to 12 months from now so this is our best guess but I think if you zoom out really how do you say our mission at six we are working with her existing suppliers and others to figure out how to grow all these rock materials as quickly as possible tonight slow down the transition yeah and you know whether that means we have to get directly involved in some cases are not comes down to the counter party and their willingness to expand at three we think they should be able to expand and dad and everything else we built a giga factory in Reno because it needs to be done yeah and so like what we will do what needs to be done to not slow down the transition and affordability is a cool portable it’s going to retard figure out what is inherently good thing that we can’t have that thank you the next question comes from Peterborough glue from you speak research thanks can you help can you hear me well yeah Craig I’d like to ask you some questions about the free cash flow do you mean first millions are all grown 11‘s and you’re gross you’re gross motor and your gross ambitions I did the most frequently can I see you guys sitting on the 4 million500 billion $ of cash at the end of the decade and and I was wondering if you know you have given some thought to that emoji Lancaster you know information keeps going crazy popular billion dollars might be like Keynote $20 billion today I don’t know what flavor bouillon dollars by zero might be a little less so I don’t know if I’ll ever seems like a lot of cash I don’t know choo-choo I’ll try to do something useful with it we have to take this one step at a time and so you know we have an investment that are happening right now to get Austin in Berlin up and running and then his Elon mentioned installing capacity for a Rello taxi production and you know there’s some decisions that is healing a little too just enough to share in the future about what the economic models like pussy economic model looks like forever taxing and so you’re at the Waylon and I have discussed Leslie let’s kiss me if you’re yes and so are focuses in it to get to the point where ever taxes are on the road after messengers get the economic model for that dialed in and then evaluate you know the size of cash flow Centerpoint and make decisions Dans Dad as to what’s next . Do you have a follow-up question yes I think it it it all right let’s go to the next one the next question comes from Chip Chowdhury from global equity research Inc. you two questions I have a question regarding the cyber truck I was wondering Leica in terms of the number of parts how would cyber truck compare with the traditional pick up truck in terms of number of parts the second question I have is on Gigafactory Nevada sparks will be have any production of vehicles in that factory or all the future production will happen and giga Austin thank you Donna comparison of truck parts versus regular truck parts are in Larisa heart cells in your Instagram account that likes it was supposed to be in our structures is significant verse is Richard national theater pick up truck or any other vehicle let you know because we talked about her take a castings we save hundreds of having to try to repair the house of the car is it 1+11 Castaneda still with the cyber truck and the doors for example we have an exoskeleton designer the doors ready take me to TikTok impact what really has like we don’t have a door reinforcements we don’t have the mayors so I haven’t counted them because I don’t have to look back at Apple technologies to decide how I’m doing and check that once in a while but in general architecture is always moving to reduce complexity reduce parts and I would say ignoring the battery cells were probably 20 to 30% less OK thank you know to expect expect expect to expand cake Nevada burst as large room for prevention her and then we do expect to increase after food for Nevada by far the biggest increasing P from Katy Texas thank you very much the next question comes from Alex Potter from piper Sandler Alex can hear us yes hi Martin can you re-yeah OK great I am so first question I had was the extent push other plants outside of China are insulated from any further may have in China BC if this Covid lockdown thing gets out of hand clearly that’s going to continue impacting Shanghai but is there a point at which it could actually also impact other facilities yeah Prkwood continue in some parts that are supposed to Trinidad apply worldwide and that would be if they would’ve packed up all indications are that we are out. Shanghai‘s backpack in production affect really high levels ready and sore Squires hi Sir gonna be a big deal OK thanks at second question and obviously data a higher probability you guys of been able to experience of Alaska quarters a lot of that is reflecting real improvements another part of it is because no longer paying you Ivan as much as we were in so I’m wondering in at the extent to which you in the board are in the process of completing another one of these long-term compensation packages which in the past of seem to work quite well thanks there a note Nova Scotia is currently underway for a ground competition for me thank you the next question comes from calling Ligon from Wells Fargo oh great take to go Siri yeah just pops up to keep going on there at the role material issue on the battery saver privacy seems pretty important how quickly can raw material supply the belt because my understanding it takes many years to build that out so are we just sort of facing when do you think we see a lithium shortage or nickel shortage and is there even enough time to build that’s for reminding capacity in place and then related you know how quickly can you switch to like LFP you know for for the Nick Lachey Taormino I’ll take the LP question like Lupino and it’s also in our letter but like half of our products for Pelletier last quarter which shows how quickly we were able to respond to that I said it wasn’t because of the Roman till shortage but just because it seem like the right thing to do we could change our cathode chemistry in and there’s more to be done on the on the on the cathode side and we are actively pursuing it to give us substitution flexibility in response to market conditions between the the other accountant had it in her vehicle service there are many options so you know we can I guess what I would say is specifically on the cathode side like flexibility is that is the way we’re going to achieve this and not all of the materials that going to cut those are actually for small hard to secure like through mining refining and and and second of all like it was very plentiful already like huge scale and you know if all of the batteries in the world useless cathodes it’s less than 1% increase in total annual outlets that’s that’s the that’s the cathode side and I think Ivan Artie spent a lot of time talking about lithium it’s really depends on the resources and some resources like just getting rocks out of the ground yeah expanding the amount of rocks you’re getting out of the ground is there may be a little bit of paperwork and some additional ton of it last thing and and and trucking and operations they’re finding his is his maybe where there’s you know it’s a little bit more chunky to her to bring it online but also they’re finding doesn’t it’s not like an old so much much smaller operation to refine Lithia motors parts arena or or or liquid I like a brine or or a bond in operation so you know you’re talking about a time scale of 1 to 2 years and it’s not like we haven’t been talking to all of the lithium suppliers out there for many years they have a lot of projects already in the pipeline to come online this year next sum of what’s going on in Lithia market this year doesn’t actually have truth to be her to them like fundamentals of supply and demand which is also a little frustrating but up but but yeah if we would pass this year next year into 2030 when we need 15 to 20 Terry one hours of the stuff to get on the GrowthReaktor it stay on the growth ejecta we’re on we need we need everybody to do more in the lithium space and they currently are yeah fantastic thank you very much Luis go to the last question from Mark Delaney from Goldman Sachs yes sir a good afternoon and thank you very much for taking a question or comment on your latest thought about potentially open up the charging at work in the US to non-Tesla orders and certainly really important to have a good experience for Tesla owners in terms of wait time to charge installs but it has a pool have left Cassidy it could be a really good way to bring other vehicle owners of the Tesla Netwerk pops up Tesla Tuesday at its network benefits in and maybe make more people likely to buy it has the vehicles in the picture yeah as as you on her side and as we publish it committed yeah we we do plan to two provide third-party vehicle access and all over the world nachos in Europe where are original pilot wasn’t we are working on solutions in North America which is a little bit more problematic with R connector being different than others but we are you know we are moving in that direction yeah yeah we’re going to the right things respect to the Hotel and we’re going faster on adding charges with the growth of the cars that were producing and then anticipating much is discussing overall charge of capacity it’s really important that the peace of our investments and supercharging has accelerated absolutely promise second question could you share any more details on Tesla insurance in particular as you’re walking out and more states are there any matter if she can share it won’t take rated been like and how do I profitability margins on the insurance offering compared to pop in average thank you so he just wants Tesla and Charmagne‘s real time insurance in Virginia Colorado in Oregon earlier this week maybe Wednesday atrocious in Texas is our longest standing will term insurance market but it’s funny information that we have Tesla is the second largest ensure of Teslas in the state of Texas and possibly by the end of the quarter maybe early next order will be the largest insurance of Teslas and so you know the customer reception for this has been quite positive and if I was reading social media on Monday after we launched in the three new states and a lot of folks were reporting their stories of saving quite substantial amounts of money relative to the previous insurance and so we’re quite encouraged by that and we’re working as quickly as we can to get to 80% of customers having access to a Tesla Troegs Park by the end of this year in the United States it which point wallpaper attention to expansion outside of the US insurances with these three new states and the model is different because we are now the underwriter and we are also not holding the risk and so with the states we are a fully vertically integrated provider of insurance from systems and financials to the financials of the program it’s still very early and so as the program gets more skilled happy to share more information on it notice that we are seeing that book and having real time feedback for driving habits that is actually resulting in Tesla owners driving the cars in a safer way so to see the real time feedback on OK this is this is affecting my insurance rate or it isn’t and I’m so boring people see it see a real time score make the polling traders mind driving habits then I feel less than insurance then I bury a real time feedback loop for a craving for you so so it is actually what we’re saying is it has caused people to drive their cars in safer manner good it’s safer on average what we see in the day that he loves playing 10 premiums are lower receiver in the take great day Dan is extremely high retention for customers experience the product in and I think I’ve talked about this in the past but this is become a real passion programs for us in for these benefits it’s bigger than just the air economics we’re trying to do a good thing here for customers save it save people money and make threats a little bit safer just a real macroeconomic emergency feedback before for Tesla because we see if there is in a crash large or small like we will see exactly what the cost and think about how can we change the design of the car or the software in order to minimize the probability of that or minor those accidents occur less frequently repair associate with an exit super fast quick aspiration to be like safety repaired from percolation might be different compared to to wait for a month while insurance claims are settled and figured out also drink collision repair yeah Ransom I mean we do claims management in house and so we received a notification that there’s an accident we were to prepare the estimate and done and we can you know with the support of our customers use our collision centers to do the repair him and so it’s your full into invisibility in all of that he wants point because identify areas of Costco in fish in Saint peters back to engineering teams or elsewhere softball teams actually pooped product is Larissa Costco Torrance in person I thought of the product so it’s a full full circle a customer experience it’s just probably better if there’s no argument we were paired immediately and this is gas compared to arguing with an insurance company and the claims adjuster and then question repair center nightmare basically so we’re trying to turn a nightmare into a dream with his insurance fantastic thank you very much unfortunately that’s all the time we have for this quarter so thank you very much for all your great questions and will speak to you again in three months