00:00Tesla released its first quarter earnings report yesterday. Tesla reported revenue of $19.34 billion,
00:07which is a 9% year-over-year decrease and below analyst expectations of $21.43 billion.
00:14Auto revenues were down 20% year-over-year. Elon Musk started the call hot by addressing
00:19Doge controversy and backlash. He also announced that starting next month,
00:24he'll be spending significantly less time with the organization.
00:27I'll continue to spend a day or two per week on government matters for as long as the president
00:32would like me to do so and as long as it is useful. Tesla's CFO said part of the earnings miss was due
00:37to lost production tied to the Model Y refresh. He also said vandalism and anti-Tesla hostility had
00:44an impact in certain markets. Tesla also gave updates on the upcoming RoboTaxi service launch
00:49in Austin. The company said it would start with 10 or 20 Model Ys on day one. Remote operators will
00:55also be involved at the launch to help with safety concerns. Tesla has promised to begin production
01:00of more affordable models in the first half of 2025. It didn't show off any of the upcoming models,
01:06but it did say that it's still on track to start production on that timeline. Tariffs were also
01:10brought up multiple times throughout the call. Musk said that Tesla is the least affected company when
01:15it comes to tariffs, but it can still be tough on a company when margins are low. The CEO also said
01:21that he's an advocate of predictable tariff structures as well as pre-trade and lower
01:25tariffs. I just want to emphasize that the tariff decision is entirely up to the president of the
01:30United States. I've been on the record many times of saying that I believe lower tariffs are generally
01:35a good idea for prosperity, but this decision is fundamentally up to the elected representative
01:39of the people being the president of the United States. During the call, Musk also said autonomy will
01:45start to affect Tesla's bottom line mid-2026, and he expects thousands of Optimus robots in Tesla's
01:51factories by the end of this year. Tesla also said during the call that even though it experienced
01:56economic strain in California, it remained the best-selling car. It also said there was a record
02:01number globally of Tesla test drives in the first quarter. Some of Tesla's numbers weren't great this
02:07quarter, but the stock went up over five percent in after-hours trading.
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