00:00Yeah, let's go right to Tesla. It just crossed the Bloomberg terminal. First quarter adjusted
00:03EPS, folks, $0.41 a share, $0.07 better than what the street was expecting. That's adjusted EPS.
00:12First quarter gross margin coming in stronger than forecast, certainly a sign of profitability,
00:1821.1% versus an estimate of 17.7%. First quarter revenue coming in slightly higher than what the
00:25street was forecasting, Tim, $22.39 billion. The street estimate was for $22.19 billion. Right
00:32now we're looking at shares of Tesla up about 1.75% in the aftermarket. Okay, so some other
00:38headlines crossed in the Bloomberg terminal. You mentioned free cash flow, but worth repeating
00:41because it is a redhead, Carol. First quarter free cash flow, $1.44 billion. The estimate was for a
00:46negative $1.86 billion. The Tesla communications around earnings are a slide deck, so it's kind
00:53of tough to go through. But Tesla says that the CyberCab, the Tesla Semi, the Megacap production
00:58starting in 2026, so that's this year. Tesla also saying the first-gen production lines for Optimus,
01:04that's the humanoid robot, are being installed. Tesla also saying the CyberCab and the Tesla Semi
01:10are on schedule for 2026. The company says seeing its rebounds in demand for EMEA and North America.
01:18And we should note that the company also says that tailwinds are persisting for the U.S.
01:23autos business, and it received approval for full self-driving in the Netherlands in April.
01:28All right. The stock, as you see, though, investors liking what it has to say about the first quarter
01:33in terms of a lot of those metrics actually looking better than forecast. And again, looking at some of
01:41the individual businesses, the company also saying it launched unsupervised robo-taxi rides in Dallas and
01:47Houston. As you mentioned, tailwinds persisting for the autos business, first-gen production lines for
01:54Optimus being installed. So much of the Tesla story is about what it's going to be done. It's classic
02:00vintage, if you will, at this point, Elon Musk. And we know we've talked a lot. We're anticipating the
02:06SpaceX IPO. Speculation, does everything get rolled into one company under the Tesla umbrella, whether it's
02:14the AI business. And how does everything work together? And that is certainly something we're
02:19watching and we'll be watching out for on the call today.
02:21Yeah. On that, the question is about what the identity of this company is. Investors are not and
02:27have not for years valued it as a car company. Many people who are bullish on the company say it's
02:30about AI. It's about autonomy. It's about creating that fleet of robo-taxis. You mentioned that it
02:35launched unsupervised robo-taxi rides in Dallas and Houston. The company also saying that robo-taxi miles
02:40about doubled sequentially. That's a measurement that Waymo uses as well to indicate the scale.
02:48Usage or testing or a little bit of both.
02:50Exactly. Well, this is usage, right?
02:52Yeah.
02:52But not everywhere. And the rollout is not as far and wide as it is for Waymo.
02:58Dana Hall on our live blog, senior reporter here at Bloomberg has been covering Tesla.
03:02She's saying, Tesla's saying, high up in the deck that demand has returned. Here's the quote.
03:07We saw continued growth and demand for our vehicles and markets in APAC and South America,
03:11while also seeing a rebound of demand in both the emerging markets and also in Africa and in North
03:17America.
03:18Okay. Look at that. Tesla shares higher right now, as we mentioned, just by about 3.4%. First quarter
03:25adjusted gross margin, excluding regulatory credits, was 19.2%. That's up from 12.5% year over year.
03:32The headlines, though, that are important for our audience, Tesla first quarter adjusted earnings
03:38per share coming in above estimates at $0.41. The estimate was for $0.34. First quarter free cash
03:44flow, $1.44 billion. The estimate was for negative $1.86 billion.
03:48All right. With us is Steve Mann, Global Autos and Industrials Research Manager at Bloomberg Intelligence.
03:52He joins us from BI headquarters in Princeton, New Jersey. Steve, come on in. Lots of moving parts,
03:58certainly when it comes to Tesla, but it was originally all about the EV business. We can
04:03get into other stuff later. How do you think they did in the quarter?
04:07You know, earning, like you said, earnings beat actually not a big surprise, given that production
04:13was pretty high in the quarter. And I think, you know, positive free cash flow is great versus
04:22the negative free cash flow consensus was expecting. That's probably a function of the higher profit
04:29for the gross profit for the quarter. I think investors will like this. If I lean into their
04:38investor deck, shareholder deck, they are ramping up the cyber robotaxi business. They have,
04:44you know, unsupervised ramp up over in three different cities. And then San Francisco area,
04:51they're actually have it running with a safety driver. So I think that's a good sign. I think
04:57that investors are pretty antsy about that. You know, including myself, you know, like we're waiting
05:06and thinking like, you know, are they, are they, how are they doing on this? So, you know, I think,
05:11I think they're ramping up according to plan. What's also interesting, and we actually wrote about
05:16this, is that the rest of the world markets for their auto sales is improving. Rest of the world
05:23basically excludes their three pillar markets, which is, you know, US, Europe, and China. So,
05:31you know, we, we saw, you know, they're actually doubling the footprint in Japan, South Korea sales
05:38up. They're starting to get into the India market, huge market potential. So let's, let's,
05:47let's hear what they have to say about the robot. You know, I'm not as optimistic on the robot.
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