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Tesla Released Their Q4, 2021 Earnings - The Future Elon Sees That Many Don't

Tesla just had their Q4, 2021 earnings call with Elon Musk being on the call again. There were a lot of items discussed and Elon Musk is seeing a future that most people aren't getting. Let's talk about it.

Tesla Reports Strong Q4, 2021 Earnings

Tesla reported strong Q4, 2021 earnings that were close to what we predicted a couple weeks ago. Let's go over the most important topics from the earnings call and what Elon Musk sees in the future that most aren't realizing.

1: Tesla Bot is a Top Priority

Tesla Bot is a top priority for Tesla and many times during the conference call, Elon stated that this would be Tesla's most important product and would have an opportunity to be much larger than the auto business.

Elon asks the question: what if the economy has no labor shortage - would there ben an economy without limits?

Elon named the Tesla Bot, "Optimus Sub Prime" and the name Optimus is sticking with those working at Tesla's factory.

Elon says that the Tesla Bot will start with carrying parts around a Tesla factory for its first job. After that, Tesla Bot could even be more profitable than FSD and robotaxis.

2: The $25,000 Car

Tesla is not working on the $25,000 car, despite news and rumors that said this was happening. Elon confirmed that is just not true. In fact, Elon said that asking about the $25,000 car is the wrong question. The right question is autonomy - when is a car autonomous?

When a car becomes autonomous, the cost of transport drops 4 to 5 times and the financials of FSD become what Elon stated as "nutty good". Elon said he would be shocked if Tesla does not reach level 4 FSD by the end of 2022.

FSD will create the biggest increase in asset value in history. Most aren't understanding the gravity and significance of autonomy. Tesla is placing their bets on autonomy for the future.

3: 4680 Cells

Tesla will build their first cars from Giga Texas using the 4680 structural battery pack. Delivery should happen in Q1, 2022. Tesla is still constrained by the chip shortage.

The 4680 battery cells will cost less and provide more than the current batteries, ultimately improving Tesla's margins over time.

4: New Gigafactories

Elon stated that Tesla will possibly announce new Gigafactory locations at the end of 2022. I believe Tesla will take all their learnings from their first 4 and apply them to the next gigafactories.

My prediction for Tesla's next Gigafactories are South American and India.

5: Dojo

Elon Musk said that Dojo should be useful for something in the summer of 2022. FSD does not need Dojo to reach level 4 and beyond autonomy, but Dojo helps with costs and speed of training.

6: Tesla Insurance

Tesla is already in 5 states for insurance. In fact, we did an article from Dr. Know-It-All Knows It All, who talked about this. Zach Kirkhorn, Tesla's Master of Coin said that Tesla plans to be in about 80% of states in the U.S. by the end of 2022.

7: Tesla HVAC

HVAC means Heating, Ventilation, and Air Conditioning. Elon said this would be a game-changer down the road, but can't commit to a timeframe right now - they have too much on their plate. Model Y vehicles have HVAC, but Model 3 vehicles do not.

8: Cybertruck

The Cybertruck is being worked on and Elon stated that Tesla wants to make it affordable and still have all the technology that makes it awesome. The goal is to get it to 250,000 units per year and ramp from there, but it will take time to get there.

Main Focus

Tesla's main focus is:

Ramping production
Tesla Bot

Everything after that seems secondary.

Now, what Elon is seeing for the future that most people don't is that Tesla FSD and robotaxi will dwarf the auto business. And then Tesla Bot will dwarf FSD and robotaxi. Tesla could truly produce some staggering financials in the future.

What do you think of Tesla's Q4, 2021 earnings report? Are there 3 areas of focus what Tesla should be working on (production, FSD, Tesla Bot)?

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.

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