TESLA Q2-21 EARNINGS CALL

EV Channels Review

This Tesla Q2 2021 earnings call transcript reveals a company navigating significant supply chain challenges, particularly the global chip shortage, which Elon Musk identifies as the primary constraint on production growth. Despite these hurdles, Tesla achieved record production and deliveries, surpassing $1 billion in net income. The company is actively substituting chips and rewriting firmware to maintain output. Significant progress is noted on the Giga Texas and Giga Berlin factories, with new Model Y designs featuring cast front and rear bodies and aiming for structural packs with 4680 cells. However, Musk emphasizes the immense difficulty of manufacturing ramp-ups, comparing it to historical challenges faced by Ford and others. The development of 4680 cells is progressing, though technical challenges in high-volume production, such as calendaring issues, are being addressed. The Supercharger network is set to open to other EVs via the Tesla app, with dynamic pricing to manage utilization. The company also anticipates substantial increases in cell supply from both internal production and external suppliers in 2022, crucial for meeting demand for vehicles and energy storage solutions like the Powerwall and Megapack.