Tesla’s (NASDAQ:TSLA) first-quarter earnings call comes on the heels of a surprisingly powerful quarter that saw the electric car maker posting $5.985 billion in revenue and an earnings per share of $1.24, beating Wall Street’s estimates.
As revealed in the company’s Q1 2020 Update Letter, Tesla currently sits on $8.1 billion in cash, which should help the company weather the effects of the coronavirus pandemic. Tesla Model Y production has also outpaced the initial ramp of the Made-in-China Model 3. This is a notable feat considering the fact that Tesla China’s Model 3 ramp is already far quicker than the company’s push for the sedan in Fremont.
For today’s earnings call, Tesla executives are expected to address questions surrounding the company’s plans for the coming quarters, especially amidst the effects of the pandemic. Updates on future projects such as the Cybertruck, Semi, and Roadster may also be mentioned, as well as more details on future Tesla Energy projects.
The following are live updates from Tesla’s Q1 2020 earnings call. I will be updating this article in real-time, so please keep refreshing the page to view the latest updates on this story. The first entry starts at the bottom of the page.
16:36 PT – And that’s a wrap everyone! This earnings call got a bit intense thanks to Elon’s COVID-19 comments, but otherwise, it continued to emphasize that Tesla is well on its way towards optimizing its operations, from its production to the deployment of its new products to consumers.
16:35 PT – Pierre Ferragu from New Street Research asks for an update on Tesla’s gross margins. Kirkhorn stated that when Tesla looks at margins, credits are included. Shutdown inefficiencies in Fremont and Shanghai weighed down Tesla’s margins as well. The CFO did note that Tesla saw strength in gross margins across the board despite lower volumes.
Ferragu follows up with a question on energy storage and how demand is always outstripping supply. As with other battery questions asked during this earnings call, VP of Technology Drew Baglino noted that this inquiry will be addressed on Battery Day.
16:30 PT – Gene Munster from Loup Ventures asks about the Tesla Network and the company’s Robotaxi strategy. Elon states that much testing is needed for such capabilities to be rolled out. Musk discusses how Tesla rolls out its new Autopilot and FSD functionalities. He emphasized that each feature passes through several stages, from simulation to EAP to wide release.
Musk did state that he hopes full functionality of FSD will be released by the end of the year. After this point, it’s just a matter of refining the system. Initial Robotaxi services will likely start with human drivers to supervise the vehicles. But with more data, Tesla can propose a fully-autonomous ride-hailing service to regulators. Musk hopes to accomplish this to some degree next year.
16:20 PT – Ben Kallo of Baird takes the stage. He asks about Tesla’s cell strategy. The answer? Tesla does not have one specific model, though details of this would be discussed on Battery Day.
16:10 PT – Adam Jonas of Morgan Stanley takes the stage. He asks about updates on Tesla’s liquidity this April. CFO Kirkhorn stated that he doesn’t have much color to add, though he emphasized that Tesla has over $8 billion in cash. He also reiterated that Tesla has more inventory now due to the effects of the pandemic.
Elon did admit that he is a bit worried about the Fremont factory’s ongoing shutdown. He reiterates his recent controversial points on Twitter, criticizing the ongoing lockdown procedures in the Bay Area. He did state that it is not only Tesla that is at risk with the ongoing shutdown, as other companies are also in crisis now.
When asked about his message to lawmakers on how to handle the C-19 crisis, Musk stated that he believes people should be allowed to leave their homes. He does this with a number of choice words. These will be very controversial statements.
16:06 PT – Now for a question about Tesla’s plan to move into the residential HVAC business. Musk noted that Tesla actually does this well already with the Model S and Model X, since both vehicles have hospital-grade filters. He also mentioned that Tesla’s HVAC could be all-in-one water creator, hot water heater, and HVAC rolled into one device.
Musk also reiterated the demand for the company’s battery storage solutions. He stated that Tesla has enough demand for its battery storage systems, at least for 2020.
16:00 PT – Next up is the Solar Roof ramp and forecasts for 2021. Elon noted that before COVID-19 shut everything down, Tesla’s Solar Roof ramp was actually seeing a lot of momentum. He remains optimistic about the flagship product nonetheless. “I’m confident that maybe by the end of the year, we may be installing about a thousand a week,” Musk said.
“Demand is good, production is good. The hold up is the installation,” Musk stated, stating that installing the Solar Roof is the hard part, with 1,000 teams installing 1,000 roofs per week.
16:00 PT – Retail investors’ questions from Say are up. Next Giga announcement? Elon says that it will happen within the next three months. He did state that the next Gigafactory will be in the United States. That’s the Cybertruck facility. Perhaps that facility will also produce the Semi? It makes sense considering that Fremont is already at full capacity with Model S, 3, X, and Y.
15:55 PT – Ah, the Battery Day question. Elon states that there will be many exciting news to tell on Battery Day. It will likely be one of the most exciting days in Tesla’s history, Musk stated. The event will likely be held around the third week of May.
As for FSD commercialization, Kirkhorn explained that in North America, Tesla takes about half of the $7,000 FSD cost for revenue while the other half is dedicated for more feature development. Deferred revenue from autopilot a little over $600M as well. Musk notes that there is a tremendous untapped potential for Autopilot and FSD as in-app purchases as well. It looks like the subscription model is indeed happening, at least for existing customers.
15:53 PT – Now it’s the COVID-19 question and how Tesla will come out of the experience. Musk states that Tesla is focusing on investing in improving and developing its products. There is an uncertainty, and there is a bumpy road, but “long-term prospects are extremely good,” Musk noted. Kirkhorn stated that Tesla’s digital nature actually deals with the pandemic situation well, with touchless deliveries and other similar initiatives. “For most people, they would rather go to the dentist than to buy a car… For Tesla, it’s as easy as ordering something from Apple’s app store or Amazon,” he said.
15:50 PT – Next question is China’s subsidies, which the MIC Model 3 does not meet today. Elon announced that Tesla China will be reducing the price of the Standard Range Model 3, allowing the vehicle to meet the requirements of the government’s subsidies. Kirkhorn adds that the cost of producing the vehicle in Shanghai is already lower than the costs of production in Fremont, and there are still opportunities to optimize this further.
15:48 PT – Questions from Say begin. First off is the possibility of FSD subscriptions. Elon states that it makes sense to buy FSD an investment in the future, and Tesla is confident of its long-term value. Kirkhorn agreed, though he stated that a subscription model can allow owners to spread out the expenses for such an option. “Our goal is to do the best thing for customers,” Musk said.
15:45 PT – CFO Zach Kirkhorn takes the stage. He begins by highlighting how the Model Y started with profitability, something that has not been accomplished in the past. Kirkhorn stated that Tesla did not see much effects from the expiration of the federal regulatory credits. Model 3 production in China is going well too.
That being said, Kirkhorn mentioned that Tesla did meet some headwinds. Production inefficiencies still happened, such as with the ramp of Solar Roof V3. The CFO added that Model Y in Shanghai and Berlin are on track, and for now, Gigafactory 3 remains the one factory that is still operating fully.
15:40 PT – Musk also touched on the Model Y’s two-piece casting design, which will make production more optimized while saving weight and cost. He also mentioned the introduction of the Model Y’s heat pump, which helps the Model Y maintain its industry-leading range despite being larger than the Model 3. Musk also stated that the reception to the Model Y from customers has been “universally positive.”
In conclusion, Tesla will be continuing Model Y production at full speed in Fremont, Shanghai, and when it’s ready, Berlin. Musk lightly remarked that this is a forward-looking statement, though he stated that by next year, he believes Tesla can have a capacity of 1 million cars per year.
15:35 PT – Elon Musk states that Tesla was able to make a profit despite the ongoing headwinds in the market and a seasonally soft quarter. Model Y production in Fremont in Q1 was faster than the first two quarters of Model 3 production. The Y is also profitable from launch, something that has not happened before.
Elon also touched on Tesla’s Traffic Light and Stop Sign Control feature. He is very optimistic, stating that the feature is growing at a rapid rate. Each use of the feature trains Tesla’s Neural Net further. “I feel extremely confident that it will be possible to do a drive from your home to your office with minimal interventions by the end of the year,” Musk said.
Musk also spoke about the Model S and Model X range increases. Musk stated that the real Model S test was 400 miles, but the vehicle ended up losing 2% of its range before it was tested. “The true range of the Model S for the past two months is 400 miles. We’re not stopping now,” Musk added.
15:33 PT – Senior investor relations officer Martin Viecha takes the floor. Elon Musk and Zachary Kirkhorn are present. Elon Musk takes the stage with his opening remarks.
15:30 PT – And the call begins, though Tesla seems to be a bit delayed. I’m strangely wondering if the call will be held using Skype or Zoom due to social distancing rules. That would make this earnings call extra interesting.
15:25 PT – T-5 minutes until the earnings call is scheduled to begin. Now it’s just a matter of seeing if Tesla will start in Elon Time V1.0 or Elon Time V2.0.
15:15 PT – It is time once more for Tesla’s quarterly earnings report! It’s pretty amazing that they were able to end the first quarter with a profit. Imagine that. A profit. In the first quarter. With some of it being under a literal global pandemic. The Q1 2020 Update Letter is full of interesting details. Fasten your seatbelts, everyone. This will be very interesting.
Tesla $TSLA Q1 2020 results: Beats on revenue, Model Y sets historic profit on launch https://t.co/0Z5Ym5t4eh
— TESLARATI (@Teslarati) April 29, 2020
Investor's Corner
Tesla Optimus Gen 3 shows off a cleaner, factory-ready design in new app discovery
Renders hidden inside Tesla’s Android app show Optimus Gen 3’s design before any official reveal.
![Tesla Optimus Gen 3 [Credit: Tesla]](https://www.teslarati.com/wp-content/uploads/2026/03/tesla-optimus-gen3-diner.jpg)
Tesla may have accidentally given a first look at its newest Optimus Gen 3 humanoid robot when photos were found in the Tesla smartphone app.
Design files tucked inside a recent Android version of the Tesla app appear to show the third generation humanoid robot next to the older Gen 2.5 prototype. The assets were extracted from the app package by Tesla community member @wholemars, who posted the renders on X late Tuesday night before deleting them. The Tesla Newswire reshared the side by side comparison on Wednesday, and the images have circulated widely since.
Tesla Optimus Gen 2.5 vs Gen 3 comparison via @WholeMars on X
The files are labeled “gen3” and were built as models for Tesla app’s own interface, as validated directly by Grok to be official.
The comparison shows a robot that looks built for a factory line rather than a lab bench. Gen 2.5’s exposed mechanical linkages and gold plating on the knees and shins are gone. In their place, Gen 3 uses matte black fairings on the lower legs, paired with a more contoured champagne gold body. Flexible covers now seal the joint where the torso meets the upper thighs, keeping bearings and moving parts sealed from debris and unnecessary contact.
The body panels fit more tightly, and the hands, which Tesla has said carry 22 degrees of freedom, look far more refined than those on earlier units.
This most recent leak fills a gap Tesla has left open for most of the year. Elon Musk said on March 31 that Optimus 3 was walking around but needed “some finishing touches” before it could be shown, a delay Teslarati covered when Tesla missed its first quarter reveal target. Musk later said Tesla would hold the design back until closer to production, partly to keep competitors from copying it. No reveal date has been announced.
The app itself has been preparing for Optimus for months. In July, code in the Tesla app pointed to a dedicated robot phone key, a consent screen for collecting video and spatial data while Optimus works inside a home, and an alert system for low battery and mechanical faults. Finished 3D models of Gen 3 suggest the interface owners will eventually use is moving past placeholder code toward something Tesla intends to ship.
Manufacturing is moving in parallel. Tesla tore out the original Model S and Model X lines at Fremont this summer to make room for Optimus production, with a planned capacity of one million robots a year. At Giga Texas, the steel frame of a dedicated Optimus factory is nearing completion ahead of a targeted 2027 start, with Musk pointing to an eventual output of 10 million units annually.
Elon Musk
X changed how everyone gets paid, and this lawsuit shows why
X sued a Bitcoin account network over fake payouts as its creator pay model shifts
Elon Musk’s X has taken a Bitcoin-focused engagement ring to court, and the case doubles as a receipt for how differently the platform pays creators today. The company filed suit in the High Court of England and Wales against Vivek Kumar Sen and Zamyang Sherpa, alleging the pair ran six accounts, including @Vivek4real_, @Bitcoin_Teddy and @TrendingBitcoin, as one coordinated operation to fake the kind of engagement that used to translate directly into money.
According to the filing, first reported by Gizmodo, the accounts posted near identical “BREAKING” crypto headlines seconds apart, in one case 11 seconds, then had three more handles like, reply to and repost the material to manufacture what X called “a false appearance of genuine, human communication and interaction.” X says the scheme pulled in at least £207,384, about $278,000, and pegs its own investigation and remediation costs at another £75,000. The accounts were suspended August 18. X general counsel James Burnham announced the case on X last weekend, writing that the company “will act forcefully to protect our platform and the earnings of genuine creators.” Musk’s own reaction, posted shortly after, was three words: “Don’t mess with 𝕏.”
Don’t mess with 𝕏 https://t.co/HSmd5hL6aQ
— Elon Musk (@elonmusk) September 21, 2026
The timing lines up with a a recent update to how X pays its creators. The program these accounts allegedly gamed, Creator Revenue Sharing, launched in mid 2023 and paid out based on how much a post got engaged with. Originality was never part of the formula, which is exactly how the platform ended up flooded with recycled clips, copy pasted “BREAKING” posts and replies engineered purely to farm reactions from paying subscribers.
X tried patching the model more than once, including an April cut to aggregator payouts and a March regional weighting change that Musk personally paused hours after it was announced. X retired Creator Revenue Sharing for good on September 7 and opened its replacement, Original Content Rewards, the next day.
Today, we’re launching Original Content Rewards.
The reality is that Revenue Sharing had reached a point where its incentives were misaligned. Creators should be focused on bringing net new content to the platform instead of maximizing payouts. We could have kept adding more… pic.twitter.com/VJIxqlPrjm
— Allegra Jacchia (@allegrajacchia) August 7, 2026
The new math is stricter. Payouts now come only from qualified impressions, meaning unique Home Timeline views from Premium subscribers where at least half the post is visible, and replies no longer count toward eligibility at all. Copied posts, reuploaded media and reposts without meaningful changes are explicitly excluded. Allegra Jacchia, senior product manager for Creators at SpaceXAI, which now runs X’s product and AI work following xAI’s acquisition of the platform, put it bluntly, saying the goal is to reward creators who bring original ideas and perspective, “not those who have become best at gaming the system.”
Read that way, the lawsuit isn’t really about six crypto accounts. It’s X putting a dollar figure on what the old incentive structure cost, then suing to collect it right as the new one goes live. For live updates on how the case and the new rewards program shake out, follow @Teslarati on X.
Elon Musk
Why automakers keep turning down Elon Musk’s Tesla Full Self-Driving offer
Elon Musk confirms no automaker has ever accepted Tesla’s offer to license Full Self-Driving software.
Elon Musk gave a brief answer on X Monday that confirmed that Tesla’s standing offer to license Full Self-Driving to other automakers still has zero takers. Sawyer Merritt wrote that “Tesla has for years openly invited other automakers to license FSD. None of them have accepted,” responding to a prediction from Boom Supersonic founder Blake Scholl that Tesla would eventually open FSD the way it opened its Supercharger network to rival brands. Musk’s reply to Merritt was one word: “Exactly.”
It is not the first time Musk has made this point. He said something similar in November, when he called legacy automakers reluctance to adopt FSD “crazy,” and Tesla has floated the offer publicly since at least 2021. Scholl’s prediction touches on something real. Once NACS became the de facto charging standard, adoption from Ford, GM, Rivian and others followed within about a year. FSD licensing was supposed to work the same way once Tesla built enough of a lead that switching made sense for everyone.
Tesla has for years openly invited other automakers to license FSD. None of them have accepted. https://t.co/kgz4idpoUM
— Sawyer Merritt (@SawyerMerritt) September 22, 2026
The case for licensing now is stronger than it was two years ago. Waymo and Zoox are logging hundreds of thousands of unsupervised autonomous miles, along with Tesla’s own Robotaxi fleet. Every automaker still selling driver assist systems that lag FSD has given the robotaxi conversation to Tesla, Waymo and Zoox by default. Licensing FSD would let a GM or a Ford compete on the same field without spending a decade and billions of dollars building a stack from scratch, the same argument Tesla made when it opened the Supercharger network to bring more EVs onto its chargers.
But FSD is not a connector standard. As one reply to Musk’s post pointed out, licensing FSD is not a software license the way NACS was a plug spec. It requires adopting Tesla’s eight camera layout and its onboard compute architecture, meaning a licensee’s cars would effectively become Tesla hardware wearing someone else’s badge. That is the visible obstacle. The less visible one is data. A licensed FSD stack would report back the same telemetry Tesla collects from its own fleet, giving Tesla a continuous read on how a competitor’s cars are actually driven, where they struggle, and how often drivers intervene. For an automaker trying to build its own autonomy program, or simply trying to keep its build quality and safety record private, handing Tesla that visibility could be a bigger cost than the hardware bill. It is the reason the Supercharger comparison only goes so far. Opening a charging plug cost Tesla very little. Opening FSD would cost a rival something it cannot get back.
![Tesla Optimus Gen 3 [Credit: Tesla]](https://www.teslarati.com/wp-content/uploads/2026/03/tesla-optimus-gen3-diner-80x80.jpg)
Tesla Optimus Gen 3 shows off a cleaner, factory-ready design in new app discovery
Tesla Semi lands the biggest electric truck deal in U.S. history
