a, continues to be at elevated levels and we expect this trend to continue for the full year 2026. We did end up CapEx being slightly below our previous guidance of $9 billion. But like, as Elon already mentioned, this year is going to be a huge investment year from a CapEx perspective. At the moment, we are expecting that CapEx would be in excess of $20 billion. We will be paying for six factories, namely the refinery, LFP factories, CyberCab, Semi, a new mega factory, the Optimus factory. On top of it, we will also be spending money for building our AI compute infrastructure and will continue investing in our existing factories to build more capacity. While this may seem a lot, we believe this is the right strategy to position the company for the next era. We will make such investments, as Elon mentioned, in a very capital-efficient manner. Starting not the next chapter, but a new book on the progression of this company. For again showing the confidence in us, let's get ready for a future of amazing abundance. The first question is, today there are approximately 90 million cars sold globally each year. have a view, based on its robotaxi ambition, what this number will be in five or ten years? And how does this impact Tesla, Inc.'s EV strategy to have more models? Lars Moravy: Obviously, autonomy and CyberCab are going to change the global market size and mix quite significantly. General transportation is going to be better served by autonomy as it will be safer and cheaper. Over 90% of vehicle miles traveled are with two or fewer passengers now. have the advantage of efficiency, cost, and manufacturing at scale that really no one else has. We believe that the segment we are creating will grow millions year over year. The point that Lars made, which is that 90% of miles driven are with one or two passengers or one or two occupants, essentially, is a very important one. Because that implies that the CyberCab, which is a dedicated two-seater dedicated robo taxi, is a little confusing with the terms robo taxi and CyberCab. In fact, in some states, we're not allowed to use the word cab or taxi, so it's going to get even more strange. But the CyberCab, which is a specific model that we're making, does not have a steering wheel or pedals. We would expect over time to make far more CyberCabs than all of our other vehicles combined. Given that 90% of distance driven or distance being distance traveled exactly, no longer driving, is one or two people. It would mean that long-term CyberCab would make several times more CyberCabs per year than all of our other vehicles combined. Are there still plans to launch new models to address different price segments and vehicle types which could materially expand the TAM for Tesla, Inc.? To further on what we were just talking about, we've launched our least expensive models ever over the last few months and are continuing to expand those models globally. Over the last decade, we have continually brought down the cost of our vehicles without sacrificing range, performance, or premiumness. We will continue to do that, as Vaibhav said, investing in our factories, but these are all trade-offs of where we spend our time or money. To Elon's point just now, CyberCab coming, we are aiming to bring that Tesla, Inc. Of course, we do have plans to have robotaxis in various shapes and sizes, but obviously, CyberCab will be the grand majority of that volume. Are there standalone gross margin targets for the current models excluding the benefits for FSD sales? Vaibhav Taneja: You know, we've talked about this with the previous two questions, but transportation, as we know, is changing. I think we cannot keep applying the same framework from a car sales model to the future, what we are trying to do. As we aim to maximize the global fleet, we have been laser-focused on COGS from our side to make sure because that is something which we manage. Like, the CyberCab, the whole design of CyberCab was to optimize the fully considered cost per mile of autonomous driving. It's a different design problem than if you're trying to design cars for people who will be driving versus being driven. So CyberCab is super optimized for minimum cost per mile and also for a much higher duty cycle. You would expect CyberCab to be used probably fifty or sixty hours a week instead of the ten or eleven hours a week that a driven vehicle is used. Typically, people might drive their car for an hour and a half a day on average, so it's like ten hours a week out of a hundred and sixty-eight. But I think an autonomous vehicle is likely to be used probably five times as often. Which means that you need to design the vehicle for much more wear and tear per unit time and much more resilience. It's more like a commercial truck that's in continuous operation or close to continuous operation. Vaibhav Taneja: And so we will have larger vehicles in the CyberCab in the future that are designed for full autonomy. We've actually shown pictures of this and in fact have shown prototypes. It's like we're literally saying what we're gonna do and have said what we're gonna do for a while. Travis Axelrod: The next question we unfortunately have to skip because it's not related to Tesla, Inc. We would like to remind folks who use the say platform to please focus these questions on Tesla, Inc. Which is what is the current bottleneck to increased Robotaxi deployment and personal use unsupervised FSD? Is it the safety and performance of the most recent models or is it people to monitor the robotaxis in car, or remotely? We have scaled the robotaxis service that's available to customers over the last year. In order to just learn these scaling problems without having to wait for unsupervised. Secondly, be laser-focused with the engineering team to solve the unsupervised FSD problem. I think some customers took rides last week and also service continues today without any real cars, something like that. Separately, we did scale the fleet size in the Bay Area and in Austin. Through that, we learned issues with charging and other issues that we would have seen once we scale the unsupervised fleet. A variant of the software that's used for the robotaxis service was shipped to customers with v14 and customers saw a huge jump in performance. Lars Moravy: Adding to that a little bit with what Ashok said about learning about our charging and service needs. We're using our vast network of charging and service centers that really only Tesla, Inc. We expect that because of this network, we are the only company capable of scaling at the rate that is needed for the tsunami of autonomy that has come. After the unveil of the Cybertruck, Elon stated that if it didn't sell well, Tesla, Inc. How practical would it be to create this new design on the Cybertruck architecture, and could it be conveniently built on the existing production lines? Lars Moravy: Actually, in its segment, CyberTruck can be a leader and is selling more than any other electric truck out there. But to the question itself, from a line standpoint, we always design our lines to be super flexible. The Cybertruck line was designed in the same way and is one of our most fully ready for autonomy platforms. We will transition the Cybertruck line to just a fully autonomous line. There's obviously a market there for cargo delivery, like you say, localized cargo delivery within a city, within a few hundred miles, something like that. There's a lot of cargo that needs to move locally within a city, and an autonomous Cybertruck could be very useful for that. Regarding Optimus, could you share the current number of units deployed in Tesla, Inc. What specific roles or operations are they handling and how has their integration impacted efficiency or output? Elon Musk: Well, we are still very much at the early stages of Optimus. But as we iterate on new versions of Optimus, we deprecate the old versions. We wouldn't expect to have any kind of significant Optimus production volume until probably the end of this year. It's an awesome robot that minimizes any differences, but it looks like a human. This helps our strategy for the AI too because you can learn how humans do these tasks, and it's very easy to teach the robot in the same way. Elon Musk: I guess one thing I should say, there's a lot of news of various companies announcing layoffs and whatnot. factory in Fremont, we actually expect to increase headcount over time. Travis Axelrod: The next question similar to the other autonomy questions but slightly different, when is FSD going to be 100% unsupervised? We obviously have cars operating with no one in them and no safety monitor and no follow car or anything like that in Austin right now. With each successive version as we prove it out and we make sure that there are no unique issues in particular cities. It will be an intersection where a lot of humans have accidents, by the way. There are some pretty nutty intersections where a lot of humans make mistakes and have accidents in various cities. If you take LA, for example, where Wilshire and Santa Monica combined is like there's about 20 traffic lights. You want to make sure that FSD can handle things in a particular city. With each successful release of FSD, we will reduce the amount of driver monitoring that's needed proportionate to the safety of the FSD build. As it relates to Robotaxi, what has surprised you about the rollout so far? We've talked about what's constrained the fleet expansion to date, but it appears there are 200 vehicles based on public tracking. Ashok Elluswamy: I wouldn't say there's anything that really surprised us because we are a large fleet. It was just continued work to grind down on the long tail of issues, and that's what enabled us to launch the unsupervised service in Austin. In terms of taxi vehicles carrying paid customers, I think we're well over 500 at this point between the Bay Area and Austin.
