Musk says FSD is biggest driver of Tesla demand, which he says far exceeds capacity
In short
Tesla CEO Elon Musk said on the company's earnings call that demand for Tesla cars is growing quickly and far exceeds production capacity. He named FSD as the biggest driver of demand and said Tesla is pushing for approval in more markets, hoping for EU-wide approval within months, possibly as late as the first quarter of next year.
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Tesla CEO Elon Musk said on the company's earnings call that demand for Tesla vehicles is growing quickly and far exceeds production capacity. CLS said the call took place on Wednesday US Eastern time. Musk said Tesla will undoubtedly raise output and is already expanding production significantly. [ 1 , 2 , 3 ]
Musk said the biggest driver of that demand is FSD, Tesla's full self-driving system. In his words, no car currently on sale can compete with Tesla at the FSD level. [ 1 , 2 , 3 ]
He said Tesla is producing and delivering as many vehicles as it can while pushing for FSD approval in more markets. FSD has already been approved in several European countries, he said, and Tesla hopes to obtain approval across the whole EU. [ 1 , 2 , 3 ]
Musk said the timing is hard to predict. Approval could come within a few months, but he would not be surprised if it slipped to the first quarter of next year. He added that the pace of approvals is not in Tesla's control, but that Tesla expects FSD eventually to be approved across Europe and in many other countries. [ 1 , 2 , 3 ]
IT Home also reported that Musk believes the humanoid robot sector will become the world's largest industry and that robots will eventually outnumber humans on Earth. According to IT Home, he expects problems with robot AI, electromechanical design, reliability and service life to be resolved by the end of next year, and said Tesla could deliver Optimus to companies outside Tesla only at that point. [ 3 ]
CLS published its report at 11:22 local time, 36Kr republished it at 11:54 with a CLS credit, and IT Home published its own account at 12:02. [ 1 , 2 , 3 ]
Why it matters
The coverage is based on Musk's own statements on the call, so the claims about demand and FSD competitiveness are the company's view. The timing of EU-wide approval for FSD, which Musk said Tesla does not control, remains open.
Key facts
- Musk said on Tesla's earnings call that market demand for Tesla vehicles is growing quickly and far exceeds production capacity. [ 1 , 2 , 3 ]
- Musk said Tesla will undoubtedly raise output and is expanding production significantly. [ 1 , 2 , 3 ]
- He said the biggest driver of demand is FSD, and that no car on sale can compete with Tesla at the FSD level. [ 1 , 2 , 3 ]
- Musk said FSD has already received approval in several European countries and Tesla hopes to obtain approval across the EU. [ 1 , 2 , 3 ]
- Musk said EU-wide approval is hard to predict: it may come within months, but a delay to the first quarter of next year would not surprise him. [ 1 , 2 , 3 ]
- Musk said Tesla does not control the pace of approvals but expects FSD eventually to be approved across Europe and in many other countries. [ 1 , 2 , 3 ]
Confirmed by several sources
- Musk said on the earnings call that demand for Tesla vehicles is growing quickly and far exceeds capacity, and that Tesla is significantly expanding production. [ 1 , 2 , 3 ]
- Musk said FSD is the biggest driver of demand and that no car on sale competes with Tesla at the FSD level. [ 1 , 2 , 3 ]
- Musk said FSD is already approved in several European countries and Tesla wants EU-wide approval, which could come in months or slip to the first quarter of next year. [ 1 , 2 , 3 ]
Still unclear
- When EU-wide approval for FSD will be granted. Musk called it hard to predict and said the approval pace is not in Tesla's hands.
- Musk's remarks on humanoid robots: that the sector will become the world's largest industry, that robots will outnumber humans, and that Optimus could be delivered to outside companies only after problems are solved by the end of next year. Only one outlet, IT Home, reports these remarks.