Tesla held their Q3 2022 earnings call on Wednesday
Tesla
Tesla has grown at an incredible rate, but according to Elon Musk, we haven't seen anything yet. So the company's CEO made the earnings call a can't miss event for investors and enthusiasts. The third quarter earnings call highlighted expected growth, buybacks and resumes. After the call, Musk tweeted: I will not let you down, no matter what It takes. Here is a quick recap of what we learned from the 58-minute call.
First, there are some quick points before we get into more detailed highlights. Musk says quarter-four is shaping up to be "epic" and promises a record-breaking performance. Tesla is not "recession-proof," but is resilient. Musk does not see any reason to slow down production, as demand is still far more than supply. RoboTaxi is progressing. The program would provide autonomous vehicles as cabs, but hinges on the full self-driving program.
Tesla Will Have the Largest Market Cap
In his opening remarks to investors, Musk made an extraordinary prediction. He said that Tesla would have the largest market cap in the world, surpassing second-place Saudi Aramco and first-place Apple. Not only would his company take the lead, "In fact, I see a potential path for Tesla to be worth more than Apple and Saudi Aramco combined."
The combined market cap of those two companies is more than 4.4 trillion. Tesla is worth just over $690 billion. Musk says it won't be easy, but "It will require a lot of work, some very creative new products, manage expansion and always - luck… We have an incredible product portfolio. I think we've got the most exciting product portfolio of any company on earth, some of which you've heard about, some of which you haven't." He later added that this prediction did not include Optimus coming to market. Tesla recently updated its humanoid robot to be put to work in Tesla factories before being available to the world in 2027.
Buybacks Could Happen in 2023
The topic of buybacks regularly surfaces during these earnings calls. Musk said that it has been discussed, "extensively at the Board level. The Board generally thinks that it makes sense to do a buyback." He added that the company would be looking at doing a buyback of $5 to $10 billion, and even if 2023 is a down year, "it's likely that we'll do some meaningful buyback."
Unfortunately, the buybacks won't happen before the 1% tax on buybacks kicks in on January 1, 2023. Some speculate this is the real reason the buybacks were pushed to next year, to avoid the optics of trying to dodge a new tax.
Tesla is Becoming the Go-To for the Brightest Minds
A.I. Day 2022 was a big hit, not only for showing off Optimus and Full Self-Driving improvements but generating interest in the company. While A.I. Day is viewed by many as a way for the company to show off its latest achievements, it's a recruitment drive.
Tesla includes several staff members to discuss projects, while Musk encourages people with interest to apply. "We've seen a massive influx of world-class artificial intelligence engineers and scientists resumes. So, it generated a tremendous amount of interest from some of the best AI researchers in the world. I can't emphasize the importance of this enough because I think finally it has become clear to the smartest AI technologists in the world that Tesla is among the very best."
50 Percent Annual Growth
Tesla is going to need all the help it can get. The company is still committed to growing by 50 percent yearly in both deliveries and revenue. "We expect to sell every car that we make for as far into the future as we can see. So, the factories are running at full speed, and we're delivering every car we make and keeping operating margins strong," said Musk.
Despite the company's strong growth, he admits Tesla is still tiny in the big picture: "We are still a very small percentage of the total vehicles on the road. Of the 2 billion cars and trucks on the road, we only have about 3.5 million. So, we've got a long way to go to even reach 1% of the global fleet."
That said, there has been a monumental shift to electric vehicles in the past year, prompting Musk to say, "I think the public, at large, realizes that everyone's moving towards electric vehicles and that it's foolish to actually buy a new gasoline car at this point because the residual value of that gasoline car is going to be very low. So, I think we have to be in a very good spot."
That means there are two billion cars that could be retired in the coming years and replaced with electric vehicles. Therefore, the consumer pool will only get bigger and demand for EVs will continue to grow,
Tesla has released software update 2025.2.6, and while minor updates typically focus on bug fixes, this one introduces a major new feature. With this update, Tesla has activated the in-cabin radar, a sensor that has been included in some vehicles for more than three years but remained unused until now.
Why Not Vision?
Unlike vision-based systems, radar can precisely measure object dimensions and even detect movement behind obstacles by bouncing radio waves off surrounding surfaces. This allows for more accurate and reliable measurements of objects that vision may not even be able to see, such as behind the front seats.
What Tesla Announced
Tesla recently highlighted the 4D radar in the new Model Y, explaining how it will improve passenger safety. Tesla executives stated that the radar would be used to properly classify passengers and improve the way airbags deploy.
Tesla went on to say that in a future update, Tesla will use the in-cabin radar to detect any potential passengers left in the vehicles. Since radar can even pick up on heartbeat and breathing patterns, it can provide a much more accurate method of detecting children left in a vehicle. Tesla talked about how the vehicle will send owners a notification via the Tesla app and enable the HVAC system if it detects a passenger in the vehicle. It’ll even call emergency services if needed.
New Feature in Update 2025.2.6
Tesla has officially named this feature in update 2025.2.6, “First-Row Cabin Sensing Update,” which appears to align with the first portion of what Tesla discussed in the new Model Y video.
In the release notes, Tesla describes the update as:
“The first-row cabin sensing system has been updated to use cabin radar, which is now standard in all new 2025 Model Ys. Your Model Y was built pre-equipped with the necessary hardware, allowing Tesla to also bring this technology to your vehicle.”
For now, it appears that Tesla is using the radar to detect and classify passengers in the front seats. This could eventually replace traditional seat sensors, reducing the number of hardware components and lowering production costs.
Tesla plans to expand the feature later this year, bringing rear-seat passenger detection in Q3 2025. While Tesla talked about the feature for the new Model Y, we expect it to be available for all vehicles with the in-cabin radar.
Supported Models
Although Tesla is vague in their release notes, this feature is being added to all Model Ys that include a cabin radar. Tesla started including the cabin radar in 2022, but its availability may vary by region and model. The Model 3 didn’t receive the cabin radar until it was redesigned in 2024, while all Cybertrucks already include it.
The owner’s manual for the redesigned Model S and Model X doesn’t specifically mention the interior radar, although Greentheonly believes the vehicles also include one, so we’ll have to wait to determine whether those vehicles also receive this new feature.
At this time, the feature appears to be only going out to Model Y vehicles, but we expect it to become available on other supported models soon.
We love to see these kinds of updates. Tesla is increasing the safety of existing and new vehicles through a software update while also making them more affordable to own.
Tesla has updated the Tesla app to version 4.42.0, and this time, it’s more than just bug fixes. The app includes a new service interface, introduces support for the new Model Y, and, for the first time, includes some code for the Robotaxi coming later this year.
This update was released for iOS and should be available on Android within a few days.
Refreshed Model Y 3D Model
First up in the update is the introduction of the 3D model for the refreshed Model Y. Interestingly, while we all know it as Juniper, the file code name inside the update lists the vehicle as “Bayberry.” The Bayberry name was introduced in Tesla app update 4.41.5. Tesla’s internal code names sometimes change as the vehicle evolves - and we’ll continue to refer to it as the refreshed or new Model Y for ease of understanding.
A rear-angle shot of the Refreshed Model Y from the Tesla App
@olympusdev_ on X
As usual with Tesla’s 3D models in the app, there’s a lot of detail, although it’s not easy to see since you can pinch and zoom the model in the app. The 3D models used in the app are actually the same models that Tesla uses in the vehicle, although sometimes they include different lighting effects, but they’re all highly detailed.
Robotaxi API
Tesla has added a new endpoint in their app for Robotaxi - and it’s the very first Robotaxi or Cybercab-related item we’ve seen in the app. With the Robotaxi fleet launching in June, according to Tesla, it looks like they’re now adding support to the Tesla app.
What the Robotaxi interface is supposed to look like in the future.
Not a Tesla App
The new app API is called “rides_feedback_upload,” which seems pretty explanatory. Tesla will need to gather a lot of information on ride quality and all the little things in between. What better way than to get feedback directly from users?
While Tesla previously released prototype images of what the Robotaxi app will look like, the introduction of this API into the Tesla app leads us to believe that Tesla will utilize the current app for Robotaxi use.
Updated Service Interface
The Updated Service Panel in the Tesla App
Not a Tesla App
Tesla has released an updated UI for the Tesla Service panel, and we have a ton of details on these changes. This new pane displays appointment details more prominently. If you have a service appointment scheduled, you’ll now see a lot more details on the main service screen. The app will now display:
Your current service status
Appointment date and time, which you can now tap on to add the event to your calendar
Address and hours of the service center. You can now also tap on the address to open up the location in your maps app
There’s also a new appointment details screen (the right portion of the image). This screen displays additional details that were previously unavailable, such as your transport type. The app will display whether you’ll get a loaner vehicle, demo vehicle, or something else.
There are a ton of user experience (UX) improvements in this update regarding service, including clearer language, improved UI fixes to images, and more.
Tesla has been making a lot of positive updates to the Service-related sections of the app lately, and we’re happy to see these coming rapid-fire. Tesla Service is now easier to use and understand. In the previous app update, Tesla also added the ability to pull down to update the service screens.
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![The Design & Engineering Behind the New Model Y [Video]](https://www.notateslaapp.com/img/containers/article_images/model-y-2025/2025-model-y-speaker.webp/e933556c6b2b4ce77ab652524f3a8ac0/2025-model-y-speaker.jpg)
