Unidentified Company Representative: On the cost question, I guess, from the vehicle side, like as Drew mentioned earlier, we are always trying to engineer our products to be cheaper to make and more efficient to make. That comes obviously on the engineering side as we come up with new innovations but as well on the supply chain side. With our partners, we work with them to automate some of their lines and move their bottlenecks and their high cost as well. On the logistics side, getting parts to the factory, it’s not like a one thing that — you have to check cost everywhere and we do it ruthlessly at all times.
Unidentified Company Representative: Operations efficiency. All of the above.
Vaibhav Taneja: Yes. I would say there’s a whole laundry list of things, which we are chasing. We internally call it the cost attack, where we’re literally going line by line and saying how can we make it better. And it’s a grind.
Elon Musk: It’s a grind. It’s like Game of Thrones but pennies. I mean first approximation, if you’ve got a $40,000 car, and roughly 10,000 items in that car, that means each thing, on average, costs $4. So in order to get the cost down, say, by 10%, you have to get $0.40 out of each part on average. It is a game of pennies.
Unidentified Company Representative: We play it.
Elon Musk: Willingly, yes. We’ve done it many, many times. And even something as simple as like a sticker, like there’s too many stickers internally in the car that nobody ever sees. There’s something as simple as a QR code. You may think, well, putting a QR code on a part. Why don’t just put them on there, it’s like, well, are we actually going to use that QR code?
Unidentified Company Representative: That’s a penny.
Elon Musk: Yes, exactly. And then inevitably, sometimes the QR code doesn’t go on properly or you can’t read it properly, and it stops the line.
Unidentified Company Representative: More than a penny.
Elon Musk: Yes, absolutely. So chipping away, with — I mean it is trying to — it does feel like digging a tunnel with a spoon at times.
Unidentified Company Representative: Very much escaping prison.
Vaibhav Taneja: On top of it, like we said, we did some factory upgrades, so we expect volume to go up. That would also bring some savings from higher production. But then on the flip side, we’re going to be ramping a new product like Cybertruck, which we talked about. So, yes, so those are the real puts and takes what we are working for.
Elon Musk: Yes. But there’s not like some accidently some brick of gold that we go left in the car, unfortunately. And it’s — we’re trying to be very rigorous about improving the quality and capability of the car because it’s like any fool can reduce the cost of a car by making it worse and just deleting functionality and capability and that’s how I call this sort of any fool — like if you want to like lose weight and you’d say, well, I need to lose over 15 pounds right away, well, you could chop your arm off, but then you’re sitting with one arm. You’re still fat. So sort of like yes, you actually have to eat less food and work out. That’s the actual way. It’s not super fun because food is delicious. And personally, I’m not — I don’t love working out. I wish I did, but I don’t. Unless moving the mouse consists of working out, in which case, I love moving the mouse.
Martin Viecha: All right. Let’s go to Colin Langan from Wells Fargo.
Colin Langan: You said in the commentary that you’re not going full tilt on the plant in Mexico until there are signs that the economy is strong. Can you continue at a 50% CAGR without that plant? And where would that come from? And any color on what you mean sort of not going full tilt? Could that plant get delayed indefinitely, or what are you are kind of talking about?
