John J. Murphy - Bank of America Merrill Lynch
Good afternoon. The first question is, as we think about the 60 kilowatt-hour versions of the Model S and Model X, I'm just curious if you could talk about the profitability of those right now versus the other models or the corporate average as you see it?
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Elon Reeve Musk - Chairman, Product Architect and CEO
Yes, so I was going to say, because people are optioning up the 60 kilowatt-hour, it actually ends up being decent. Maybe it's sort of like 15% to 20% gross margin where I say something like if somebody orders a Performance Dual Motor that might actually be more like a 30%, 35% gross margin. But there's just a small number of people that want high-performance cars and are willing to pay triple digits – six digits I should say. But it also remains to be seen how many who order the 60 kilowatt-hour then choose to do the upgrade to the 75 kilowatt-hour rate. So there's going be some number, but it's too early to tell, of people who buy the 60 kilowatt-hour, realize they want the extra range and then they can just order it kind of like an in-app purchase on the car screen and unlock it.
I suspect we'll see pretty decent number of people do that. But it's still very early, so it's hard to say what number that would be. And if they do do that, then it would push the gross margins up into the 20%s, like in the mid-20%s or so.
John J. Murphy - Bank of America Merrill Lynch
That's helpful. And then just, Jason, maybe two quick housekeeping questions. CapEx at $2.25 billion, you're running at a run rate that's less than half after the first half of the year. So just curious how realistic that number is for the full year because you guys have committed to it in the Shareholder Letter again. Then also the auto gross margin going up 200 basis points to 300 basis points off of what base? It's not clear what base that's coming off of. Just trying to understand the exit gross margin for the year you're expecting.
Jason S. Wheeler - Chief Financial Officer
Yes, sure. No problem. So I'm going to add just a little bit of color onto the 60 kilowatt-hour gross margin numbers, too. We're aspirational on this. But the way to think about this is very important. Those cars are gross margin positive and they're producing cash. So if you think about from an overall operating leverage perspective, even if the gross margin profile on those is less than our other variants, it's still producing contribution margin to pay for the fixed cost of the business. So I think it's the right economic thing to do. And even more importantly, it's right for the customer to continue to broaden the market that way.
