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The transcript details the 2023 Annual Shareholders Meeting of Tesla, with Robin Denholm highlighting the automaker's success due to the dedication of its leadership team, employees, and mission toward a sustainable energy economy. The meeting includes electing directors, approving executive compensation, and voting on proposals on key person risk reporting and child and forced labor in the supply chain. Elon Musk discusses advances in sustainability, full self-driving technology, affordability of EVs, and the challenges Tesla will face in the coming year. Musk also showcases Tesla's new developments, including the Cybertruck and Optimus robot. Musk encourages retail investors to vote and expresses confidence in Tesla's long-term value.
- 00:00:00 In this section of the transcript, Tesla's Vice President of Investor Relations introduces the 2023 annual shareholders meeting. He thanks the dedicated shareholders who have attended every year and welcomes first-time visitors to the fun-filled meeting. After the formal voting, Elon Musk will give a presentation about the previous year's achievements. Tesla's chair Robin denholm congratulates the Texas team on tripling their vehicle production and achieving record-breaking deliveries in 2022. She credits the company's success to the dedication of its exceptional global employees in furthering the mission to accelerate the world's transition to sustainable energy.
- 00:05:00 In this section, Robin Denholm, the chairwoman of Tesla, highlights the strength of their leadership team and dedicated employees worldwide in advancing Tesla's mission towards a sustainable energy economy. She shares how Tesla has been able to prove that electric vehicles can be better than gas-powered vehicles and be affordable with models such as the Model 3 and Model Y. Denholm also mentions Tesla's customers' positive impact on carbon emissions wherein, in 2022, over 13.4 million metric tons of greenhouse gases were avoided. Tesla's focus on capital investment plans to support future growth is also discussed, including investments in battery and vehicle production and expanding their charging network and sales and service footprint. Denholm expresses enthusiasm for JB Straubel to join the board.
- 00:10:00 In this section, the transcript outlines the agenda of the 2023 Annual Shareholders Meeting of Tesla. The meeting involves the election of Class 1 directors, the approval of executive compensation, the ratification of the appointment of PricewaterhouseCoopers LLP as Tesla's independent public registered accounting firm for the 2023 fiscal year, and the voting on two stockholder proposals. One of the proposals relates to the reporting of key person risk and is presented by Karen Roberts Dotier. The proposal requires Tesla's board to draft a report covering the steps taken to ameliorate the potential impacts of loss of key persons in the company. Before presenting the proposal, Roberts Dotier thanks Elon Musk for stepping into fields where change was needed, and praises Tesla's team for its successful execution at scale with low cost of goods sold.
- 00:15:00 In this section, two proposals are presented during the annual shareholders meeting. The first proposal, made by a shareholder, encourages the board to showcase the company's future development and management talent in order to focus discussions on the company's progress rather than on public statements made by leadership. The board, however, recommends that shareholders vote against this proposal. The second proposal, presented by a representative of investor advocates for social justice, calls on shareholders to vote yes on requesting Tesla to conduct a third-party report detailing the company's efforts to eradicate child and forced labor in its supply chain. The board recommends that shareholders vote against this proposal as well.
- 00:20:00 In this section of the transcript, the preliminary results of the annual shareholders meeting are announced, with all agenda items approved except for the recommendation by shareholders for a one-year non-binding advisory vote on executive compensation frequency. The addition of JB Straubel to the Tesla board is also announced. Forward-looking statements are made, with a discussion of the Tesla master plan part three and the path towards a sustainable global economy. Elon Musk emphasizes that it will take less energy to go sustainable and there will be less mining required for a sustainable energy economy.
- 00:25:00 In this section, Elon Musk emphasizes the importance of sustainability and child labor in their production of batteries. He mentions that they will do a third-party audit and put a webcam on the mine to ensure no child labor is being exploited. He also explains that the majority of their battery packs are iron or nickel-based, not cobalt, which is often exploited using child labor. Musk stresses the importance of increasing solar and wind power and the production of lithium-ion batteries. He notes that they need roughly 240 terawatt hours of battery packs to be produced, which will only take up 0.2 percent of land area for solar and wind. Musk estimates a $10 trillion investment in manufacturing and argues that it's a small price to pay for a sustainable energy future and emphasizes that electric cars absolutely win over gasoline vehicles in terms of emissions over time.
- 00:30:00 In this section, Elon Musk discusses Tesla's progress toward electric vehicles becoming cheaper than gasoline vehicles, as well as the company's positive impact on the environment and society. He notes that in 2022, Tesla reduced its manufacturing emissions and water usage despite a significant increase in output while also improving factory safety and creating jobs. In addition, Musk mentions that Tesla is introducing a next-gen Drive Unit and a 48-volt low-voltage car architecture that requires only a quarter as much copper as a 12-volt battery, which is a significant benefit. Finally, Musk highlights the growth of FSD beta, and audience members who have tried it share their experiences.
- 00:35:00 In this section, Elon Musk discusses the progress of Tesla's full self-driving technology and how it will be a major asset value increase in history. He mentions that he expects the final piece of the system, the planning and control function, to become a neural net, completing the end-to-end system. He emphasizes that full self-driving will be much safer and better than human driving, and it will be a big deal for Tesla. Musk also notes that Tesla is the largest EV maker in the world and the highest margin of any car maker in the world, making EVs profitably, while many competitors are making EVs at a significant loss. Finally, Musk talks about how interest rates affect the affordability of cars and how the vast majority of people buy cars based on the monthly payment, not a question of value for money.
- 00:40:00 In this section, Elon Musk discusses the challenges Tesla will face due to the global economic environment over the next 12 months. He predicts a difficult year for everyone but believes that Tesla will get through it and do well, putting the company in an extremely good position when the global economy turns around in roughly 12 months. Musk also gives credit to Tesla's internal software team and notes that the company's software is responsible for the entire customer experience, from buying the car to support and service. He praises Tesla's focus on vehicle safety, noting that the company continues to update safety features through software updates and analyzes accidents to improve safety in the future. Additionally, Musk predicts that the Model Y will be the number one best-selling car on Earth this year, a promising outlook for the company.
- 00:45:00 In this section, Elon Musk speaks about the automatic Cavern cabin overheat protection feature in Tesla, and how it ensures that the temperature in the cabin never reaches lethal levels. He also mentions that the European end cap rated Tesla's active safety system as the highest ever seen, with a 98 percent score. Musk also explains how Tesla's total cost of ownership of the Model 3 is now comparable to that of a Toyota Corolla, and how their supercharger uptime is now 99.95 percent, with superchargers practically everywhere. Additionally, he emphasizes how Tesla Mega Pack is a crucial solution to the sustainable energy problem and how Tesla's stationary battery pack business is growing faster than its automotive business. Lastly, he touches on how Tesla recently broke ground on their lithium refining factory in Corpus Christi, which will refine more lithium than everything outside of China.
- 00:50:00 In this section, Elon Musk discusses the progress made on the production of the Cybertruck, stating that it is a difficult car to manufacture due to its unique design. However, good progress has been made, and production will start later this year. Musk also confirms that there are two new products in development that use Head and Shoulders above anything else used in the industry, and he estimates that they will make in excess of five million units per year. Finally, Musk praises the work done by the Optimus team and showcases a video of the advancements made.
- 00:55:00 In this section of the shareholders meeting, Elon Musk discusses the development of the Optimus robot and its potential significance. He highlights that the motors, controllers, and electronics in the robot are designed by Tesla from scratch and that the same software used for full self-driving can be transferred to a humanoid robot. Musk predicts that the demand for Optimus could be vast, potentially exceeding the number of cars Tesla produces. He is confident that Tesla's long-term value will be in Optimus and encourages retail investors to vote.
In the 2023 Annual Shareholders Meeting, Elon Musk discusses a wide range of topics, including the potential for the Cybertruck to be turned into an RV and third-party companies developing attachments for the vehicle. Musk also addresses the possibility of Tesla advertising its features and functionality and achieving full self-driving as the primary focus while exploring revenue generation through customizable apps. Musk also provides updates on the next-gen Roadster, Tesla insurance, and the progress towards achieving full self-driving capability in Tesla vehicles. He emphasizes the importance of safety and expressed his gratitude towards investors for their support.
- 01:00:00 In this section, Elon Musk discusses the potential for the Cybertruck to be turned into an RV, as well as the company's plans to add attach points to the vehicle to allow for third-party companies to develop attachments that could enhance its capabilities. He also considers the idea of a Tesla team creating a podcast about Optimus, possibly as an addendum to the earnings call, and discusses the growth of the energy storage business. When asked how he's doing, Musk admits that it's a bit of a roller coaster but mentions his recent attendance at a party, which he says is a rare occurrence.
- 01:05:00 In this section, Elon Musk discusses the recent challenges at Twitter, including some major open-heart surgery to ensure the company's survival, but expresses optimism that the company is now in a stable place with Linda Yacorino as the new CEO. When asked about the possibility of Tesla stretching out financing terms to 10 years, Musk explains that the decision lies with the banks, not Tesla, as it does not have $100 billion in cash to finance sales. He warns that the next 12 months will be difficult, with tough times ahead due to a changing economy. However, he remains confident that Tesla will emerge stronger than ever and advises investors to focus on the long-term net present value of future cash flows.
- 01:10:00 In this section of the shareholders meeting, Elon Musk addresses the question of why Tesla doesn't advertise its amazing features and functionality. He admits that it's ironic because he has a company highly dependent on advertising, but Tesla never used it before. Musk agrees that Tesla should try advertising and acknowledges that while they have a lot of people following their Twitter accounts, it is just preaching to the choir. He believes that advertising these amazing features could be very effective, and Tesla should listen to shareholders' suggestions, so they will experiment with advertising. Additionally, he mentions that achieving full self-driving is currently the primary focus, but with the increasing importance of entertainment apps, Tesla will also explore the potential for revenue generation through customizable apps.
- 01:15:00 In this section, Elon Musk discusses the various ways to play in-car games in Tesla vehicles, including with a keyboard and mouse or a joystick or controller, as well as options to watch Netflix, YouTube, or other content. He also touches on the progress of full self-driving (FSD) software, stating that the primary goal is to reduce the probability of injury or death in accidents, which causes about a million fatalities and 10 million permanent injuries per year. He emphasizes that there's still a lot of work to be done even after achieving FSD capability to ensure that the probability of injury for a self-driving car is much lower than that of an average human driver. Lastly, he opines that the lithium supply constraint is mainly about the processing rate rather than mining, and that lithium is a very common element on Earth.
- 01:20:00 In this section, Elon Musk addressed questions about the production timeline and updates on the next-gen Roadster, which he hopes to complete the design and engineering for this year and start production next year. He also talked about the upcoming Tesla insurance, which will be rolled out in Florida later this year, but the process of getting it done across different states with varying regulations is quite challenging. Additionally, Musk mentioned the peak margin for automotive and energy, but he did not fully understand the question. Overall, Musk was grateful to shareholders for their support and expressed his commitment to making safe, fun, and sustainable vehicles.
- 01:25:00 In this section, Elon Musk discusses the potential of Tesla's autonomous vehicle technology, stating that the utility of a self-driving vehicle could increase fivefold, which would represent the largest asset value step change in the history of Earth. He also suggests that if Tesla can produce a battery cell with higher energy density and lower costs than anything else out there, there is a path to success, but noted that it’s a difficult path. Lastly, when asked about stepping down as CEO, Musk denies the rumors and reiterates his belief in Tesla's role in AI.
- 01:30:00 In this section, Elon Musk discusses the importance of overseeing the AI technology at Tesla and the company's advanced capabilities in the field. He also predicts the production rate for the Cybertruck, estimating around a quarter million a year, but notes the challenge of improving production cost efficiency. Musk also highlights the company's efforts in fostering talent for its factories by partnering with educational institutions, stating that it's in their interest to do so. Additionally, he talks about Optimus, the company's humanoid robot, and its current limitations in basic tasks, but remains optimistic about achieving its goal of doing simple and repetitive jobs that people don't want to do.
- 01:35:00 In this section, Elon Musk discusses the importance of safety and the need for a local means of turning off robots to ensure their safety. He also emphasizes that safety will always be extremely important, but the current level of intelligence in robots is not yet at a level where it's pondering questions like Mars. The CEO also answers questions about cybersecurity threats and navigation improvements, particularly in adding a picture of the off-ramp. Additionally, he declines a request to take a picture and talks about the difficulty of execution in bringing ideas to life, like going to the Moon. Lastly, Musk discusses the possibility of adding a guest mode for ride-sharing and track mode for Model X Plaid.
- 01:40:00 In this section, Elon Musk discusses the progress towards achieving full self-driving capability in Tesla vehicles, stating that he has personally driven for several days without experiencing any safety interventions, even in the complex city of San Francisco. He believes Tesla is getting close to achieving full self-driving capability, and despite past optimism, he feels that this time he can confidently say that it will happen. Musk also talks about Tesla's pricing strategy, revealing that prices are adjusted according to demand, and that even though other car makers also adjust pricing, it may not always be obvious to consumers. Finally, Musk mentions a term called the "wife test," which his own wife has passed in her use of Tesla's full self-driving feature.
- 01:45:00 In this section of the video, Elon Musk discusses the significant impact that full self-driving will have and compares it to the profound impact of electrification. He mentions that millions of cars on the road will achieve full self-driving with a software update, which will be a massive safety improvement. However, Elon Musk also explains that achieving full self-driving has been a challenging process due to the logarithmic curves involved in the development process. He anticipates that they will reach a high enough local maximum this year, allowing the technology to exceed human-level safety and become a significant change in history. Overall, he thanks investors for their support and reminds them of the importance of investing in Tesla during hard times.
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