Latest / Elon Musk Podcast / Elon Musk Tesla, Inc. 2022 Annual Meeting of Stockholders 8-4-2022

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Elon Musk Tesla, Inc. 2022 Annual Meeting of Stockholders 8-4-2022 · Elon Musk Podcast

0:00
Please welcome Elon Musk. Welcome.
0:37
Well, I feel welcome. So well, it's great to see
0:42
everyone here. Book hahaha So yeah, welcome to
0:58
the Giga, Texas. All right, so let's see.
1:11
I'll go over. Kind of recount the year.
1:13
It's been an amazing year. The Tesla team is stunning,
1:16
amazing work. And I've seen like one of the
1:20
things that I was like, what do you enjoy most in life.
1:22
I really being able to work with a super talented group of people
1:27
and to create great products and manufacture, those products, and
1:32
deliver them to people and make people happy from those.
1:35
Acts is that that's the one of the best things in life.
1:40
So so yeah. Just like to say what an honor
1:50
it is to work with such a talented team at Tesla and
1:53
that's the reason we've been able to do all these things.
1:56
So yeah, we're aiming to achieve a 2 million vehicle run rate by
2:03
the end of the year. This is the best crowd.
2:15
I mean. I love you guys, too.
2:49
So, anyway, thanks to the hard work of the Tessa team.
2:54
We've already been able to achieve one and a half million
2:57
unit annualized run rate, and depending on how the rest of us,
3:00
here goes, we, I think we might get close to or will get
3:03
approximately at the one and a half million Mark and and be
3:08
exiting the year at a 2 million unit run rate.
3:12
And and also worth noting just recently in the last few weeks,
3:17
we made our three millionth car. you know, the it's pretty wild
3:34
to think, like, a ten years ago, where things were, you know, 10
3:39
years, August 2012, weird weird made 2500 roadsters, and I think
3:50
maybe a couple of hundred Model, S's ish, but less than 3,000
3:58
cars. So ten years ago we made less
4:00
than 3,000 cars. And here we see and 10 years,
4:04
later having made over 3 million,
4:16
And actually, this is one of the cleanest exponentials.
4:19
I've it looks like one of those sort of, you know, business
4:26
plan, presentation things that that doesn't actually come true.
4:30
But you know, you see it in the Venture Capital business plan
4:34
situation but it's actually true.
4:37
That's the amazing part. And yeah.
4:49
Yeah. yeah, we're doing okay on demand, so Thank you.
5:04
So yeah, it's great here. I love California to be frank.
5:09
I'm going to be clear, you know? Oh, come on.
5:18
We got great teams in California and we got a great team and
5:23
China and Shanghai, and a great great team in Berlin, and
5:26
Germany and Europe. It's so and I thought it's
5:37
interesting to look at the the cumulative profitability since
5:40
Inception and at this approximately tracked at tracks
5:44
to sort of mental pain. Actually, this is psychic damage
5:59
that green curve is approximately correct.
6:03
But it's I'm just very proud of the fact that we've actually
6:07
been able to to produce more cash than we have spent and have
6:14
positive retained earnings and be worth our salt essentially.
6:18
And that's a really big deal. It's very hard.
6:21
So I mean, this is, this is, this is a big deal and I think
6:24
it's going to go up from here. So you see, we obviously had
6:45
some challenges there in 2017 and then but since then our free
6:50
cash flow generation has been been very good and trending
6:55
trending upwards. And and this is really, before
6:58
autonomy. Really kicks in.
7:00
We have a autonomy to some degree but solving autonomy is
7:11
will really be an amplification of free cash flow to degree.
7:17
That is you run the numbers and it's like, wow, can it really be
7:20
that crazy? But it could be that crazy.
7:24
And you know this Dusty are I swear?
7:38
We got to anyone here in the FSD beta program.
7:48
Sweet. Yeah, no, totally totally.
7:50
Totally okay, well, I thought I thought I thought you might ask
8:00
that so because it's 10.13. We've been working on for a
8:05
while. And, and actually, what sort of
8:09
happened is we've, we've made some pretty significant
8:12
architectural improvements, so it's really going to be more
8:16
than a 10.12 to 10.13 release. It might or speak to you soon.
8:22
It might qualify for 10.16. Nine.
8:26
The. It's got, its got to earn that
8:31
obviously can't just throw that out, you know, but it's that
8:38
there's a lot of a lot of improvements and especially in
8:44
complex left turns. And yeah, we were we're going to
8:50
solve Chuck Stone. Yes.
8:51
Yes, I'm sad. Absolutely, you know, we have a
9:00
lot of respect for valid criticism so and yeah.
9:05
So I think we're at roughly 90% success rate with, with your
9:11
turn, so we're almost at 100 so, so it's looking good.
9:18
And yeah, so I mean, I'm hopeful might might be a week.
9:24
Next week. So yeah, two weeks.
9:33
Yeah. It's working well for me.
9:44
So yeah, there are two teams like working, literally seven
9:48
days a week and making major improvements.
9:53
And it's really interesting because we're effectively
9:57
solving an important aspect of artificial intelligence.
10:00
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Ilan backblaze.com. He'll on AI for self-driving.
12:15
Which when you think about it, kind of, is what's needed to
12:19
solve the to solve self-driving, because how is the road system
12:23
designed? It's designed for a biological
12:26
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12:30
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12:35
silicon, neural net, and and so sort of sort of accident, where
12:41
actually, so, Having an important, I think very useful
12:44
element of artificial intelligence.
12:46
And I definitely want people out there.
12:51
You know, tons of people are working on AI to consider
12:54
working at Tesla because I think we're solving just a very
12:57
important part of AI and one that can ultimately save
13:00
millions of lives and prevent tens of millions of serious
13:04
injuries by right, driving, just an order of magnitude safer than
13:10
than people. I know these speed a time back
13:13
in the day where we'd have yeah, it's this is super important.
13:17
So they used to be a time when we'd have elevator operators and
13:26
it was normal to have elevator operators and have like a big
13:28
relay and stuff but you know every can't every now and again
13:31
you make a mistake and sure somebody in half so I'd be like
13:35
okay. Then we went to automated
13:37
elevators and you press a button, you go to your floor and
13:39
it just works and and that's kind of how it's going to be in
13:42
the future with cars and yeah. So And then we'll have lots of
13:53
interesting things to say on a idea at the end of next month.
13:56
I live. I'll leave that to next month
13:57
too. So, you know, when we started
14:02
out here, obviously, we were told we were told that electric
14:07
cars were impossible. And even if really, if you could
14:10
make, you know, an electric car with a couple hundred miles
14:14
range, then nobody would buy it anyway because they're people
14:16
just like gasoline cars. So, you know, when we started
14:21
out, it was, it was dumped dumped to start a car company
14:24
and then dumb squared to do an electric car company.
14:28
And we're told, you know, you're never going to make money Etc
14:31
and we didn't for a while. But now we have the highest
14:35
operating margin in the whole industry.
14:49
Exactly exactly. It says not just a car company.
14:53
Tesla has many companies in one and as much as a software
14:56
company as we are a hardware company.
14:58
So and that's that's really going to be essential for the
15:01
future and software, both in the car and obviously with neural
15:06
net training, but also software in the factory as well.
15:09
So you can think of the factory as a You know, giant cybernetic
15:15
Collective. So factories, just an enormous
15:18
cybernetic Collective of humans and machines and software.
15:22
And the better. The software is the better that
15:24
cybernetic Collective works. I don't think other organs think
15:29
like that, but it's, that's what it is.
15:36
So, you know, there's a lot of talk of competition among
15:40
electric vehicles but really it's the, the EVS are electric
15:45
vehicles, taking market share from gasoline cars.
15:50
So, The the protest standpoint, we obviously welcome this and
15:59
we're very excited to see that the big car companies are
16:04
embracing electric vehicles. If you were to rewrite rewind,
16:08
the press releases 25 years ago, that was not the case.
16:12
They were, you know, sent not saying nice things about
16:15
electric vehicles, 55 years ago. But now I believe almost every
16:20
major car company in the world. World has embraced lecture
16:24
electrification and agrees that it is the right path, and this
16:29
is really what we set out to do with Tesla, you know, was not to
16:33
like, you know, get maximum market share or anything.
16:36
It was really try to get the show the order industry that it
16:39
was possible to go electric. And that if you made compelling
16:43
electric cars, people would buy them and And that's, that's
16:48
what's happened. I think that's really profound.
16:50
So yeah. Also, when we're not competitors
17:01
advertise for electric vehicles. Every time they do that, our
17:03
sales go up, It's pretty funny. So yeah but we do we have open
17:15
sourced a lot patents. So they can use our patents for
17:17
free and so we're you know, helping out and I think it's
17:20
sort of a mutual Prosperity thing and it's good.
17:23
So Yeah, so model why you don't want your definitely don't count
17:32
your chickens until they're hatched but I think we're
17:35
tracking to have model. Y be the highest selling vehicle
17:41
by Revenue this year and the highest by unit volume next
17:45
year. Still a lot of work to do like
17:59
these factories don't just magically work.
18:04
So it's a lot of work to do Berlin and and here in Austin to
18:10
surprise spool up these two big factories, and we've got
18:14
different Supply chains. And so it's always, there's a
18:17
host of problems. None of the problems are
18:20
individually, all that difficult, but there's like
18:22
10,000 of them. So it's the rate of Auction is
18:25
like, how fast can you solve the 10,000 problems?
18:28
Essentially? And we're solving pretty fast,
18:31
but a lot of work to do and we might be able to announce
18:38
another Factory location later this year.
18:58
Wait, wait, wait, wait. We're should we okay wish to
19:02
rebuild it? Okay, we got to get a lot of
19:15
Canada's. Go, I'm half, I'm half Canadian,
19:21
so maybe I should, you know, but yeah, well I think what, you
19:26
know, ultimately, we will end up building.
19:28
I don't know, probably at least 10 or 12 10 or 12 kg factories
19:34
and they will, they will be really eager factories, like
19:36
output. You know, Amy for output,
19:39
average output of like one and a half to two million units or
19:42
factory which is enormous the And the Fremont Factory in
19:52
California is already the highest output Factory North
19:56
America. So sorry.
20:07
Well, I think we'll have a friendly competition between
20:12
Texas. California Berlin.
20:15
Shanghai's hard to be. That's a shy guy.
20:18
Is a pretty at Shanghai. Team is just awesome so that
20:23
their, yeah, great, great Tina. So with respect to, you know,
20:32
sometimes we get this sort of, you know, these bogus attacks of
20:35
like Evie is or somehow worse than Gasoline, cars, which is
20:39
not true, the average life cycle emissions of an EVO dramatically
20:43
lower than that, of a gasoline car.
20:44
And I kind of telling you things, you already know, but,
20:48
you know, I've been riding, you think surely, this nonsense has
20:50
been put to bed, but it, it pops up again.
20:53
But it's obviously an electric cars.
20:55
Is dramatically lower CO2, or lifetime than anything than a
20:59
than a gasoline car. So Eric that's kind of obvious.
21:04
Now this this is a thing that I think is super cool.
21:07
If you add up all the energy produced over the last 10 years
21:10
by Tesla solar panels, it is more energy than was used to
21:17
manufacture all of our cars and charge all of our cars at
21:22
superchargers and at home. this is, And I mean the the mission
21:38
of Tesla is to accelerate sustainability.
21:40
And the I think this this is really amazing, you know, more
21:46
energy produced than was used in making the car or and charging
21:50
them all over billions of miles. So and we're going to keep
21:54
obviously increasing our solar activity and and vehicles and I
22:00
try to keep these on par because the three elements of a
22:04
sustainable energy future. ER, sustainable energy
22:07
production primarily with solar and wind and then stationary
22:11
battery packs to store the the sustainable energy because of
22:16
its wind and solar are intermittent, intermittent, and
22:19
then electric transport. And if you have those three
22:22
pillars, you have a fully sustainable future.
22:26
And yeah. So that's its yeah.
22:35
And battery packs are various recite recyclable.
22:40
They are there. You can think of it, like, high
22:42
grade or do you want to, you know, crunch up a bunch of rocks
22:47
or crunch up a battery pack, which is like, super high-grade
22:49
ore. So it's a no-brainer to recycle
22:52
battery packs and we are already recycling.
22:56
I should point. This is, of course, those people
22:58
wonder what's happening. We're already recycling at over
23:01
50 a week in Nevada. So So Tesla battery recycling is
23:07
already underway. Has been underway and is scaling
23:10
up now. Cars are lasting quite a long
23:12
time. So there's not that many
23:14
batteries to actually recycle because you kind of have to
23:17
typically wait like 12 years or something like quite a long time
23:20
before the battery actually is no longer useful sometimes 15
23:26
years. So recycling starts off small
23:29
but then it becomes very significant long-term so, It's
23:41
about some Factory footage, obviously.
23:46
I just 50 packs a week. Yeah so yeah there's nothing
23:55
like this. The actually just not that many
23:57
packs to recycle because there's not but the vast majority of
24:01
them are still in use. All right.
24:11
Oh, yes, exactly. That's what I'm doing.
24:13
Where is that thing? So some investment 3 is going to
24:21
be fundamentally about scaling just looking at the overall
24:26
problem from a global macro economic standpoint and saying
24:33
what what are all the things that are needed to achieve?
24:37
A fully sustainable economy, because I think a lot of people
24:40
don't I don't know, and really like what tonnage of lithium of
24:51
cathode, anode, separator, electrolyte, like Electronics.
24:57
What are all the things that are needed, that little things that
25:00
need to be done in order to transition to a fully
25:04
sustainable global economy, which I think, you know, the
25:07
sooner we do that the better for the planet.
25:10
And I think just articulating that, and, and just making it
25:14
clear that this is absolutely doable and it is being done.
25:19
And we just wanted to be done as fast as possible because I think
25:23
a lot of times I mean I meet a lot of people out there who have
25:28
lost hope. No, they think they think it's
25:31
too late and they think there's no chance and the Earth is
25:35
doomed is like it's not doomed. Okay, it's yeah.
25:52
Yeah, Earth can and will be saved.
25:58
Yeah. So in addition to battery
26:09
advancements and electronics, advancements in AI, we've also
26:14
done a lot to simplify the structure of cars to make it
26:17
easier to manufacture. And one of the things we've done
26:20
is create the largest castings that have ever been done and
26:25
they're very complex castings and so we're able to take 171
26:29
pieces of metal and from 171 pieces 22.
26:34
And in the process, make it lighter stiffer with better,
26:39
right? Handling?
26:40
Better noise vibration and harshness better sealing against
26:44
water. So it's really better in every
26:47
way. And yeah.
26:57
So and we're going to keep enhancing the the casting.
27:01
So this is a testament to our materials team and to our like
27:06
casting technology. So we really rethinking the
27:09
whole way in which a car is made and it's a yeah it's a gigantic
27:14
Improvement. We have this point from going
27:20
from Save Model S or even model 3, weird about 30% of the row.
27:27
Robots used for model 3 or a current model y.
27:31
So yeah. We've also improve the layout of
27:42
the factory. So the factory is sort of a sort
27:44
of a single model, close to a single monolithic factory with a
27:48
very straight forward flow Fremont, we do a lot in Fremont
27:53
with the flow is complex and it's not an easy flow.
27:58
So we really rethinking the factory and I think if the like
28:04
the really long-term sustainable advantage of Tesla will be
28:07
Manufacturing. Entered this before.
28:10
But obviously everyone will have electric cars.
28:13
All manufacturers of have electric cars and eventually it
28:20
took longer than they think, but eventually all cars will be
28:23
self-driving and the thing that would be hardest to replicate is
28:29
Tesla's manufacturing technology.
28:32
So this is actually very important for long-term
28:35
standpoint. When thinking about the
28:48
competitiveness of Kemp companies, especially if the
28:52
companies are technology companies.
28:56
I recommend looking at where the smartest Engineers want to work.
29:02
This is where ever, the smartest Engineers want to work.
29:06
That's going to be that, that technology company is going to
29:10
be the one that is likely to succeed.
29:14
Just like it's a pro sports team where the ace players going,
29:17
okay, probably that team will win.
29:20
So we put a lot of effort into ensuring that the best engineers
29:23
in the world. Want to work at a Tesla and
29:26
frankly, sometimes, Tesla tells number one, sometimes be a
29:28
second one. But those are just like last
29:31
year, but and we do actually for those curious and maybe want to
29:37
work at either SpaceX or Tesla, we do allow people to move from
29:41
one company to the other. If they would like Like so if
29:44
you want to spend a bit of time working on electric vehicles,
29:46
but I'm spinning working on Rockets, you can, that's cool,
29:50
we support that. So yeah.
29:59
I've also made a lot of improvement with Factory safety.
30:02
So, we, I think we, we believe we now have the best Factory
30:06
safety in the industry. And so we're yeah, we're excited
30:12
to have you. Very good safety and getting
30:17
better. So, And a bunch of this is
30:26
driven by just encouraging people with the factory to
30:29
submit ideas for safety Improvement.
30:32
And we've passed our goal of three suggestions per employee
30:38
and this year and this is really is a game changer for improving
30:42
safety. So and yeah. don't, you don't
30:51
have to cop after every slide unless you really want to, but
31:00
So we there's a lot of interest in working at Ellsworth 3
31:02
million job applications last year.
31:05
So Yeah, it's true. So a lot of interest in working
31:13
at Tesla. Now some people may occasionally
31:17
encountered a supercharger that didn't work, but in general the
31:22
uptime of our superchargers is extremely good and we just try
31:26
to make it super smooth and the because our superchargers are
31:30
always connected, like the car is always connected.
31:33
Our feedback loop for fixing a supercharger is very quick.
31:37
And obviously we keep upgrading the The supercharger capability.
31:40
We're now at version 3 will start rolling out version for.
31:44
I don't know maybe next year, so they're just the superchargers,
31:48
get better and better, and You know, you notice the yeah
31:54
actually I don't give away that. Let's just say that this there's
32:00
some there's some cool stuff happening on the supercharging
32:02
front. So Alaska.
32:09
Yes. All right, we're basically
32:17
doubling our supercharged account every year.
32:18
So if this isn't a supercharger in some place that you think is
32:22
important, it probably will be there soon.
32:25
So, We've also made a lot of progress on safety.
32:31
So our cars already, the safest in the industry.
32:35
So we have a lowest probability of injury of any cars ever
32:38
tested by the US government and we update this in real time.
32:43
So we because our cause are connected, this is a big
32:47
difference. All the other cars with rare
32:50
exception are not connected so that so the manufacturers don't
32:54
really know what happened in a crash, but in the case of Tesla,
32:57
we are able to look at crashes and see, how can we improve the
33:02
safety and look at the crashes, improve their the crash
33:08
structure. Also, we improve how the seat
33:13
belts tension and how the airbags deploy.
33:16
So it in these updates, if we figure out oh there's a slightly
33:19
better way to deploy the airbags to improve the safety in a
33:23
crash. Well actually do an over the air
33:25
update to improve the way that the Airbags deploy or the way
33:28
that the seatbelt pretensioners. And we're now starting to
33:32
include our Tesla autopilot AI to be able to see if a crash is
33:40
about to occur. And if it, if it sees that a
33:43
crashes about to occur with 99 plus percent probability, then
33:48
it will activate the seatbelt pretensioners, and deploy, the
33:51
airbags as opposed to what the vast majority of cars do is the,
33:56
they only The rest are our cars are only able to deploy airbags
34:00
when the crash is happening. And so that's that makes the
34:04
airbag deployment a lot, more violent, but if you can
34:07
anticipate the crash, the airbag deployment can be much better
34:11
than than just impact. So We'll see FST beta grow, very
34:28
rapidly, and this, this is definitely going to go very
34:32
exponential in miles driven. So we're now at over 40 million
34:37
miles and I suspect by this year, we will be on our way.
34:43
Well over 100 million miles so and we're still tracking very
34:47
much to have a wide widespread deployment of FST beta this year
34:54
in North America. So I'm happy.
35:02
I should say, if basically FST beta will be available to anyone
35:06
who requests it by the end of this year.
35:09
So, So AI de part 2, I think people blown away, but that's
35:25
the end of next month. So believe that if you accept,
35:28
its there's gonna be a lot of cool stuff.
35:30
So, The I'm sort of surprised that, you know, people or tastes
35:40
like analysts out there are not really understanding the
35:42
importance of the Optimus robot. My guess is Optimus will be more
35:50
valuable than the car that than long term.
35:57
And in fact, it will, I think turn the whole notion of what's
35:59
an economy on its head is the point at which you have no
36:06
shortage of Labor. You know, economy's GDP per
36:10
capita, if you do not have a capital constraint, then economy
36:14
just is, can be arbitrarily huge.
36:18
So, Now this it's sort of crazy right at thank you for voting.
36:27
So your vote matters and it's great to have direct contact
36:31
with individual shareholders, and thank you for voting to
36:36
support our proposals. So next, the next decade, I
36:58
wonder how many cars will have in 10 years.
37:03
It 10 years ago we had listened 3,000 cars now, we've made three
37:06
million. 300 million. I say 100 Millions pretty
37:21
doable. The I'll be surprised if it's
37:28
obvious prize, if it's not over a hundred million in 10 years
37:32
and then many other products, some of which you've heard about
37:36
some of, which you have not, so, Yep, let it out.
37:49
All right, so we've got some questions from the internet that
37:54
were voted to the top. So I'll answer these questions
37:57
and then we'll take just quite questions from the audience.
38:01
And so one of the questions is how does Tesla intend to utilize
38:04
cash in the, in the coming years will we increase catfish capex,
38:09
Augustine read the question. The share BuyBacks dividends
38:12
were acquisitions Well interesting, like Tesla has
38:16
actually done very few Acquisitions apart from the
38:19
SolarCity acquisition was the only really big acquisition we
38:22
did and the next largest would be Tesla grohmann but it's test
38:28
is actually used a remarkably small amount of its Equity to do
38:31
Acquisitions compared to other companies.
38:34
The vast majority of our growth, basically 90% of our growth has
38:38
been organic which I think is actually a really good thing.
38:44
But if we do see interesting companies we we will acquire
38:49
them but our it is quite rare for us to acquire a company. but
38:55
we are interested in companies that are very good at
38:57
manufacturing automation software, AI May factoring
39:04
technology in general, that kind of thing, we certainly will
39:09
increase capex and we're actually spending caps spending
39:15
cap, ex money and R&D money as fast as we can do so without
39:20
wasting it. So this is not a constraint if
39:24
we try to spend it any faster, we're just be wasting money so
39:28
we're cranking hard on capex and R&D Depending on what our future
39:37
cash flow looks like, think a sort of share buyback is
39:42
possible. I don't want to commit to that
39:44
but well you know let's just make sure you know that there's
39:50
not some force majeure event somewhere.
39:55
You know I think we want to make sure we have plenty of capital
39:59
that and that future cash flow is looking very solid and the
40:03
world is relatively stable. And then I think share about
40:06
buyback is is on the table. Yeah.
40:17
So how many factories are necessary to achieve 20 million
40:19
vehicles? I think probably roughly a
40:22
dozen. So we're aiming for one and a
40:28
half to two million units per Factory.
40:31
Now our Factory in California we're just running out of room
40:34
so it's it's hard to get more than maybe 700 or 800 700 800
40:41
thousand Vehicles a year out of their butt.
40:47
Most places will be aiming for one and a half to two.
40:50
So, it doesn't site, although we are aiming for giant monolithic
41:00
buildings. With Savage Talk pricing, it was
41:11
unveiled in 2019 and the and the reservation was $99.
41:16
So you know, things of a lot has changed since then.
41:22
So so the specs and the pricing will be different.
41:27
I, you know, I just sort of give a little bit of bad news but I
41:30
think there's no way to sort of have haven't anticipated.
41:34
Quite the inflation that we've seen and the The various issues.
41:39
But what I can say is that the Cyber truck will be one hell of
41:41
a product, and it's going to be like a damn fine machine.
41:45
So, And we are tracking to be in production middle of next year
41:58
from this Factory. So we're installing we're going
42:01
to be installing the production equipment to Lionel starting in
42:06
the next couple months will begin the installation.
42:09
So aiming to be involved in production middle of next year.
42:12
So, Now, what could possibly go wrong in answering this
42:21
question? Oh man. all right, so I should
42:46
just fast. Well, let me just say that, you
42:53
know, I hope for peace and respect.
43:12
Fair enough? Yeah.
43:25
Yeah, good advice. So we're trying to, we're
43:34
deploying supercharges wherever we see the greatest need.
43:38
Sometimes the greatest need is in some place that is extremely
43:42
difficult to get permits like the Getting a permit in Malibu
43:49
was nuts, like next-level that took years and so some places
43:57
are hard to get permits and some places are easier but we are
44:02
aiming to just generally we analyze the supercharger usage
44:07
every day and we prioritize supercharger locations according
44:11
to where we see the greatest need with respect.
44:16
Sorry way. Well, you know, maybe we should
44:19
do an online Poll for where is it?
44:21
Where should we put superchargers?
44:28
Yeah, that's good. I okay we'll do that.
44:31
So I mean with respect to amenities with supercharges I
44:36
think we'll do a couple of just fun fun things like we're going
44:41
to do a really fun supercharger location in Allah and the
44:45
General Vision is to have something that's like a
44:47
futuristic kind of like Diner. Sort of like I don't know Blade
44:55
Runner meets grease meets Jetson.
44:58
Yeah, you know, something cool different and but with some
45:02
style and we're, you can, you know, get you know, some great
45:07
food and one in l.a. we're planning to have like these big
45:11
screens at The Supercharged location and the screens will be
45:16
aiming to share like the 100 100 greatest movie clips of all
45:20
time. And so you can like, you know,
45:22
have a cheeseburger and a charge, your car and watch some
45:27
cool. Cool stuff on the screen and
45:31
it'll be open to others who are not, you know, you can come to
45:33
the restaurant, if even if you don't own a Tesla, but it'll be
45:36
like a, like a little gem, I think they're in LA.
45:39
And, and then, depending on how that goes will, you know, we
45:43
went roll that out to a few other places.
45:45
We will try to interesting fun things that are not necessarily
45:49
economically sensible but they're cool.
45:59
So 4680, the this is a this is not an easy one to answer.
46:09
We are making a decent number every week.
46:15
And I think we will be in high volume production by the end of
46:21
this year, it's always difficult to predict.
46:24
This is because a lot of new technology, what's the slope of
46:26
the s-curve on-ramp and accept that?
46:30
I'm confident, we will get to the, you know, the high
46:33
production rate but it's probably end of this year before
46:37
we get confidently to a high production rate.
46:41
But this does not affect our vehicle output.
46:43
We actually have Have enough Supply from enough battery cell
46:50
Supply, from suppliers to make one and a half million cars this
46:54
year. So it's not a constraint on
46:56
output it but it is it will be important for next year.
47:03
And new master plan is not yet ready.
47:08
I don't know. Maybe aim to get it done this
47:10
month but like I said, it's going to be just looking at the
47:14
big picture, what does it take to make earth fully
47:17
self-sustaining from an energy standpoint?
47:21
And yeah, just map it out and say this is this is what needs
47:26
to be done. Tesla will try to be as useful
47:29
as possible in this regard. And hopefully, lots of other
47:32
companies can join in and, and help accelerate the sustainable
47:35
energy Revolution. With Peak inflation behind us.
47:49
So the inflation question is interesting because we do get a
47:53
fair bit of insight into where prices of things are going over
47:58
time because when you're making millions of cars, you have to
48:06
purchase Commodities many months in advance of when they're
48:11
needed like you. So, you need to tell you because
48:13
it's a very long supply chain. With a tremendous amount of
48:16
inertia. So we sort of have some insight
48:19
into where prices are headed over time.
48:23
And the interesting thing that we're seeing now is that most of
48:29
our Commodities. Most of the things that go into
48:31
a Tesla, not oil, but I don't know more than half the prices
48:35
are trending down in six months or six months from now, this
48:39
could change obviously. But but the trend is down, which
48:42
suggests that we are. Past Peak inflation.
48:48
Now, making macroeconomic prognostications is a recipe for
48:54
disaster but my guess is that we're past Peak inflation and
49:03
that we will see We will have a recession.
49:08
I think it will be a relatively mild recession sort of the I'm
49:13
just guessing here. This is total speculation but I
49:18
would guess it's a it's a You know, mild recession for 18
49:24
months or something like that. It would be my best.
49:27
Guess right now, we don't have fundamental capital
49:32
misallocations in the, in the us as we have had in the past like
49:37
a leading up to 2008, where we were building primary housing
49:40
units at twice, the rate of of household formation which
49:44
obviously doesn't make sense. And there were a lot of
49:48
companies that were over levered.
49:50
And the The Leverage or debt, that companies have right now is
49:54
relatively low. so, yeah, I would say probably a mild
50:01
moderate recession, maybe 18 months which and And I think we
50:10
think inflation is going to drop rapidly.
50:12
That's my guess. I don't know what you guys
50:15
think. But it's not sound about right?
50:20
Okay, great. All right.
50:26
Yeah, the Tesla robot essentially changing the
50:28
economy. Like we based on economy on
50:31
automation, AI with the full self-driving that's being
50:34
implemented. You're going to have a full
50:36
Fleet of vehicles that can drive themselves.
50:37
You'll have these robots that can go and get into your vehicle
50:40
and place things will you be moving to a rental model or how
50:45
will you base a Tesla Model on selling cars?
50:48
Whenever these cars are fully automated can drive wherever
50:51
they would like and hopefully would be applicable to having
50:54
multiple people used. A vehicle instead of just one
50:56
person. yeah, so it's interesting to think about, I
51:03
Don't Wanna Miss car because when you drive around Look at
51:07
you. Look at how many cars are parked
51:09
like they're just parking lots full of cars everywhere because
51:13
cars need a driver. And so most of the time they're
51:16
doing nothing typically a passenger cars going to be like
51:21
12 hours a week or something like that or of usage.
51:26
Absolute autonomous, maybe it can get to 50 or 60 hours of
51:30
usage. And that sort of, you know, four
51:33
or five time for four or five fold Improvement in the utility
51:38
of a car. But the interesting thing is
51:42
that the car still cost the same.
51:44
So in that scenario, at least for some period of time.
51:50
The the effect of gross margin on autonomous car is kind of
51:56
boggles the Mind. so in terms of how the cause will be operated,
52:05
I mean I think it would be you know, just you have the option
52:11
of owning a car Using a car just occasionally, when you need it
52:17
like an auto Uber or something like that, and there would be
52:22
people and then an owner of a car could decide that they want
52:26
to use their car or they want to add or subtract it to the fleet.
52:30
So I think it would end up being some kind of combination of like
52:34
Airbnb and Uber or something like that, you know.
52:37
So sometimes, you know, you can go all the way from owning it to
52:41
rent a cat sometimes to renting it a lot to completely renting,
52:48
But the, but the utility of the car will just be mind-blowing
52:52
Lee great and then likes it off to.
52:55
This will will really bring the future to now so, yeah, maybe
53:08
Maybe, maybe you could rent Optimus out early.
53:18
I mean, assuming we get all these things, we do all these
53:21
things. I think, probably tells it will
53:23
be the most valuable company in the world you don't.
53:35
Hi, we all know how the media treats you so well, yeah.
53:39
So I don't have a question for you today.
53:42
I just want to say on behalf of my six-year-old at home, Kyler
53:45
Scott that's watching right now. Who thinks Is your awesome as
53:48
well. Thank you for making the world a
53:51
better place. Love you guys.
54:26
I mean, just like to say thank you for helping make it happen.
54:30
Because with without without the, without you, without the
54:34
early adopters of electric vehicles and sort of full
54:37
self-driving, Tesla would not be where it is today.
54:40
So, thank you for your support. What a presentation.
54:49
Thank you, Tesla team. It's an honor to be a
54:51
stockholder. Illinois.
54:52
I brought you the final checkpoint for SpaceX and
54:55
mini-moon, maybe little legs can play with it.
54:57
My name is David guajardo, my former Brownsville resident.
55:00
My first suggestion is to add a new string mode option, where
55:04
the driver can select Lacey mode and have the software
55:07
accommodate between Comfort standard and Sport modes.
55:11
Depending on the speed, the car is going.
55:13
This will increase handling and safety second Wendy.
55:17
This engaging autopilot with the wheel, the accelerator stays on,
55:22
please fix it last 10 weeks ago, talking to mr.
55:26
Sampat tell at Starbase I told him that the team, she'll add a
55:30
tab in the SpaceX website and disclose what type of skills and
55:34
preparation are going to be needed from us to accomplish The
55:38
Greatest Adventure ever ever in human history.
55:42
Going to Mars. All right well but thanks for
55:46
the suggestions. Those those are good
55:47
suggestions, thank you. All right hi so I do actually
55:53
have a question but one thing they want to okay?
55:58
That's cos like people ask you all the questions what do you
56:02
think people miss and should be excited way more about and what
56:07
do you think? People are threatened the way
56:09
too much about and shouldn't be worried at all.
56:14
Yeah that's actually it's good point.
56:17
You know I think actually the the questions and ideas posed by
56:26
retail investors like small retail investors like I think
56:28
many of you in the audience are actually the most insightful and
56:33
it's I find it remarkable that get a essentially amateur or
56:38
like normal everyday. People actually understand Tesla
56:42
better than the analysts. I mean, I must you must see
56:44
this. it's like, that's like And I mean think like, you know
56:54
really say like what like what's the what's the, what's the point
56:56
of a company is the point of a company is to create useful
56:59
products, and services, you know, company is not should not
57:02
exist in and of itself. It's exists.
57:04
It's a group of people gathered together to make products and
57:09
services. And if those products and
57:10
services are great, it's a valuable and useful company.
57:13
And if they're not, it's not. And so really to understand a
57:17
company you must use its products.
57:19
And if you think the products are great, then it's well.
57:22
Companies. Great.
57:22
That's it. That's how it is.
57:25
And so I think ironically a lot of the people that left us or
57:29
professional analysts don't drive Tesla's so like well okay
57:33
you know maybe we should yeah cool.
57:38
I mean I mean we aim to make Tesla most amount of fun you can
57:42
have in a car, you know? So Yeah, so let's see.
57:49
So I think that there are a lot of really good and it's a flight
57:53
is that that I see on the internet on Twitter and whatnot
57:58
and oh yeah, Twitter. so, Yeah, so let's see.
58:20
I think sometimes people fret a bit too much about short term
58:23
things that which you're clearly just, you know, just bumps in
58:28
the road type of thing where there might be a supplier
58:32
shortage or a, you know, some shut down and some part of the
58:36
world. But but really those things are,
58:41
you know, are clearly just kind of one-off items and don't
58:44
really matter for the long term. The, the sort of, you know, the
58:52
trend if you like looking at the sort of cumulative, output and
58:56
cumulative miles driven, and you can see that that cumulative
59:01
output is a very clean exponential and it's so, you
59:07
know, so I guess sometimes people Fred a little bit too
59:10
much about this quarter or that quarter but you know, if you're
59:14
a shareholder in a company is really like the net present
59:16
value of future cash. Flows.
59:18
And so, what is it? You know, 1/4 is not really a
59:21
big deal. I think if you see people
59:25
panicking then instead of just saying, oh man, my stock has
59:30
gone down. There's a buying opportunity.
59:41
Hi ylan, thanks for the meeting. I became a marine because I want
59:44
to help protect your future base on Mars.
59:47
My friends and I are trained and where we support the mission.
59:50
Would you be open to this idea? Yeah, Space Marines, absolutely.
1:00:05
Are you on a lot of tests products today?
1:00:07
Focus on electrical energy for sustainable future?
1:00:11
Do you foresee Tesla? Perhaps exploring thermal energy
1:00:16
sustainable products other than HVAC like say, for example in
1:00:20
this gigafactory taking the residual heat from the gig
1:00:23
oppresses and applying them to see the drying up inside your
1:00:25
paint line. Yeah I think get it getting dual
1:00:33
use of like if you use electricity to do something and
1:00:36
then it generates heat and then you transporting that heat
1:00:38
elsewhere or the factory. It's probably a good idea to do
1:00:42
that. Actually it is a sort of say a
1:00:46
future optimization but but it is probably something with
1:00:49
during the factory and it is something we do in the car.
1:00:51
So in the car we carefully manage the the electrical and
1:00:55
the thermal energy And so, like, one of the ways that we achieve
1:01:01
long range in cold weather, is by both charging the pack and
1:01:05
heating the pack. And then the pack acts as a both
1:01:08
an electrical and a thermal Reservoir to achieve long range
1:01:12
even in very cold climates. And so, we're constantly within
1:01:16
the car, shuttling heat back and forth between motor driver
1:01:20
motor, Power Electronics, pack, and the cabin volume.
1:01:24
So that same concept should be applied to to factory, I agree.
1:01:29
Yeah, Ilan was and my name is Justin.
1:01:37
Some know me as SMD capital and Twitter, I've had the number one
1:01:42
voted question. Last earnings about scaling to
1:01:45
extreme size. I have another big question.
1:01:48
I think a lot of people would want to know in regards to when
1:01:52
would Tesla launched their first.
1:01:54
Pilot City for the Tesla Network, the robo taxi business.
1:02:04
Well, you see, I think it's actually going to be probably
1:02:08
much more widespread than that because Tesla's is developing a
1:02:12
general solution for self-driving and it's not really
1:02:16
specific to one city or location.
1:02:19
Now, there's different regulatory requirements in
1:02:23
various cities and states. So some locations will offer a
1:02:28
regulatory approval sooner than others.
1:02:30
But but we are aiming for a general solution, and In fact,
1:02:39
if if you, if you created a sort of a a randomly generated
1:02:45
alternate Earth, our system would still work, like
1:02:48
literally, you know, like you had some sort of
1:02:50
computer-generated Earth that but you know it made roughly the
1:02:54
same rules. As current Earth system is
1:02:58
sufficiently generalized. That it would work in a
1:03:02
computer-generated ultimate Earth.
1:03:07
So yeah. Right.
1:03:23
So I'm Gary black managing partner, the future fund Tesla's
1:03:27
our largest position by the thing we worry about most.
1:03:30
It's not not PR, but it's it's succession.
1:03:36
So, you know, key man risk is a big thing.
1:03:39
How does the board think about your succession and especially
1:03:43
when you have, you know, a judge is going to decide in a couple
1:03:47
months whether or not you have to take over Twitter, how would
1:03:50
you split your time? Well, I think Tesla's definitely
1:03:58
Gathering a lot of momentum and we have a very exciting product
1:04:03
roadmap that will last a long time.
1:04:09
So now if the execution against that roadmap is is difficult
1:04:13
because these are not simple products.
1:04:15
They're not copies of what anyone else is doing their new
1:04:17
things. So, but I intend to Stay with
1:04:23
Tesla as long as I can be useful.
1:04:26
And not can be most useful. I think on the product design
1:04:32
and Manufacturing for. So basically Factory design
1:04:36
Product design and sort of manufacturing optimization, so.
1:04:46
And we do have a very talented team here.
1:04:48
So I think, I think Tesla would continue to do very well even if
1:04:53
I was kidnapped by aliens, Oh well, went back to my home
1:05:00
planet. Maybe.
1:05:07
But so, yeah, but now I think it's a good question and I to be
1:05:12
frank I don't have us an easy answer open to ideas that you
1:05:19
know, I'm definitely working as hard as I can.
1:05:21
And I'm very excited about the future of the company and I
1:05:26
think it's got its got a very bright, very bright future even
1:05:30
without me. So I'm not leaving so to be
1:05:35
clear. You know, I obviously have to be
1:05:46
a little careful about what I say with about Twitter because
1:05:49
you know, this is like lawsuit and stuff.
1:05:53
So sometimes people get bent out of shape.
1:05:58
But I do use Twitter a lot, so it's not like, I'm like randomly
1:06:03
going around wanting to acquire companies or something.
1:06:06
I'm not like a hedge fund, I'm not a hedge fund, your private
1:06:09
Equity Firm or something. So, in fact, the only two
1:06:14
publicly traded Securities I own or Tesla and Twitter, that's it.
1:06:17
So and I think, in the case of Twitter, since I use it a lot,
1:06:25
Shoot myself in the foot a lot, you know, dig my grave cetera,
1:06:31
but you know, I think it's, I do understand the product quite
1:06:36
well. So I think I've got a good sense
1:06:39
of where where to point the engineering team with a Twitter
1:06:44
to make it radically better. And I do, I do sort of have a,
1:06:52
will is a grander vision. For what I thought, x.com, or X
1:07:00
Corporation could have been back in the day.
1:07:05
It's a pretty pretty Grand Vision.
1:07:07
And obviously, that could be started from scratch or but I
1:07:12
think Twitter would help accelerate that by 3 to 5 years,
1:07:18
So, it's kind of like something I thought would be quite useful.
1:07:24
For a long time. I know what to do.
1:07:28
Don't don't have to have Twitter for that but it would.
1:07:31
It's like I said it's probably at least a three-year accelerant
1:07:36
and I think it's something that will be very useful to the world
1:07:46
How's it going Neal on? My name is Ronnie and with the
1:07:50
projected release of the robo taxi coming in the years ahead,
1:07:54
would it be looked at as a the boring company?
1:07:58
Would it be used to get regulation for full self
1:08:00
driving? And would it be a good venue for
1:08:03
the robo taxi? Also, my little brother.
1:08:05
Zane says hi owns. All Tessa Hot Wheels.
1:08:08
Okay, cool by, say hi to him back.
1:08:12
So yeah, boring company is Making good progress actually.
1:08:20
And you know for the longest time people like I give a talk
1:08:22
somewhere and people say what opportunities you know about I
1:08:25
was like tunnels and they were like 45 years.
1:08:29
I said if somebody could just do a tunnelling company, we can
1:08:33
solve traffic and we can have also very high-speed transport
1:08:37
between cities because while I'm a fan of trains I like
1:08:41
high-speed trains. They do they do intersect the
1:08:44
you know go through towns and neighborhoods and And chop
1:08:47
people's property in half and they're very loud so, but I want
1:08:51
to be clear. I'm Pro train, some of the train
1:08:53
people, you know, I take every opportunity to drive to go an
1:08:58
interesting trains. So but the but the, but if you
1:09:03
have a sort of a much simplified version of the hyperloop, it's
1:09:08
really just Tesla's in a tunnel. That's depressurized.
1:09:11
You can go between cities super fast and without disrupting, The
1:09:17
stuff above ground. So that's kind of the vision for
1:09:21
the boring company is to make make roads 3D and have sort of
1:09:29
an arbitrary, an arbitrary number of layers of roads and I
1:09:36
think you can solve essentially any traffic problem in any City.
1:09:41
If you go 3-D with with with tunnels of multiple layers of
1:09:44
tunnels going from, you know, connecting the Tea.
1:09:49
And you can also turn a lot of the streets into Parks because
1:09:52
you won't need to run it. You won't need to have cars,
1:09:54
lowers, you won't need parking. So I think wine company.
1:09:59
I think is capable of much more transformation than it may seem
1:10:04
and we actually have an operational tunnel in Vegas
1:10:06
right now. So yeah if you go to Vegas, go
1:10:11
to Resorts World and you can hop in the tunnel and go to the
1:10:14
convention center like, yeah, and you can paint those Exactly,
1:10:20
I'm doing what I can to support those.
1:10:22
So So yeah, I think I think for our company is going to do some
1:10:31
pretty interesting things in the years to come.
1:10:33
So let's see. Good afternoon Ilan.
1:10:36
I think many people share my experience.
1:10:39
I gave you an art least Tesla, my complete family's Legacy
1:10:43
because I believed in it and thank you for you and your
1:10:45
company. Outperforming, I think you saved
1:10:47
a lot of us. Thank you.
1:10:50
Okay, so my question is, this commercial aircraft have
1:10:57
Something called a cast where aircraft relate Telemetry of
1:11:00
their position between one another to prevent a collision?
1:11:03
Yeah, sometimes too much Telemetry.
1:11:08
So taking us to a higher level. Do you see Tesla's communicating
1:11:12
with one another, with one another and Dojo turning into
1:11:15
some kind of ultimate. Air traffic control for Tesla
1:11:17
Supply chains and Robo taxi. Thank you.
1:11:20
Actually, that's interesting idea, I haven't thought about
1:11:22
that right now, go with Dojo is just to be really good at video
1:11:27
training. So we actually already have, I
1:11:30
think the, maybe the fourth, and maybe approaching the third most
1:11:35
powerful Computing Center in the world, for AI training.
1:11:42
Yeah. They might be thrown at this
1:11:43
point, which obviously uses just an enormous number of gpus and
1:11:46
stuff. So, so our first goal with with
1:11:50
odors to make it competitive and and be more effective at neural
1:11:55
net training, then a whole bunch of gpus.
1:11:59
And might, you know, might get there soonish and then of course
1:12:06
it can be used for many other neural, net training tasks.
1:12:10
It's a fundamentally to computer design from the ground up to be
1:12:13
optimized for neural net training, which really no
1:12:16
computer has. That's never been done before.
1:12:21
And yeah, so, And then maybe it'll do traffic control of
1:12:25
hadn't really thought of that. The Tesla's probably there, we
1:12:31
some merits to communicating. Port for tells us to communicate
1:12:36
to each other. But that won't be needed for
1:12:40
self-driving at all and for lung for a long time, the vast
1:12:45
majority in the of cars on the road will be manually driven.
1:12:48
So the the value of Tesla Tesla communication is is not that
1:12:53
high except for perhaps communicating traffic issues or
1:12:59
accidents, potholes things that may be helpful to a road
1:13:04
closures and that kind of thing. So it's like you're getting real
1:13:07
time. At Tesla ahead of you is got
1:13:09
seen a road closure and you get that real time updated to your
1:13:12
car. So you don't get stuck in the
1:13:13
road closure situation. That's the kind of stuff that I
1:13:17
think. We're definitely what we are?
1:13:19
We are working on right now, so, alright.
1:13:22
Alright, we have one last question and it's yours.
1:13:27
Thank you very much. Hello.
1:13:28
We Lon, hey, simply. I would just like to say thank
1:13:31
you for everything you've done for earth and the community and
1:13:34
everything you've done. I have one question and aside
1:13:36
from working for Tesla being a share.
1:13:38
Holder or purchasing a Tesla. How can the masses help?
1:13:44
Push your vision? All right, well, I think just
1:13:47
generally you're encouraging sustainable energy and being
1:13:52
supportive of that I think is really helpful.
1:13:56
So, But after I say, you're doing great so far.
1:14:03
So, you know, like I said, without your support, we were
1:14:06
tells it wouldn't be where it is.
1:14:08
So as people like yourself and everyone in this room and out
1:14:10
there and the three million people who bought our cars and
1:14:15
the millions who've gotten solar.
1:14:17
And you know, that's all that'll really helps, you know, make the
1:14:21
world a better better place for the future.
1:14:25
And I say, like it definitely, I'd like to sort of convey a
1:14:30
message of optimism about the future.
1:14:33
And like, if we, if we work really hard to accelerate
1:14:36
sustainable energy, sustainable transport, the future will be
1:14:40
good. You know, it's and I think just
1:14:42
just, make sure people know that like and I'm not suggesting
1:14:45
complacency at all. I'm just saying if we work hard
1:14:49
towards a sustainable future, we will achieve it.
1:14:53
And and the future was bright. The
1:15:06
alright thanks guys. Thank you.