Tesla's 2022 shareholders' meeting recap & video

By Dan Burkland
2022 Tesla shareholders' meeting
Tesla

Tesla held its 2022 shareholders' meeting yesterday. At the event, Tesla discussed a variety of products and features including FSD Beta 10.13, the Cybertruck, Tesla Superchargers, and a new Tesla factory.

You can watch the entire event below (starts at the 2 minute mark), or read Dan Burkland's recap, which was originally posted on dburkland.com.

Part 1 - Formal Shareholder Items

• Martin - Intro

Robyn Denholm

• Global fleet of cars and vehicles to avoid 8.4M metric tons of green house gas emissions

• Avoided emissions that were equivalent to ICE vehicles driving 20B miles

• By 2030 Tesla plans to sell 20M vehicles / year

• In June 2022 Tesla achieved the highest vehicle production month in their history

• Tesla continues to make an impact w/ Solar & Energy Storage business

• Tesla sold 4 GWH of energy storage products in 2021, enough to power 3M homes

• Solar demand has increased 4x

• Goal is for all factories to be carbon neutral

• Tesla already uses less water per vehicle than any other automaker

• Sustainability drives everything Tesla does

Stockholder Proposals

• Proxy Statement: document

Part 2 - Elon's Presentation / Q & A Session

• Attempting to achieve a 2M vehicle / year run rate by end of 2022

• Tesla just recently produced their 3 millionth vehicle

• Looking back 10 years ago, Tesla only made 2500 Roadsters and maybe a couple hundred Model S (August 2012)

• “Cleanest exponentials” -Elon Musk

• $TSLA shareholders have approved the 3-for-1 stock split

2022 Tesla shareholders' meeting
Tesla

• Important to note the increase in strong free cash flow is occurring before autonomy

FSD Beta 10.13

• “This year I swear” (FSD being released to public)

• “Made some significant architectural improvements with FSD Beta 10.13 release, might qualify for 10.69” -Elon Musk

• “It's gotta earn that” -Elon Musk

• “We are going to solve Chuck's turn” -Elon Musk

• “Roughly 90% success rate w/ Chuck's turn”

• “Might be next week” -Elon Musk

• “It's working well for me” -Elon Musk

• FSD will save lives by driving an order of magnitudes safer than people

• Tesla has the highest operating margin in the entire industry

2022 Tesla shareholders' meeting
Tesla

• Every time a competitor advertises for EVs Tesla notices an increase in sales

• Model Y is tracking to be highest vehicle by revenue by end of 2022 and highest by unit by end of 2023

Gigafactories

• Tesla will soon be ready to announce another factory location by end of 2022

• Tesla plans to eventually have 10-12 Giga Factories 

• Each factory will have the capacity to produce 1.5-2M vehicles per year

• Fremont factory is highest output car factory in North America

• Elon thinks it's going to be a friendly competition between Berlin, Fremont, and Texas (Shanghai hard to beat)

• Tesla has produced more energy than it consumes (includes vehicle charging)

2022 Tesla shareholders' meeting
Tesla

• Tesla battery recycling is already happening at a rate of 50 packs per week in Nevada

• Continues to scale

• Not that many batteries to recycle since their longevity has been really good so far (more of a longterm play)

Master Plan: Part 3

• Will be focused on scaling

• “What are all the things needed to achieve a fully sustainable global economy”

• Cathode materials

• Aluminum, Etc.

• Goal is to reiterate this is absolutely doable and that we want it to be done as fast as possible

2022 Tesla shareholders' meeting
Tesla

Vehicle Structure

• Lighter

• Stiffer

• Better NVH

• Better in pretty much every way when compared to stamped underbody construction

Manufacturing

• Model Y requires only 30% of robots needed to produce vehicles as required by the Model 3

• Improved layout of factory where it is now a signal monolithic factory

2022 Tesla shareholders' meeting
Tesla

• Eventually all cars will be self driving but it will be hard to replicate Tesla's manufacturing capabilities

Working at Tesla

• Employees are free to switch between SpaceX & Tesla

• Factory safety has dramatically improved, Elon believes they now have the safest factories in the business

• Tesla has encouraged employees to submit suggestions on improving factory safety with a goal of 3 suggestions per employee (They have since met that goal and safety has increased as a result)

• 3M job applicants over last year

Supercharger Network

• 99.96% uptime

• Continue to deploy V3 Superchargers, V4 set to be deployed next year

• Elon mentioned that more good news regarding the Supercharger network is coming

Safety

• Tesla has a very detailed feedback loop when it comes to vehicle crashes

• Auto seat belt tensioning is an example of how Tesla continues to improve safety via OTA updates

• Activated via Autopilot AI when a crash is 99.99%+ sure to happen

FSD Beta

2022 Tesla shareholders' meeting
Tesla

• Tracking to well over 100M miles by end of 2022

• Wide spread release by end of 2022, will be available to anybody who requests it

AI Day: Part 2

• September 30th, 2022

• Elon believes Optimus will turn the notion of what an economy is on its head

Next Decade

• 10 years ago they had less than 3000 cars, now its more than 3M

• Elon thinks vehicle production should be able to exceed over 100M 10 years from now

Questions

Plans for Cash

• Tesla has used a small amount of its available cash for acquisitions and that will continue to be the case unless the right opportunity arrises (automation, software, manufacturing, etc.)

• Spending CapEx and R&D money as fast as they can without wasting it

• Share buyback may be in the cards as long as there isn't another force majeure event

Factories

• 12 factories seems to be the perfect number with a maximum production rate of 2M vehicles per factory

Cybertruck

• Specs and pricing will be different (a lot has changed since 2019)

• Inflation and various issues are to blame

• Production equipment & tooling will begin getting installed in Giga Texas, volume production still targeted by mid-2023

US & China Tension

• Elon hopes for peace and respect between the US & China

Supercharger Locations

• Permits are extremely hard to obtain in some areas (ex. Malibu)

• Tesla continues to prioritize new Supercharger locations by busiest locations

• Elon mentioned there will be an online poll where people can vote where they want new Supercharger locations built

• Trying to do more fun things when it comes to Supercharger locations (ex. Futuristic Diner in Hollywood)

4680 Output

• Tesla is making a decent number of 4680 cells each week and Elon projects that they'll be in high volume production by end of 2022

• 4680 production does not yet impact vehicle output however it will in 2023

Master Plan

• New master plan not yet ready, plan to finish it by end of August 2022

Supply Chain

• Most of commodities that go into Tesla vehicles are trending down (cost) over next 6 months which suggests that we are past peak inflation

• Elon thinks we will have a relatively mild recession for 18 months (just a guess) and that inflation should drop rapidly

Autonomy

• AI is going to increase utility of passenger vehicles by 4-5x

• Vehicles will still cost the same to produce so gross margins are expected to rapidly increase

• Elon still believes folks will have the option to own a car, rent it out when they aren't using it, or simply rent somebody else's vehicle (ex. Uber)

• “Optimus will bring the future to now”

Media

• Elon annoyed that most analysts don't drive Teslas which prevents them from having a good understanding of the Tesla customer experience

Succession

• Elon believes in strong product roadmap that will lead to success for quite some time

• Elon intends to stay with Tesla as long as he is useful, plans to continue to closely focus on factory & product design 

• Tesla would continue to do well even if he was kidnapped by aliens (or returned to his own planet haha)

• The only publicly traded securities Elon owns are $TSLA and $TWTR

• Believes he has a good sense of where to point the engineering team at $TWTR to make it radically better

• Thinks Twitter would accelerate his original vision of x.com by 3-5 years and be something that is very useful to the world

Tunnels

• Elon wanted to clarify he is pro-train

• Elon believes tunnels could solve virtually any traffic problems around the world and allow above ground road space to be reclaimed for parks

Dojo & Tesla Communicating w/ Each Other

• Goal #1 is to be really good at video training

• Approaching at being the 3rd most powerful super computer in the world (geared for AI training)

• Fundamentally focused on NN training which has never been done before

• Some merit with Teslas communicating with each other but not needed for FSD (traffic, accidents, pot holes, etc.)

Tesla Advances with 5G: A Future of Enhanced Connectivity for Cars and Robotics

By Kevin Armstrong
Tesla building 5G private network
Tesla building 5G private network

Tesla appears to be planning an ambitious project to build a private 5G network. This initiative would revolutionize connectivity for its vehicles and the robot, Optimus, as well as any other plans the company is likely to develop in the future.

Innovative Job Posting Reveals Big Plans

Although now removed, a recently spotted job posting for a Cellular Systems Integration Engineer on Tesla's career page shed light on the company's intentions. The role demands expertise to elevate Tesla's vehicle and Optimus robot connectivity, promising to push the boundaries of low latency and high data rates.

Tesla's journey from 3G to the anticipated 5G upgrade will bring about ultra-reliable communication and high-speed data transfer, crucial for over-the-air software updates, autonomous driving features, and real-time data analytics.

The Strategic Role of Private 5G Networks

Deploying its private 5G network, Tesla aims to create a seamlessly connected environment in its manufacturing facilities, research labs, and outdoor spaces. This infrastructure is not just about enhancing vehicle connectivity; it's also pivotal for the operational efficiency of the Optimus robot in various scenarios, including warehouse operations.

Tesla's foray into private 5G networking places it in an advantageous position in the automotive and tech industries. This strategic move aligns with the global trend towards adopting private 5G networks, which promise to revolutionize industries with their reliability and speed. Tesla's efforts to develop a private 5G protocol stack that integrates with any cellular infrastructure globally will set new industry standards.

With 5G, Tesla vehicles and Optimus robots will benefit from significantly reduced latency, offering under 5 milliseconds compared to the 60-98 milliseconds of 4G networks. This technological advancement is expected to enhance the functionality and responsiveness of Tesla's products, paving the way for advanced autonomous driving capabilities and efficient robot operations.

Conclusion

Tesla's interest in developing a private 5G network is a logical step. By building an infrastructure that supports the fastest connectivity standards, Tesla is preparing for its vehicles and laying the groundwork for sophisticated robotics applications. This endeavor reflects Tesla's ongoing commitment to innovation and its role in shaping the future of transportation and automation.

Tesla Is in Talks To Produce Electric Vans in Italy According to Report

By Kevin Armstrong
Van rendering
Van rendering

Italy has been discussing with Tesla about potentially establishing a factory producing electric trucks and vans. This information came to light in an Italian media outlet, Il Sole 24 Ore, which reported that the Ministry of Business and Made in Italy (Mimit) spearheaded talks to secure Tesla's investment.

Tesla and Italy: A Strategic Dialogue

Since last summer, Italy has broadened its industrial horizons by engaging in talks with Tesla, alongside negotiations with prominent Chinese manufacturers such as BYD, Great Wall Motors, and Chery Automobile. Notably, the discussions with Tesla have centered around producing electric commercial vehicles, highlighting a departure from conventional car manufacturing and reflecting the evolving demands of the global market.

Under the leadership of Minister Adolfo Urso, Italy aims to invigorate its automotive sector by encouraging the presence of multiple manufacturers. This approach is designed to stabilize the national components sector, which faces challenges due to the shift towards electric vehicles. Italy aims to produce 1.3 million vehicles annually, including a significant contribution from a new yet-to-be-determined manufacturer.

A Geopolitical and Industrial Balancing Act

Italy's engagement with Tesla occurs amidst a delicate phase of negotiations with Stellantis for increased vehicle production within the country. This strategic dialogue with Tesla, alongside discussions with Chinese competitors, is a pivotal element in Italy's industrial and geopolitical maneuvering.

A multipurpose van is the next logical step for Tesla to produce once the less expensive next-gen platform is released (code name Redwood). However, engineers seem to be busy perfecting the next-gen Roadster, and the van has had little discussion. Given the company's leaks, if a van were in the works, you would think we would’ve heard about it. Perhaps this is the nudge Tesla needs to get the van into production.

As Italy endeavors to become a key player in the electric vehicle industry, its negotiations with Tesla signify a promising development. The possibility of Tesla establishing a facility for electric trucks and vans in Italy underscores the country's commitment to sustainable transportation and positions Italy as an attractive destination for automotive innovation.

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