Tesla's 2022 shareholders' meeting recap & video

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

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

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)

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

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

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

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.)

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Tesla Superchargers, Patents, and Autopilot Opened Up for Competition

Tesla is offering up its patents for an exchange

Tesla

Tesla has signaled a more open approach by allowing other automakers to access its Supercharger network. This move, spurred on by a groundbreaking deal with Ford, is more than a simple act of corporate benevolence. Superchargers, now a significant profit center for Tesla, could potentially revolutionize the electric vehicle charging infrastructure by making it universally accessible.

Patents Unleashed: A Closer Look

Tesla has also made strides in the world of intellectual property, opening up select patents to other automakers. This move echoes a similar step taken nearly a decade ago when Tesla announced an open-source approach to its patents. However, the details warrant attention. Tesla isn't giving away these patents out of pure altruism. There's an important caveat; Tesla requires a cross-license deal, effectively asking for access to the other automakers' patents in return. Critics argue that this does not constitute "free" access. It's a strategic maneuver aimed at mutual growth rather than unilateral generosity.

FSD and Autopilot: A Bold Proposition

Adding to the mix, Tesla's CEO Elon Musk announced the possibility of licensing Autopilot and Full Self-Driving (FSD) technologies to other automakers. This move could transform the landscape of autonomous driving by making Tesla's advanced technologies more widely accessible. However, the practical implementation is a complex process. Past discussions about licensing self-driving technology to other automakers have not materialized, indicating potential hurdles ahead.

An Industry Gamechanger

While the recent developments have generated much buzz, the long-term implications for Tesla and the electric vehicle industry remain unclear. Directly licensing technologies and working with companies that have designed them is a viable way to accelerate technological adoption. Tesla's moves could pave the way for more partnerships akin to its early collaborations with Daimler and Toyota. However, the willingness and ability of other automakers to integrate Tesla's technology remain to be seen.

The overarching narrative here aligns with Tesla's mission statement to help accelerate the world's transition to sustainable energy. By allowing broader access to its technologies, Tesla stands to propel the entire industry forward, even if it potentially narrows its competitive edge. But as Musk stated, "Patents do not define technology leadership...but rather by the ability of a company to attract and motivate the world's most talented engineers."

Whether this bold gambit will yield the intended results or backfire remains a question only time will answer. For now, Tesla continues to push boundaries, challenging the status quo in its relentless pursuit of a sustainable future.

Tesla Gears Up to Enhance Service Mode: New Features Unveiled in Upcoming Software Update

Tesla is making improvements to its Service Mode

In the ongoing quest to deliver advanced vehicular technology, Tesla never fails to surprise. Tesla enthusiasts have new reasons to rejoice as a host of features are set to augment Service Mode in an upcoming software update.

Pioneering Enhancements: From Diagnostics to Calibrations

With every update, Tesla's futuristic touch becomes more evident. Michal Gapinski, creator of the Tesla Android Project, which famously enables Apple CarPlay in Teslas through a web-based solution, has shared some upcoming features to Tesla's Service Mode with us. In a forthcoming software update, Service Mode will house new diagnostic screens for seat belts, the HVAC system, and what appears to be a new window calibration screen. These screens promise to provide a comprehensive, accessible system check-up that offers valuable insights into your Tesla's health.

Sealt Belt Service Menu

Tesla is making improvements to its Service Mode

The first new Service Mode menu appears to display details about Tesla's seat sensors, seat belts and the restraint control module (RCM). The car's visualization is displayed from the top with various areas are highlighted around the vehicle including what appears to be the seat sensors, seat belt buckles and retractors. Tesla displayed how they're tied together and how they communicate with the RCM.

New Window Calibration Menu

Tesla is making improvements to its window calibration system

But that's not all. Tesla also appears to be adding a new menu for calibrating vehicle windows. This updated window calibration menu features a new visualization, lets you easily calibrate each window individually and displays the generation of the hardware installed.

HVAC Visualization

A particularly intriguing feature in the upcoming update is a dedicated service mode for Tesla's HVAC (Heating, Ventilation, and Air Conditioning) system. This unique feature will display fan RPM and temperatures in various areas, seemingly allowing a multi-angle view of the HVAC system's visualization.

Though Service Mode is tailored for technicians or Tesla owners with a deep understanding of their vehicle, it offers a new level of engagement, providing detailed insights that can help troubleshoot, reset, calibrate, and even configure new parts.

Accessing Service Mode

To access Service Mode, navigate to Controls > Software, and tap and hold on the vehicle's model name that appears underneath the car's image until a water ripple appears. Then release and type 'service' in the dialog box before hitting 'ok'. It is crucial, however, not to make changes unless you understand the implications fully, as they could negatively affect the vehicle. Moreover, DO NOT drive with Service Mode activated, as it disables critical safety features like traction control.

While the new Service Mode features are not in production yet, they are expected to debut in an upcoming update. As we eagerly await these enhancements, one thing is clear - Tesla continues to push the envelope in providing owners with an unparalleled, comprehensive understanding of their vehicles.

Stay tuned for more updates on these exciting developments as they're expected in an upcoming software update.