Tesla Annual Shareholder Meeting 2024
Questions on ElonsFAQ asked in this interview (3)
Transcript
0:00Constance RickettsSa.
0:25Elon MuskSam.
0:59Brandon Ehrhart (General Counsel)Welcome to Texas home.
1:10Brandon Ehrhart (General Counsel)The home of tesla.
1:20Brandon Ehrhart (General Counsel)My name is Brandon Earhart. I'm the General Counsel and Corporate Secretary. And this meeting is going to be in two parts. First, we're going to cover the 12 items that stockholders have been asked to vote on, as well as any other matters that have been properly presented.
1:34Brandon Ehrhart (General Counsel)Second, our founder and CEO Elon Musk will provide a presentation.
1:48Brandon Ehrhart (General Counsel)During the course of the following sessions, we may discuss our business outlook and make other forward looking statements. Such statements are predictions based on current expectations. Actual events or results could materially differ due to a number of risks and uncertainties, including those disclosed in our most recent 10k or 10q as filed with the SEC.
2:08Brandon Ehrhart (General Counsel)Such forward looking statements represent our views as of today, should should not be relied on hereafter and we disclaim any obligation to update them after today. At this time, I'd like to thank members of the Tesla team and the board that are here in attendance.
2:25Brandon Ehrhart (General Counsel)A representative from PricewaterhouseCoopers, Tesla's independent auditor is also present. But before we begin, I'd like to introduce you to our board chair, Robin Denholm, who would like to say a few words.
2:50Robyn Denholm (Board Chair)Thanks Brandon. And hello everyone. As chair of Tessa's board, I am honored to welcome you all to our home, Texas for our annual for our annual 2024 annual shareholder meeting.
3:06Robyn Denholm (Board Chair)And when I say I'm honored to welcome you, our shareholders, I truly am. No other company in the world has such a diverse, engaged and supportive set of shareholders as Tesla.
3:20Robyn Denholm (Board Chair)No other shareholder base understand its company like you do, nor is as committed to Tesla's mission to accelerate the world's transition to sustainable energy like you are. It is a shareholder base whose interests the board are proud to represent.
3:40Robyn Denholm (Board Chair)It is also a shareholder base that understands that in order to accelerate the world's transition to sustainable energy and a sustainable energy economy, Tesla needs to develop the most revolutionary technologies.
3:55Robyn Denholm (Board Chair)Not only in autos, but in energy and artificial intelligence. And as well, our achievements this past year are steps towards fulfilling our mission. Some highlights include the Model Y becoming the best selling vehicle in the world in 2023.
4:20Robyn Denholm (Board Chair)Beginning deliveries of the much anticipated Cybertruck, proving that the muscle and utility of a pickup truck truck can be electric and cool. And our energy storage deployments reaching an all time high in 2023, with the deployment trend continuing in 2024.
4:42Robyn Denholm (Board Chair)By using our products, Tesla customers avoided releasing over 20 million metric tons of greenhouse gas emissions in 2023. That is the equivalent of of 51 billion miles driven by ICE vehicles.
4:59Robyn Denholm (Board Chair)An increase of about 18 billion avoided ICE miles since 2022. But to continue the exponential growth in greenhouse gas emission avoidance, we not only have to get our products into as many customers hands as possible, but we also need to increase the utilization of our products.
5:22Robyn Denholm (Board Chair)And to help further with that goal, we released FSD supervised demonstrating that our approach to autonomy is scalable and that accomplishments in artificial intelligence, along with leveraging our existing production lines to get our next generation products to market faster are essential to achieving our mission.
5:47Robyn Denholm (Board Chair)We have made and plan to make further investments in hardware and software ecosystem to further advance our path to autonomy and set a course to realization of Robo Taxis.
6:01Robyn Denholm (Board Chair)But sustainability is not just about avoiding emissions. It needs to take into account the whole life cycle from the manufacturing of the products to the products end of life.
6:14Robyn Denholm (Board Chair)That is why we source responsibly, we design our manufacturing processes to use less water per vehicle than the industry average. And for the third year in a row, we power our supercharger network with 100% renewables energy.
6:35Robyn Denholm (Board Chair)And we are also working to build a battery material recycling ecosystem both internally and with others to ensure that we are moving towards a truly circular economy for energy storage.
6:50Robyn Denholm (Board Chair)In 2023 alone, we supported the recovery of enough battery materials to build 43,000 new rear wheel drive Model Y's. That result is the epitome of a sustainable economy. While sustainability is our mission, we also have the goal of safety.
7:13Robyn Denholm (Board Chair)Our cars are engineered to be some of the safest in the world and we take real world data from our fleet and our ability to push over the air updates to optimise safety for all our vehicle models.
7:29Robyn Denholm (Board Chair)Our attention to autonomy also plays a role in our goal of safety. Based on 2023 data, Tesla vehicles with driver assist technologies engaged have only a one vehicle accident per 5.64 million miles driven compared to the U.S.
7:49Robyn Denholm (Board Chair)i think it's worth clarifying.
7:55Robyn Denholm (Board Chair)Compared to the US vehicle fleet of one accident per 670,000 miles driven. So not only are you protecting the environment by driving a Tesla, you're also protecting yourself and those who ride with you.
8:13Robyn Denholm (Board Chair)With another year of progress in furthering our mission under our belt, I want to take this moment to thank our phenomenal Tesla employees whose creativity, hard work and dedication are the source of our success.
8:28Robyn Denholm (Board Chair)As huge thanks and as most as most are also shareholders alongside each and every one of you, I hope each employee takes pride in the role that you have played in Tesla's accomplishments.
8:50Robyn Denholm (Board Chair)I am proud of you and the board and I appreciate you tremendously. Finally, I Want to remind our shareholders that your board is listening and we are here to represent your interests.
9:05Robyn Denholm (Board Chair)You are. Yes.
9:11Robyn Denholm (Board Chair)You are the owners of the company and your voices, your perspectives and your input are critical to us as a board and to the direction of the company. My fellow directors and I serve as your fiduciaries and oversee Tesla's mission, purpose and strategy.
9:29Robyn Denholm (Board Chair)With those responsibilities in mind, we continuously set the highest standards for ethical behaviour, corporate citizenship and corporate governance. You don't see the day to day work of the directors, but I can assure you this is a highly engaged board and I would like to thank my fellow directors for their dedication.
9:51Robyn Denholm (Board Chair)Whether it be inside the boardroom, meeting with our shareholders, or working closely with our team members throughout the company. Tesla is unique. Thank you.
10:09Robyn Denholm (Board Chair)Tesla is unique in how active and large our retail shareholder base is. And we hope you here in this room and our shareholders joining us virtually today, continue to take advantage of our shareholder platform to enhance your engagement with Tesla.
10:27Robyn Denholm (Board Chair)I want to give a special shout out to our small but mighty IR team and legal team and everyone involved in running this year's proxy campaign. Both inside and outside of Tesla.
10:48Robyn Denholm (Board Chair)There is still much to do, but it has galvanised us around the strong belief that the right things are always worth fighting for. Thank you. And now I'll hand it back.
11:01Robyn Denholm (Board Chair)Thank you. Now I'm going to hand it back to Brandon. Thank you.
11:17Brandon Ehrhart (General Counsel)Thank you, Robin. So I will now call the meeting to order. The time is now 3:40pm Central and I declared that the polls are now open. We have already received over the past few weeks voting proxies from our stockholders.
11:32Brandon Ehrhart (General Counsel)However, if you wish to vote your shares at this time, you may do so or through the virtual meeting portal or if you want to vote in person. Ballots and ballot boxes are available at the front.
11:43Brandon Ehrhart (General Counsel)Tesla's Board of Directors has appointed Tony Cardidio, a representative of the Cardidio Group, to serve as the inspector of election. In addition. In addition, Broadridge Financial Services has certified that starting on April 29, 2024, the proxy materials or notice of Internet availability for proxy materials were mailed or provided to all Tesla stockholders of record on April 15, 2024.
12:11Brandon Ehrhart (General Counsel)We have a majority of the outstanding shares represented at the meeting. So I declare that there is a quorum present and that we may proceed with the meeting. The items on the agenda are as follows.
12:23Brandon Ehrhart (General Counsel)There are five Tesla proposals. The election of two Class 2 directors, James Murdoch and and Kimball Musk, to serve for a term of three years or until their respective successors are duly elected and qualified to approve executive compensation on a non advisory basis.
12:43Brandon Ehrhart (General Counsel)To approve the redomestication of Tesla from Delaware to Texas via conversion.
12:54Brandon Ehrhart (General Counsel)To ratify the 100% performance based stock option award to Elon Musk that was previously approved by stockholders in 2018.
13:14Brandon Ehrhart (General Counsel)To ratify the appointment of PricewaterhouseCoopers LLP as Tesla's independent registered public accounting firm for the fiscal year 2024. Tesla's board has recommended that our stockholders vote for each of the two director nominees and and for each of the four other Tesla proposals.
13:32Brandon Ehrhart (General Counsel)We have also received seven stockholder proposals that are described in the proxy statement. I would like to remind Tesla's board has prepared a statement in opposition to these proposals which also appear in our proxy statement.
13:46Brandon Ehrhart (General Counsel)So let's turn to those seven stockholder proposals. The first one is an advisory vote regarding reduction of director terms to one year. Our board has recommended that our stockholders vote against this.
13:57Brandon Ehrhart (General Counsel)As explained in the proxy this proxy this stockholder proposal is proposed by Mr. James McRichey who has prepared a pre recorded message.
14:10Shareholder ProponentThank you. We presented a similar proposal in 2021. 55% supported it even though the board put up a competing proposal accountability every other year instead of every year. Neither receive the required 67% of shares owned.
14:27Shareholder Proponent90% of the S&P 500 have a declassified board. Most institutional shareholders will again support our proposal. Join them. The recent Delaware court case identified three legal deficiencies at Tesla.
14:44Shareholder ProponentDirectors were not independent, the facts of the pay plan presented to investors were misleading and the board failed to negotiate properly. A major part of the cure is declassifying the board so shareholders can hold directors accountable or submit their own nominations.
15:02Shareholder ProponentMatt Moscardi of Free Float calls proposal number six the most important vote today since it may enable investors to change the board, bringing new skills and professionalism. John Chavedin's simple majority vote is the other crucial vote.
15:20Shareholder ProponentAnother important endorser is Nel Minow, co founder of companies including Proxy Advisor iss. The Musk premium is already eroding. Tesla is Musk's liquid piggy bank since it's publicly traded.
15:38Shareholder ProponentHis other companies are not. Either he sticks around long enough to use our shareholder capital to fund his other ventures or he shifts his attention sooner if we reject his pay package and turn off the money.
15:52Shareholder ProponentTap. Bite the bullet. Prepare for a future that doesn't depend on a superhero dictatorship. We need to transition from a board dominated by friends and family to one of expert independent directors in engineering, software and other relevant fields.
16:11Shareholder ProponentMusk is A genius. I'm saddened to see him focus his attention elsewhere, but it is happening. Don't let him siphon off more from Tesla. We need to transition to a more democratic Tesla that can attract customers, employees and shareholders seeking a better world ahead.
16:30Shareholder ProponentAgain, vote for number six and seven. Declassify the board for accountability. Lower the voting threshold for more flexibility. Vote now before the polls are closed. Your vote can make a significant difference in our future.
16:47Shareholder ProponentThank you.
16:51Brandon Ehrhart (General Counsel)Thank you. Thank you, Mr. McCritchie. As a reminder, the board's response was contained in our proxy statement. The second stockholder proposal is an advisory vote regarding simple majority provisions in our governing documents.
17:04Brandon Ehrhart (General Counsel)Our board has recommended against and aren't set forth for the reasons in the proxy. This stockholder proposal is proposed by Mr. John Chivedin, who is on the line to present this proposal.
17:15Brandon Ehrhart (General Counsel)Mr. Chavetin, I would like to invite you to speak. You will have three minutes.
17:19John CheveddenThree minutes.
17:24John CheveddenHello, this is John Chavedin. Proposal seven, simple majority vote. Charles requested the Board of Directors take the necessary steps so that each voting requirement in the charter and bylaws that calls for a greater than civil majority vote being replaced by a requirement for a majority of the votes cast forward against such proposals for a simple majority.
17:45John CheveddenThis includes making the necessary changes. In plain English, this proposal 7 is the exact same concept that the Tesla Board of Directors supported at the 2022 Tesla annual meeting.
17:58John CheveddenThe 2022 Tesla board of directors proposal then won 98% support from the Tesla shareholders who voted. And the Board of Directors version of this proposal would have been adopted earlier if the Board of Directors had only made a slight effort to encourage more Tesla shareholders to vote for their proposal.
18:19John CheveddenThis simple majority votes standard proposal will help improve Tesla shareholder rights. Tesla now scores a dismal 10 in shareholder rights, with 10 being the worst possible score. The Tesla Board of Directors supported this proposal concept in 2022 and should do so today.
18:39John CheveddenShoulder rights and a civil majority vote standard are all the more important when Tesla has a CEO, Elon Musk, who is threatening to give less attention to Tesla and is threatening to withhold advanced technology from Tesla unless he gets a $56 billion paycheck.
18:57John CheveddenNever before have sharers been under such duress when asked to prove an outrageous $56 billion CEO paycheck. Plus, there is no promise with the $56 billion paycheck that Mr.
19:11John CheveddenMusk will devote any minimum percentage of his time to Tesla or pursue any minimum amount of advanced technology. At Tresla, Russ Gerber of the investment firm Gerber Kawasaki said.
19:24John CheveddenI believe the Tesla Board of Directors is the most conflicted, least independent and most incapable board of directors in the history of business. Please vote. Yes. Simple majority vote.
19:36John CheveddenProposal 7.
19:40Brandon Ehrhart (General Counsel)Thank you Mr. Chavadin. As a reminder our the Board's response is set forth in the proxy. Our third stockholder proposal is an advisory vote regarding annual reporting on anti harassment and discrimination efforts.
19:52Brandon Ehrhart (General Counsel)Our board has recommended against for the reasons set forth in the proxy. This stockholder proposal is proposed by the New York State Common Retirement Fund as the lead filer which has requested the Dr.
20:03Brandon Ehrhart (General Counsel)Kristen hall as represented for Neo Impact Capital as co filer for this proposal present this proposal. Dr. Hull, I would like to invite you to speak. You have three minutes.
20:16Dr. Kristin HullThank you. Hello, I'm Dr. Kristen Hull of NEA Impact Capital. I'm here on behalf of lead filer New York State Comptroller Thomas D. Paoli, Trustee of New York State Retirement Fund, owner of Tesla shares valued at over 650 million as of March of this year.
20:38Dr. Kristin HullAnd I'm here as a co filer of Proposal 8. The fund is a significant long term owner of Tesla and has an explicit focus on investing in climate solutions.
20:49Dr. Kristin HullLongview Large Cap Fund through its Trustee Amalgamated Bank, AP7 and Arjuna join us in filing this resolution. Our firm name NIA means intention and purpose. We invest only in those companies we see building toward a better world, a sustainable and inclusive future.
21:09Dr. Kristin HullAs the founder of nia, I had been proud in our early ownership of Tesla, I saw the potential and the need for innovation in the automotive and the clean energy market space.
21:21Dr. Kristin HullHowever, when looking under the frunk, we find failures in workplace management one of the most important components of any business. Employees need to be hired, trained, motivated and engaged to do high quality work and we need those employees to be able to contribute to their top ability.
21:44Dr. Kristin HullTo do so, they must feel both physically and emotionally safe at work. Investors are requesting the report outlined in Proposal 8. Because workplace abuse, harassment and discrimination have no place at Tesla.
21:58Dr. Kristin HullThey can result in substantial costs including employee turnover, increased absenteeism and reduced productivity, as well as legal costs, all of which can impact shareholders investments in the company. They may also lead to difficulties in recruiting high quality employees, something that Tesla needs to remain innovative and at the forefront of a quickly moving technological landscape.
22:25Dr. Kristin HullWe have expressed concerns about Tesla's workplace for years and year after year more harassment and discrimination allegations have emerged with few visible improvements in Tesla's people management policies or practices.
22:40Dr. Kristin HullTo assuage our concerns. Lawsuits and class actions before Tesla now involved thousands of employees with allegations including repeated use of racial epithets by managers and employees, segregation and discrimination against non white employees in job assignments, pay and promotion, and retaliation when employees report their experiences.
23:05Dr. Kristin HullThese concerns are why I now formally move proposal 8 requesting that Tesla's board commission an independent report on the effectiveness of the company's efforts to prevent harassment and discrimination within this revolutionary and innovative workspace.
23:25Dr. Kristin HullThank you.
23:27Brandon Ehrhart (General Counsel)Thank you, Dr. Hall. The board's response is set forth in the proxy materials. Let's turn to the fourth stockholder proposal which is an advisory vote regarding the adoption of freedom of association and collective bargaining policy.
23:41Brandon Ehrhart (General Counsel)Our board has recommended against for the reasons set forth in the proxy. This stockholder proposal is proposed by SOC Investment Group whose representative Tezel Patel has prepared a prerecorded message.
23:58Tejal PatelHello, I'm Tejal Patel, the Executive Director of the SOC Investment Group and I Hereby move proposal 9, a shareholder proposal requesting that Tesla Board of Directors adopt and disclose a non interference and collective bargaining policy that upholds international labor rights standards in its operations.
24:16Tejal PatelThis resolution was submitted with other CO filers and we are concerned that Tesla's existing policy fails to clearly explain how conflicts between international and local labor law will be resolved.
24:27Tejal PatelAnd because of clear indications that Tesla is not adhering to its current policy despite the operational, legal, human capital management and reputational risks involved. We recognize that Tesla revised its global human rights policy in April 2023 to explicitly refer to the rights of workers to free association and collective bargaining.
24:46Tejal PatelBut these revisions were fatally compromised. The statement committing to respect these rights includes the qualifier in conformance with local law rather than referencing the often higher international human rights standards suggesting that Tesla respects these rights only as explicitly required by local laws.
25:05Tejal PatelNumerous signs suggest that Tesla is not respecting its workers fundamental rights. In Sweden, Tesla has faced months long strikes and boycotts over what has been characterized as a refusal to bargain.
25:17Tejal PatelMoreover, as part of its reporting on the situation, Reuters wrote that Tesla has a policy of not signing collective agreements which if true, would directly contravene the company's current policy.
25:29Tejal PatelIn Germany, Tesla faces allegations of refusal to bargain and poor working conditions. In the United States, Tesla has had adverse decisions by the full National Labor Relations board and the U.S.
25:41Tejal Patel5th Circuit Court of Appeals over labor rights violations. Just last month the NLRB issued a complaint alleging that restrictions in Tesla's workplace technology policy served to unlawfully discourage employees from joining unions or acting concertedly.
25:59Tejal PatelIt is also relevant for shareholders to consider the broader human capital management risks Tesla faces, including reports of higher health and safety violations and injury rates than peers and numerous lawsuits alleging of hostile work environments.
26:14Tejal PatelFreedom of association and collective bargaining are considered enabling rights, meaning that they empower workers to effectively advocate for additional labor rights, including the right to a safe and healthy workplace free from discrimination.
26:27Tejal PatelThe adoption of a comprehensive labor rights policy that clearly articulates a commitment to non interference, good faith collective bargaining and adherence to higher international standards would help Tesla better mitigate these human capital management risks as well as operational and reputational risks like we are seeing in Sweden.
26:46Tejal PatelTherefore, we urge you to vote for item nine. Thank you.
26:51Brandon Ehrhart (General Counsel)Thank you, Ms. Patel. The board's response is set forth in the proxy. The fifth stockholder proposal is an advisory vote regarding reporting on effects and risks associated with electromagnetic radiation and wireless technologies.
27:05Brandon Ehrhart (General Counsel)Our board has recommended against for the reason set forth in the proxy. This stockholder proposal is proposed by Landreau purcell who's represented. Dr. Deborah Davis has prepared a prerecorded message.
27:21Deborah DavisI am Deborah Davis, founder of Environmental Health Trust. I am speaking with you today on behalf of shareholder Landry Purcell regarding her proposal seeking an annual report on the risks for magnetic fields and wireless radiation in their products.
27:35Deborah DavisI'm also speaking on behalf of millions of young children, infants and toddlers and pre women who are more vulnerable to wireless radiation, according to the American Academy of Pediatrics.
27:46Deborah DavisI'm the founding director of the Board on Environmental Studies and Toxicology from the National Academy of Sciences and I published more than 220 scientific articles on environmental health and have concluded, along with hundreds of other experts that current exposures to non ionizing electromagnetic fields called EMF constitute a serious and unrecognized public health risk.
28:10Deborah DavisTesla vehicles operate with a 1,200 pound battery that emits magnetic fields and also uses wireless equipment such as WI fi and radar emitting wireless radiation. Tesla should provide transparent information on measured exposures and efforts to reduce them.
28:27Deborah DavisThe World Health Organization has concluded that both low levels of EMF and microwave or cellular radiation are are quote, possible carcinogens, the same category as some pesticides and gasoline.
28:39Deborah DavisThe companies that provide secondary insurance, like Lloyd's of London and Swiss Re, have long considered electromagnetic fields to be uninsurable, comparable to asbestos due to potential health and environmental damages.
28:53Deborah DavisTesla shareholders have a right to know how the company insures itself against such risks. The fact that current levels may be legal does not mean they are safe. In fact, US regulations were set more than a quarter century ago.
29:07Deborah DavisIt has been three years since the U.S. circuit Court of Appeals for the District of Columbia determined that the FCC had been, quote, arbitrary and capricious in its failure to consider all of the science and refusal to update wireless limits, Tesla has failed to inform consumers about the measured level of magnetic fields and wireless radiation within the automobile or or their other products.
29:30Deborah DavisInfants and toddlers by law are strapped into seats to protect them during crashes, but they have no protection from EMF that can go more deeply into their thinner skulls.
29:40Deborah DavisTo mitigate risks for Tesla, the company could shield its vehicles and ensure wireless antennas could be easily turned off. Hardware and software changes can lower exposures. Generally, Tesla has developed extremely rigorous compliance and hazard screenings beyond regulatory requirements for certain toxic chemicals.
30:00Deborah DavisInvestors can encourage the company to take a similar leadership role regarding reducing emf. It's time for the company to unambiguously compete on safety regarding wireless radiation and non ionizing radiation emitted by its products.
30:17Deborah DavisThank you.
30:19Brandon Ehrhart (General Counsel)Thank you, Dr. Davis. The board's response is set forth in the proxy. Let's move on to the sixth stockholder proposal, which is an advisory vote regarding adopting targets and reporting on metrics to assess the feasibility of integrating sustainability metrics into senior executive compensation plans.
30:36Brandon Ehrhart (General Counsel)Our board has recommended against for the reason set forth in the proxy. This stockholder proposal is proposed by Tulip Share Securities Ltd. Whose representative, Constant Ricketts, has prepared a pre recorded message.
30:53Constance RickettsGood afternoon fellow shareholders. Thank you for your time. I'm Constance Ricketts and today I'm speaking on behalf of Tulipshare in support of Proposal 11 urging Tesla to integrate sustainability metrics, including diversity among senior executives, into executive compensation plans.
31:13Constance RickettsThis proposal calls for robust quantitative targets and transparent reporting to both resolve executive pay plan controversies and ensure our company's long term stability and success. Diversity and independence in leadership are essential for innovation and enhanced decision making.
31:32Constance RickettsWhile sustainability metrics in executive compensation reflect alignment with regulatory pressures, investor expectations and responsible business practices. Despite 75% of S&P 500 companies incorporating sustainability metrics into executive pay plans, Tesla fails to do so.
31:54Constance RickettsThis is especially concerning given our mission to accelerate the world's transition to renewable energy. The recent ruling that voided our CEOs $56 billion pay package highlighted the need for fair and negotiated compensation plans that serve stockholders best interests.
32:13Constance RickettsTesla's proxy statement does not offer substantive evidence of how the voided 2018 award harm stockholder democracy or how its ratification will cure prior deficiencies and lead to a different outcome.
32:26Constance RickettsLikewise, the opposition to this proposal fails to show any evidence of an existing performance based component integrated into the executive pay structure that respects established human rights, due diligence processes and principles.
32:40Constance RickettsInstead, it cites its human rights policy that is wholly unrelated to executive compensation and doubles down on the argument that the currently contested executive pay structure is the only means of motivation to achieve our company's mission.
32:56Constance RickettsThis commitment to the status quo essentially dismisses the ongoing controversies that Tesla must face and overcome, including softening sales, advancing competition, split focus in leadership, a 30% drop in stock price, reduced market cap, mass layoffs, human rights violations and ongoing legal challenges.
33:17Constance RickettsTesla's executives absolutely should be duly compensated for innovative and successful business. However, stockholder democracy allows us to oppose demands like 25% control of the company and the largest pay package in corporate American history.
33:33Constance RickettsVia further share issuance. We also have the right to vote for our leadership's compensation to be commensurate with financial and sustainability performance. This does not mean we do not respect our leadership's time, energy and contributions.
33:47Constance RickettsQuite the contrary, as it is our duty as stockholders to ensure long term viability and success for our company.
33:56Brandon Ehrhart (General Counsel)Thank you, Ms. Ricketts. The board's response is set forth in the proxy. Let's move on to the seventh stockholder proposal which is an advisory vote regarding committing to a moratorium on sourcing minerals from deep sea mining.
34:09Brandon Ehrhart (General Counsel)Our board is recommended against for the reasons set forth in the proxy. This proposal is proposed by AS you so, whose representative Elizabeth Levy has also recorded a pre recorded message.
34:24Elizabeth LevyGood afternoon Chairman, members of the Board, My name is Elizabeth Levy, representing as you sow, speaking on proposal number 12. We know more about the surface of Mars than we do about the bottom of the ocean.
34:39Elizabeth LevyEven so, a new industry is moving forward to exploit the deep sea. We believe this industry poses risks to Tesla now and into the future. Deep sea mining is the process of dredging the ocean floor to extract battery related minerals.
34:57Elizabeth LevyIt will indiscriminately destroy habitats and obliterate life in its path. Seabed mining could release carbon stores and toxic sediment plumes, poisoning marine food chains and disrupting sea life breeding and migration.
35:13Elizabeth LevyThe deep sea is complex and abundant with life. Its ecosystems are slow growing and fragile, with little to no ability to recover from outside disturbance. Plans are moving forward to launch the process for commercial scale deep sea mining with or without regulation.
35:32Elizabeth LevyTesla's membership in the OECD and IRMA mining protocols does not resolve this issue as neither currently applies to mining in the deep sea. Over 800 marine science and policy experts, 25 countries, 72 indigenous groups and 48 companies are calling for a ban, moratorium or precautionary pause on deep sea mining.
35:56Elizabeth LevyThis includes Tesla's competitors, BMW, Renault, Rivian, Volkswagen and Volvo. Even General Motors has stated it does not plan to use deep sea mine minerals. Our company's public stance on deep sea mining matters.
36:13Elizabeth LevyTesla is the face of the EV transition and its ambiguous position on deep sea mining could drive investment in this controversial industry. Conversely, a clear stance restricting Tesla's use of deep sea minerals can drive innovation in battery mineral tech, recycling and circularity.
36:32Elizabeth LevyWith these technologies, even the most ambitious future EVU scenarios could be met without harming the deep sea. Tesla's failure to take a stand on deep sea mining, combined with the fact that a former Tesla board director is now serving as a board member and special advisor to the CEO of the metals company, the very company leading the charge on deep sea mining raises concerns.
36:58Elizabeth LevySuch a relationship appears to imply that Tesla supports the metals company in its deep sea mining activities. Committing to a moratorium will clarify expectations and reduce reputational harm to the company, assuring customers and investors that Tesla will indeed wait until science shows deep sea mining will not cause significant or irreparable damage.
37:22Elizabeth LevyThank you.
37:24Brandon Ehrhart (General Counsel)Thank you, Ms. Levy. The board's response is set forth in the proxy. Please note that now is the final opportunity to submit any votes in order for them to be counted.
37:38Brandon Ehrhart (General Counsel)I declare that the polls are now closed.
37:50Brandon Ehrhart (General Counsel)Based on the proxies that we have received and the votes submitted at this meeting, I'd like to announce the results on a preliminary basis. With respect to the seven stockholder proposals, our stockholders have approved the recommendations of the Tesla board on all of them, except for Proposal 6 regarding director terms and Proposal 7 regarding simple majority voting.
38:14Brandon Ehrhart (General Counsel)Now moving on to the five Tesla proposals. First, our stockholders have approved the election of our two Class 2 directors, James Murdoch and Kimball Musk, to serve for a term of three years and until their respective successors are duly elected and qualified.
38:40Brandon Ehrhart (General Counsel)Second, our stockholders have approved executive compensation on a non binding advisory basis.
38:51Brandon Ehrhart (General Counsel)Third, our stockholders have approved the ratification of appointment of PricewaterhouseCoopers LLP as Tesla's independent registered public accounting firm for the 2024 fiscal year. Fourth, our stockholders have approved the redomestication of Tesla from Delaware to Texas.
39:27John CheveddenFifth.
39:27Brandon Ehrhart (General Counsel)And finally, our stockholders have approved the ratification of the 100% performance based stock option award to Elon Musk that was approved by stockholders in 2018.
40:14Brandon Ehrhart (General Counsel)The meeting is now closed. And with that, Tesla shareholders, let's welcome Elon Musk.
40:30Elon MuskThe goal is to give people hope that there is a path to a fully sustainable global economy. That we are on that path, that we are accelerating that path and that so long as we don't get complacent about it, it will happen.
40:47Brandon Ehrhart (General Counsel)This was really the beginning of the
40:49Elon Muskend of the Tesla bubble. I actually think the company could go bust.
40:53Deborah DavisTesla's Model Y is the world's best selling car, beating out Toyota's RAV4 and its Corolla model.
41:01Elon MuskRegarding FSD version 12, it's profound. The rate of improvement is rapid. It might be the biggest asset value appreciation in history. When you can do unsupervised full self driving, that just sounds like a story stock autonomous taxi.
41:16Elon MuskI mean can you really balance your checkbook with, you know, sort of pie in the sky predictions like that? If you ask the wrong question, the right answer is impossible.
41:27Elon MuskMy prediction is that a majority of Tesla's long term value will be optimus. And that prediction I'm very confident of. It's very rare a product comes along that is seemingly impossible, that experts said would never be made.
41:44Elon MuskAnd this is one of those times. Finally the future will look like the future. People say like, why'd you make it bulletproof? I'm like, why not? Energy storage deployments, the Megapack in particular reached an all time high in Q1, leading to record profitability for the energy business.
42:03Elon MuskThis is the machine that builds the machine and the factory is the product. And this building is the most advanced car factory that earth has ever seen. If you value Tesla as an auto company, this is the wrong framework.
42:18Elon MuskIf somebody doesn't believe Tesla is going to solve Autonomy, I think they should not be an investor in the company. But we will and we are.
42:36Elon MuskSam.
43:04ShareholderHey guys,
43:08Elon MuskWelcome, welcome to the Tesla shareholder meeting. And I, I just want to start off by saying hot damn, I love you guys. Yeah, we have the most awesome shareholder base.
43:26Elon MuskI mean it's just incredible. Any public company, it's incredible. Wow. So, and you know, we've got a great sort of shareholder meeting here to recap the achievements of the company and tell you about where we're going.
43:42Elon MuskAnd it's, I think it's incredible. I think we're not just opening a new chapter for Tesla, we're starting a new book. Okay.
44:00Elon MuskSo those of you who've been following Tesla closely understand like, you get it, you know, and so, so like, important thing is you get it. I mean it's so the, yeah, where things are going I think is just going to be absolutely mind blowing.
44:24Elon MuskYou know, we're obviously making great progress in solving the sustainable energy problem, you know, with electric vehicles, with stationary storage, with solar and then I Think in terms of the value of the company.
44:44Elon MuskAutonomy is just such a mind blowing thing that, like I said, you guys understand, but I think most of the world does not yet understand. So. And you know, in talking to a lot of the sort of big institutional investors, when they're often in like New York and they don't drive cars, so I'll be like, have you driven our car?
45:09Elon MuskHave you tried self driving, you know, the version 12.3? And they're like, oh, no, okay, well, you should try it. That would be a good thing to do. And if you just plot the points on the curve of how well autonomy is progressing and just believe the curve, it's headed towards unsupervised, full self driving very quickly at an exponential pace.
45:37Elon MuskIf you just, if you just. Yeah, it's, it's, I mean, yeah, so.
45:47Elon MuskIt's, it's, it's, it's really as simple as that. And in fact, I'd invite you to just do it personally. Just say, okay, with each release, how many miles do you drive before you have to intervene?
45:59Elon MuskIt's like literally that, that simple. And with each release you'll see that there's a, there's a big improvement. Big improvement. And it looks like an exponential. So. And it's very clear that that will actually go to the point where it is actually far safer than a person driving the car.
46:19Elon MuskSo. And I have some insight into, you know, the next releases because we've got basically for every release that's on the road, we kind of see what the next generation release is and a little bit about the release after that.
46:35Elon MuskSo we have some insight into where it's going. And it's really amazing. No question whatsoever that it will far exceed human safety. Yeah, no question.
46:52Elon MuskAnd I think, you know, I have mentioned this, but like, sometimes it's like helpful to sort of reiterate and connect some of the dots because, so, because sometimes people wonder, well, how do you go from this big fleet to actually monetizing the fleet in an autonomous situation?
47:15Elon MuskAnd it's actually a combination of like, it's like Airbnb and Uber to some degree. So like, there'll be some cars that Tesla owns itself. It's kind of like an uber fashion.
47:26Elon MuskBut then for the fleet that is owned by our customers, it will be like an Airbnb thing. You can add or subtract your car to the fleet whenever you want.
47:35Elon MuskSo you can say like, I'm going away for a week. Just one tap on your Tesla app, your car gets added to the fleet, and it just makes money for you while you're gone.
47:45Elon MuskYeah.
47:51Elon MuskSo you can say, you can add it to the fleet for a few hours, for a few days, for a few weeks. Whenever you want it back, you say, come back, and car will come right back.
48:03Elon MuskAnd I'm highly confident that it will far exceed the value, like the revenue made by the owner of the car will far exceed the actual monthly payment. And then Tesla will obviously take a rev share on that, but most of the money will go to the owner of the car.
48:18Elon MuskAnd this is actually going to work. This is what will happen. So you, I mean, mark my words, this is, this is simply a matter of time. Now, admittedly, I'm a little optimistic sometimes.
48:31Elon MuskYou know, I'm, you know, so I don't have complete lack of self awareness, but if I wasn't optimistic, this wouldn't exist. This factory wouldn't exist, you know, so,
48:52Elon MuskSo, you know, that's what my brother, who's awesome, he's here, just got reelected. No, sorry. This thing's.
49:02Elon MuskSo like a little anecdote
49:06John Cheveddenwhen we
49:07Elon Muskwere kids in school. My brother would tell me the, the wrong time for the bus so that I wouldn't miss the bus. And then I'd be upset with him, like, why'd you tell me the bus was going to come earlier than it was?
49:19Elon MuskAnd he's like, well, because otherwise you'd be late for the bus. This is an actual thing that would happen. So I guess I've been sort of pathologically optimistic from, you know, from birth, but that's the reason all this stuff is happening anyway.
49:34Elon MuskIt's like I got to be somewhat pathologically optimistic, but I do deliver in the end. That's the important thing.
49:50Elon MuskSo. Yeah, and it's really just going to be something else. I mentioned this before, but, like the. For Ark Invest, I'd recommend reading the Ark Invest analysis. That's the most accurate there may be, you know, more accurate ones, but the most accurate sort of analysis of the potential of autonomy, the most accurate that I'm aware of is, is Cathie Wood's Ark Invest.
50:18Elon MuskSo, and if I recall correctly, they, they predicted somewhere over a $5 trillion valuation for Tesla just based on vehicle autonomy, not counting Optimus. Yeah,
50:36Elon MuskYeah, I agree with that.
50:44Elon MuskSo, so I think, I think, I think just based on vehicle autonomy, we can, we can 10x more than 10x the value of the company. I believe that's what will happen.
50:56Elon MuskYeah, no, it's just, what do you know, it's, it's 4:20pm Just notice that. So yeah,
51:15Elon MuskSo I think that's actually, I think that's pretty accurate. But there's this. It actually gets way crazier when you think about the Optimus robot, which is really a humanoid robot that is intended to, you know, be able to do anything you want it to do, to be, you know, your companion.
51:44Elon MuskIt can be at your house, it can sort of babysit your kids, it could teach them great teacher, you know, it can do factory stuff. Like I think that the ultimate ratio of say, how many super useful humanoid helper droids do you want?
52:06Elon MuskLike, who doesn't want a C3PO, you know, you know, but a C3PO plus R2D2 plus, you know, plus plus
52:16Robyn Denholm (Board Chair)it
52:17Elon Muskwould be pretty awesome, I think, I think everyone in the world is going to want one, like literally everyone. And, and then there'll be obviously robots in industry making stuff.
52:31Elon MuskAnd so I mean, I think the ratio of humanoid robots to humans will probably be at least two to one, something like that. One to one for sure. So which means like somewhere on the order of 10 billion humanoid robots, maybe, maybe 20 or 30.
52:50Elon MuskAnd so then it's like, okay, well let's say, you know, you kind of make, let's say the build rate is, I think the build rate will be probably something ultimately like a billion a year.
53:02Elon MuskHumanoid robots, like actually. And if Tesla just has a 10% sure of that, and it might be a lot more than 10% and there's you know, who make like 100 million optimist units a year.
53:17Elon MuskI just, I mean for reference, the auto industry is roughly 100 million vehicles per year. So you know, sort of similar ballpark, at least within an order of magnitude.
53:29Elon MuskAnd I think we could make one for a cost of maybe at really high scale of about $10,000. It's smaller, it'll be less expensive than a car. So I mean I think if you sold for sell for $20,000 or something, this is at large scale volume, Tesla would basically make about a trillion dollars of profit a year from that.
53:56Elon MuskSo yeah,
54:03Elon MuskIf the price earnings multiple is say, I don't know, 20 or 25, something like that, that would mean a 20 trillion dollar market cap from Optimus alone and, and probably 5 to 10 from autonomous vehicles.
54:18Elon MuskSo like, I think it's actually conceivable it's when within the realm of possibility for Tesla to achieve a valuation 10 times that of the most valuable company today.
54:41Elon MuskSo when I say this is like we're starting a new book I mean, it's going to be the best book. Next level. Next.
54:50John CheveddenNext.
54:50Elon MuskNext. Next level. We need to make sure these robots are nice to us and, you know, that's very important.
55:03Elon MuskSo, anyway, so with that, let me get into the presentation. Blah, blah, blah, blah, blah, blah, blah, blah.
55:17Elon MuskOh, man. I think it might be worth us just putting a word limit on future shareholder Tesla proposals. It's like you can't have a novel length. It's correct. We can't have a whole novel as a Tesla proposal.
55:40Elon MuskSo as you can see, our impact is accelerating. We're starting to make a real noticeable dent in carbon emissions. So we're really, you know, making a lot of progress towards achieving our goal of sustainability.
55:54Elon MuskAnd one of the effects of autonomy is actually is going to be an even greater effect on carbon emissions because I suspect that we'll go from passenger cars having about 10 hours of usage per week, about an hour and a half per day, to probably a third of the hours in the week, maybe 50, 55 hours, which means the same car will be used five times more often.
56:22Elon MuskSo you need a certain amount of resources to make the car, but it'll have five times the usage. In my opinion, I think that's quite likely, which will be an even more dramatic impact on carbon emissions.
56:36Elon MuskSo, you know, we care a lot about sustainable manufacturing. Our factories are beautiful. Like you walk around the factory, it's actually, you know, contrary to these, like what you read in the press, it's like a good vibe in the factory, like people are smiling and happy.
56:54Elon MuskIt's like, it's nice. So,
57:07Elon MuskSo, yeah, so, I mean, we do care. We actually do care a lot. It tells about doing the right thing and we, you know, we're not going to be perfect, but we do care a lot about doing the right thing.
57:20Elon MuskSo our vehicles are water efficient, energy efficient. You know, we try whenever possible to use renewables for powering the factory and, you know, do our best to do the right thing.
57:36Elon MuskOur batteries are lasting a lot longer. I get too many things in my hand anyway. Batteries are lasting a lot longer, which is. Which is good. Safety is good in the factory.
57:54Elon MuskWe're improving the affordability of EVs. You know, model Y is comparable to BMW X3, but its actual cost of ownership on a monthly basis is much lower. We were number one in EVs globally last year.
58:10Elon MuskSo, yeah,
58:19Elon MuskSo, yeah, so let's see. Congrats to the Tesla team on making 6 million vehicles all time.
58:36Elon MuskSo, I mean, the Tesla fleet is really becoming very substantial. I mean it's going to be 7 million vehicles by the end of this year. Over 7 million vehicles.
58:44Elon MuskSo.
58:50Elon MuskWe had. And our factory in Fremont is currently the highest volume auto factory in North America. So. And we broke the prior production record from when it was new me.
59:02Elon MuskSo it's, it's actually pretty wild that we have a giant car factory in the San Francisco Bay area. It's like it's not exactly the cheapest place to have a car factory.
59:12Elon MuskIt's like that in the Swiss Alps or something, you know. But we still managed to make great cars at high volume and that's a testament to the great team we've got in Fremont.
59:23Elon MuskSo congrats to the Fremont team.
59:35Elon MuskAnd a lot of people were saying the cybertruck is like fake, it's never going to come out, you know, and now we're shipping a lot of cybertrucks. We hit a weekly record of 1300.
59:56Elon MuskAnd you know, I think with the cybertruck it really is something special.
1:00:01ShareholderLike
1:00:03Elon Muskpeople sometimes have like different opinions on the cybertruck but if you really want to know if there's a, if something is cool, if it's a great product, like show it to a kid, okay?
1:00:17Elon MuskLike no filter, okay? The kid's got like no filter, like a five year old, six year old, something like that, or even three year old and say which car do you like?
1:00:27Elon MuskCybertruck. So it's like that's how you know, and it's finally something that it just looks like the future. It's. And it drives so well, you know, it's comfortable. It's just a fantastic product.
1:00:49Elon MuskI think it's, I think it's our best product and it's a lot of innovation. It's got a 48v low voltage system finally instead of 12v 800 volt drivetrain, the world's biggest castings, you know, it's bulletproof.
1:01:08Elon MuskAll the cool things can, you know, output F350 diesel, which is a very impressive truck. And it can, you know, it can do a quarter mile faster than a Porsche 911 while towing a Porsche 911.
1:01:24Elon MuskSo that's insane. So yeah,
1:01:36Elon MuskIf you think about it like how often do companies make products that move your heart that are really special? It's so rare and I think this is one of them.
1:01:50Elon MuskYeah.
1:01:59Elon MuskAnd we launched the upgraded 3, which is actually a fantastic car. I recommend trying it out. It's, it's really a great car. And it's only $216 after a gas Savings like total cost of ownership is basically $200 something dollars when compared to a gasoline car, similar gasoline car.
1:02:19Elon MuskSo it's really a great deal and a fun car. And the performance, model three performance is it's like, you know, fast and Porsche 911, it's just a great, great car.
1:02:38Elon MuskSo yeah, so yeah.
1:02:50Elon MuskAnd of course Model Y became the best selling vehicle globally and this is something that we predicted. So you know, I think I said in 2022 Model Y would be the biggest car in the world by dollar volume sales and at 2023 it would be the biggest in unit volume.
1:03:11Elon MuskAnd it was. And again this year it will be the best selling car on earth. So.
1:03:27Elon MuskAnd we obviously we've got the Tesla Semi. You know, we're in low volume production of the Tesla semi and just last week I approved the plans for volume production of the Tesla semi.
1:03:53Elon MuskSo we're going to make a lot of semi trucks. We're going to start off with yeah, it's something, I think it'll actually move the needle financially. It's not like it's not a small, small thing.
1:04:07Elon MuskAnd the thing about like commercial vehicles is that companies that use them are super objective. It's not like it's actually, I mean obviously we're going to make it have cool style and be an awesome car.
1:04:20Elon MuskBut for commercial vehicles the companies that make the buying decisions, they just look at it say like what are the numbers? Like is this cost less to transport or cost more to transport than than say a diesel truck?
1:04:33Elon MuskAnd the thing is the economics are much better than diesel truck. It's kind of basically a no brainer. If you're a transport company, you don't use an electric, that Tesla electric semi, you're just losing money.
1:04:44Elon MuskWhy would you do that? Do not like money. Okay, but if you do like money then I recommend using the Tesla semi. And so,
1:05:05Elon MuskSo I think this is, this is really going to actually sell at a scale that people will be surprised at and, and will actually move the needle financially and do a lot of good.
1:05:13Elon MuskAnd also for, for CO2 and, and sustainability because semis are driven all the time actually even at, at much smaller numbers they have a, a very big effect on total carbon emissions.
1:05:28Elon MuskSolved. So obviously we've got some new, new products that we're working on under the
1:05:38Shareholdercovers
1:05:40Elon Muskand I think these, these are, I think these are going to be pretty special. So you know, some of them, I think people maybe at first may think oh it's not going to be that amazing but just wait it will be so,
1:06:10Elon MuskSo our supercharged network is continuing to grow. You know, rumors of the death of a supercharger are greatly exaggerated. We are in fact continuing to grow the supercharged network significantly.
1:06:25Elon MuskIn fact this year I think we'll put more, deploy more superchargers this year that are actually working than the rest of industry combined, just FYI. So.
1:06:44Elon MuskNow we are going to be more careful about like you know, the capital efficiency of where we deploy superchargers. But for sure, any place that has congestion, any sort of missing parts of the map that we're missing, we're going to put the superchargers there.
1:07:00Elon MuskSo even for the remainder of the year we expect to spend about half a billion dollars on, on supercharger deployment. So it's very significant. It'd be a well spent half a billion.
1:07:11Elon MuskSo this is, you know, it's a lot. So, and we're, this is actually not showing a bunch of new markets that will be opening up later this year and next.
1:07:24Elon MuskSo we're obviously what we want Tesla to be worldwide and there's a lot of countries that we, you know, have zero to very few Teslas and we obviously, we want Tesla everywhere.
1:07:35Elon MuskSo there are a lot of new markets that we're going to open up later this year and next. We're also opening the Supercharger Superchargers to other companies with the, that's the adapter to the old somewhat, somewhat clunky connector.
1:07:57Elon MuskBut our goal is to be helpful to other car companies. So any other car companies that are going electric, we do want to, we do want to be helpful to them with our supercharged network.
1:08:07Elon MuskSo we're providing them with adapters and enabling them to have access to the Tesla supercharging network because we think it's better to do that than to create a walled garden that inhibits EV growth.
1:08:30Elon MuskThere's a bit of latency here and we're also innovating a lot in battery production with the 4680 that's built right here. And it is, it's a hard problem. You know, like there are entire companies that just make battery cells.
1:08:46Elon MuskThat's all they do. And, but we're making good progress. Like all the cybertrucks that you see use the Tesla 4680 cell. And we have a clear path to the 4680 being, we think probably the most competitive cell from its, from a manufacturing efficiency standpoint.
1:09:08Elon MuskAnd so it's, it's, but it is, it is a hard Problem. I have to say there's, there's quite a lot of brain damage required to be good at cell manufacturing.
1:09:18Elon MuskIt's like a brain damage hide. But I think it does, it does give Tesla resilience in the face of if there are changes in the, I don't know, geopolitical situation somehow.
1:09:34Elon MuskBut it's good to have some independence in cell manufacturing. So, yeah, we're making steady progress. And we also have the cathode refinery, which you can see behind the, the main factory.
1:09:50Elon MuskSo you can sort of see it in the picture there. That's the cathode refinery. And then we've got the lithium refinery in South Texas. And so we're just making sure we've kind of got the piece of the puzzle.
1:10:03Elon MuskAnd I mean, if you were to look at sort of a video of how Tesla does say cathode and lithium refining and how the rest of industry does it, it's night and day.
1:10:14Elon MuskI mean you can sort of eat off the floor in the, in the Tesla refinery and I would not recommend doing so in the others. So, you know, it's, it's really, we're definitely going very, very vertical here,
1:10:29Dr. Kristin Hullbut
1:10:29Elon MuskI think this is a, it's a wise investment that will, that will pay off more than people realize. So.
1:10:51Elon MuskI don't think this thing's working. So this year we're also on track to complete a massive number of energy deployments. So that is a gigantic increase in deployment capability.
1:11:09Elon MuskSo we really, we seem to be tracking to sort of a 2 to 300% year over year growth in energy storage, deployment and stationary pack. So it's giant. And the limiting factor really is being able to build more megapacks and build more Powerwalls.
1:11:30Elon MuskSo we're ramping up production of the Powerwall 3, which is really a game changer for, at the personal level, Powerwall 3. It usually takes about three iterations of any given technology to really, for it to be something where it's like, okay, now we're really hitting the sweet spot.
1:11:49Elon MuskSo Powerwall 3 is like an epic product. The Megapack is also,
1:11:57ShareholderI'd call it
1:11:57Elon Musksort of iteration two of Megapack is, is also an FA product with, with the Megapack 3, which is, I don't know, probably a couple years away, we, we'll start actually absorbing more and more of the substation of the, of the, of the sort of power electronics.
1:12:17Elon MuskSo because I sort of think you want to get to the point with the Megapack where you can literally just take the high voltage power Lines and plug them in.
1:12:24Elon MuskJust there's no substation. We just plug them in. Just drop them down and drop it down and plug it in and now it works. Which is like mind blowing for the utility industry by the way.
1:12:38Elon MuskLike they're like what? Yeah, just plug the wires in and it'll work for very high voltage. So that I think is actually going to be a major. So this is anyway, so yeah, this is, this is great, excellent work by the energy storage team.
1:13:08Elon MuskServices and other are also looking good. So we're actually now making money on the services and other stuff. So this is kind of a big deal, right? Yeah. So let's see.
1:13:27Elon MuskYeah, and Tesla's obviously way more than a car company. You know we do a lot of software at Tesla, you know about, I don't know, roughly half the or a very huge percentage of the engineering we do is actually software engineering.
1:13:44Elon MuskSo Tesla's I'd say as much a software company as it is a hardware company. This is a very big deal because car companies are not software companies normally. So this, this matters a lot.
1:13:55Elon MuskSo things like our order better software for energy storage, all the software that controls the cars, the megapacks, the power walls of the solar obviously for AI and, and full self driving or big deal insurance service and collision that Tesla also writes a lot of software internally that, that helps that like we call like the Tesla operating system internally that is head and shoulders above what any other company has.
1:14:27Elon MuskI think probably better than any Fortune 500 company. The Tesla internal software is, it's just way better. So it's, yeah, it's just far more than what people normally think of as a car company.
1:14:44Elon MuskAnd Tesla is also the world, the leader in real world AI. So there's really this is a big deal like Tesla is ahead of Google Matter, you know, opening anyone on real world software actually look, taking in video and making decisions based on video.
1:15:06Elon MuskNo one can, no one is even close. And it's getting better I'd say with each passing month, if not each passing week. So yeah.
1:15:30Elon MuskAnd, and it's also worth noting that Tesla is actually pretty good at chip design. So the, the AI inference chip that's, that was designed by Tesla that's in cars.
1:15:42Elon MuskWe had sort of our hardware three AI inference cars made in the, you know, over the past year have the hardware 4. We've just completed design on hardware 5 which we're now calling AI5 because it really is there still actually is not a chip from Nvidia or from.
1:16:06Elon MuskAnd I have a lot of Respect for Nvidia from any company that we would prefer to put in our car that is better than what we have in the car.
1:16:14Elon MuskSo,
1:16:22Elon MuskSo we started from scratch in chip design, just says we started from scratch in AI software and have the best real world AI software and the best AI inference chip in the world from nothing.
1:16:37Elon MuskSo this is, you know, a big deal.
1:16:44Elon MuskAnd the capability of the chips in the car is dramatic. I mean right now all the cars are actually training. We have hardware 4 run hardware 3 in emulation mode.
1:17:00Elon MuskSo we'll continue to make significant progress in hardware 3. But later this year we'll actually bifurcate, continue working on hardware three, training on hardware three, but then do separate training on hardware four.
1:17:16Elon MuskThat'll be the sort of training cluster that we're building at the south side of the Gigafactory. And that'll be dedicated hardware for video and inference. And you know, so the hardware 4 has cameras that have about four or five times better resolution.
1:17:36Elon MuskAnd depending on how you count the sort of hardware 4, it's about anywhere from three to eight times better than hardware 3. But everything you're seeing thus far is just hardware 3.
1:17:49Elon MuskAnd we still have a long way to go before we reach the limits of hardware 3. So hardware 3 I think will do amazing things, but hardware 4 I think will probably do about 5 times better.
1:18:02Elon MuskThen hardware 5, which comes out in about 18 months or so is 10 times more capable than hardware full. It's like. So if you know, Nvidia hardware, it's, it's sort of a B200 class computer.
1:18:20Elon MuskSo you know, that's like this. So what we'll just progressively do is improve how many nines of reliability the car gets. And I, and, and then of course that will go into Optimus as well.
1:18:37Elon MuskSo the same chip will go into, you know, hardware four will go into opt. Is, is an Optimus hardware AI5, which we're calling switching from hardware five to AI5 will be in Optimus and in, in all cars in about 18 months.
1:18:54Elon MuskAnd it's really just a staggering amount of compute. And it's very, it's very power efficient compute. So it's, it's got to be because if you're in a mobile application like a humanoid robot or a car, you can't just be sucking down 10 kilowatts, you know, like you can in a data center.
1:19:11Elon MuskSo you've got to be very power efficient. So the, you know, sort of hardware 3 and 4. Only a few hundred watts. Yeah, yeah. This is hard.
1:19:32Elon MuskNow, hardware 5 will be able to go probably up to about 7 or 800 watts, but it'll power fluctuate contingent upon the complexity of the scene that it is in.
1:19:44Elon MuskSo if it is in a parking lot stationary, it's like, you know, compare. You know, don't have to think very much just like a person. Like, if you're in a complicated traffic scenario, you've got to think a lot more than if you're just cruising along, you know, on an empty road.
1:20:02Elon MuskBut something that I think is potentially interesting down the road is like, at some point, the Tesla fleet, I think, will probably be, you know, over 100 million vehicles.
1:20:12Elon MuskAnd if each vehicle has a kilowatt of efficient inference compute, I think there's a, there's, I think there's sort of an Amazon Web Services AWS type opportunity. Because if you've got 100 million vehicles with a kilowatt of efficient inference compute, you've got 100 gigawatts of compute, like 100 gigawatts of computers a lot.
1:20:39Elon MuskAnd it's distributed all over the world. So even so, when the car is not in autonomous mode, which I think probably is, you know, doing robotaxi work, maybe 50, 60 hours a week, but at 100 hours a week, it's, it's not, it's probably stationary.
1:20:58Elon MuskSo. So there's 100 hours of 100 gigawatts of inference compute, which I think we should use. Why not? You know, when people looked at Amazon, which started out, I would say, as an online bookseller, and it's on, you
1:21:16Robyn Denholm (Board Chair)know,
1:21:19Elon Muskhas grown to be like this incredible place where you can buy anything, and then they, and then Amazon Web Services, like, well, they got all these computers that only really see peak usage sometimes, but what are they going to do when it's not peak usage?
1:21:38Elon MuskAnd sometimes Amazon servers are down like 10%. So that's when they said, well, let's do Amazon Web Services. And then Amazon Web Services became more valuable than the entire rest of Amazon.
1:21:50Elon MuskAnd, you know, I think there's, there's some kind of opportunity there that's pretty significant for Tesla down the road. You know, again, that's really, nobody's really factoring that in, but I think that that actually will be quite significant.
1:22:08Elon MuskWe also are no longer compute constrained for training. So I check in with the team. It's like, is there anything we could do to improve the pace of progress with respect to training and inference?
1:22:23Elon MuskAnd currently that is not the limiting factor. In fact, the limiting factor right now is that the amount of miles between interventions is so long that it takes quite a while to figure out which version is better than the other version because none of them are requiring any interventions.
1:22:41Elon MuskSo it's like, you know, if you start getting to like thousands of miles between interventions or you're like 10,000 miles to get an intervention, then like well the average person only drives about 10,000 miles in a year.
1:22:53Elon MuskAnd if it's in an urban environment and the Average speed is 20 miles an hour, I mean our professional test drivers get pretty bored frankly. You know, they're like okay, I drove all week and there was no intervention.
1:23:07Elon MuskLike the highlight of the week would be like yes, an intervention. Finally it's like getting to that point. So this is where actually having a giant fleet is extremely important because we can deploy a new FSD model and run it in shadow mode and see what, see how well it performs.
1:23:29Elon MuskYou know, compare how the human drives the car versus the the new self driving build and, and then analyze that delta in shadow mode like the shadow knows or doesn't know as the case may be.
1:23:43Elon MuskAnd, and then be able to assess by getting billions of miles very quickly with the giant fleet like that. Basically that, that data engine is incredibly helpful. Like actually it's not possible to solve the self driving problem without having millions of vehicles on the road.
1:24:03Elon MuskSo, so that's actually the, it's like figuring out clever ways to test which how good the next build FSD build is is actually a limiting factor right now. And then of course like I said, we are building another training data center right here which will be dedicated to hardware 4 training.
1:24:27Elon MuskSo we'll bifurcate hardware 3 and hardware 4 training later this year. We'll keep improving hardware 3, but we're going to uncork the full capability of hardware 4 as well.
1:24:39Elon MuskSo yeah,
1:24:48Elon MuskI think most people here have tried out version 12.
1:24:55Elon MuskWe did say like unsupervised full self driving. Full self driving would be version 12. So we are actually just keeping the version arbitrarily at 12 and then like calling it 12.4, 12.3, 12.4, 12.5, but it's actually really like version 13 version 14.
1:25:14Elon MuskBut anyway this is an arbitrary designation. So 12.4 is actually like a whole different version than 12.3 and 12.5 is a whole different version 12.4. So you'll see really giant improvements I think sometimes factor of 10 improvements it between successor versions.
1:25:45Elon MuskAnd then as I mentioned, the way it'll work for the existing fleet is you'll Be able to add or subtract your car to the fleet as you'd like. And there will also be Tesla owned cars.
1:25:58Elon MuskSo it'll be a combination of like Uber plus Airbnb. But it'll be pretty wild that there'll be a software update and then the whole fleet suddenly becomes accessible. It's like Suddenly you've got 7 million, 10 million cars that can ultimately tens of millions of cars that can do autonomous driving and instead of being used 10 hours a week, can be used 50 or 60 hours a week.
1:26:38Elon MuskSo it's pretty wild to just, you know, be in Palo Alto with a bunch of cubes and then a humanoid robot just walks past.
1:26:49Elon MuskWe've made a massive amount of progress with Optimus in a short period of time, from someone pretending to be a robot dancing in a suit, to a pretty hodgepodgey robot, to a robot that is actually doing useful tasks in the factory today.
1:27:06Elon MuskSo we have two Optimus robots in our Fremont factory that are doing basically this task which is taking cells off the end of the line and placing them in a shipping container.
1:27:17Elon MuskAnd yeah, we actually have quite a few of these cruising around our offices in Palo Alto. So there's, and I think we've got kind of like one major hardware revision which should be done by end of this year or early next before.
1:27:39Elon MuskAnd then we'll move into a limited production next year of Optimus limited production for use in our factories where we'll test out the product, kind of, you know, you know, as I say, sort of eat our own dog food or whatever the electronic equivalent of that is.
1:27:56Elon MuskSo, but I, I think like next year, I, my prediction is next year we'll have over, over a thousand, maybe a few thousand Optimus robots working at Tesla.
1:28:17Elon MuskAnd, and, and things are going to scale up very rapidly from there. So we'll iron out the bugs. It'll like, the degree of autonomy will be radically better. You'll just literally be able to talk to it and say, please do this task or I'm going to show you something.
1:28:36Elon MuskNow do that, the thing that I'm
1:28:37Shareholdershowing you
1:28:41Elon Muskand you know, get to the point where it can watch a video of something like a person and then learn just by looking at that video and do that task.
1:28:52Elon MuskSo, yeah, so really it's going to be quite something and I'm confident of the prediction that there will be more like the ratio of humanoid robots to humans will be greater than one to one, so that there'll be more than 10 billion humanoid robots in the world.
1:29:19Elon MuskProbably 20 or more. And Tesla is going to be by far the leader in that. You're seeing a lot of robot startups, but I think it's actually very challenging to do optimus as a robot startup because what we found to make optimus work, we've had to design from first principles, from scratch every part of the robot.
1:29:47Elon MuskSo the motors, the gearbox, the sensors, the power electronics, the communication system, everything had to be done from scratch. We found that there's basically nothing, there's no supply chain.
1:30:01Elon MuskSo even though there are many electric motors made in the world, there's no supply chain for the types of motors and sensors and gearboxes that are needed for a humanoid robot.
1:30:13Elon MuskAnd I mean, what you're seeing here is our current generation hand and arm, but our next gen, which has 11 degrees of freedom, our next generation has 22 degrees of freedom.
1:30:24Elon MuskIt will be able to play the piano. So it's really like, wow. Now, of course, like I said, we need to make sure you don't have the Terminator scenario.
1:30:34Elon MuskThat's very important. So safety of the humanoid robot will be very important. But because it requires so much ground up design, designing every motor, gearbox, sensor, power electronics from scratch, it's very hard for a startup to, if not impossible for a startup to replicate that.
1:30:55Elon MuskBut at Tesla, we have the world's best electrical engineering. I think we've got the world's best mechanical engineering for gearboxes and for electric motors, power electronics. So we have the resources to do that.
1:31:11Elon MuskIt applies quite well. And then you also have to have the, the brain, you need the, you need the, the, the, you need a power efficient inference computer which we've got for the car and we'll be using an optimus.
1:31:25Elon MuskYou need AI, real, you need to be the best in real world AI and Tesla is the best in real world AI. So you need all of these, you need a very strong hand of cards in order to make a compelling robot.
1:31:39Elon MuskAnd then you also need to be very good at scale manufacturing. So in order to have the robot not cost like hundreds of thousands of dollars, in order to make it cost like 10 or $20,000, actually need to design for manufacturing and be very good at manufacturing.
1:31:56Elon MuskAnd in my experience, prototypes are easy compared to volume manufacturing. Prototypes are easy. Production is hard, relatively speaking. So Tesla has the production capability, it has the engineering capability and it has the AI hardware and software capability.
1:32:16Elon MuskAnd even the most optimistic estimates that I've seen for Optimus, the Optimus optimist, I think undercount the magnitude of what this Robot will be able to do. You know, as I said at the beginning of the, of the presentation, I, you know, I agree with the Ark Invest analysis that autonomous transport is called sort of a 5 to 7 trillion dollar market cap situation.
1:32:54Elon MuskOptimus, I think is, is a 25, literally 25 trillion dollar market cap situation.
1:33:01Elizabeth LevySo.
1:33:09Elon MuskNow I don't want to, I don't want to trivialize, trivialize what's necessary to get there. I mean, it's an immense amount of work that is required to get there.
1:33:16Elon MuskLike super difficult. But we are moving very fast down that road. We're going to make it happen. So thank you.
1:33:35Elon MuskI guess with that we can go to Q and A. Sorry. Yeah. Oh, I guess we've got mics lined up. Time for the mic.
1:33:56Brandon Ehrhart (General Counsel)Hey, Elon, last year I thanked you
1:33:58Elon Muskfor making the world a better place for my son to live in. And I wasn't clear in particular, I was referring to what you've done for the First Amendment and our rights.
1:34:08Elon MuskThank you.
1:34:17Brandon Ehrhart (General Counsel)History will not forget it. And the sacrifices you made and the
1:34:20Elon Muskrisks you took will pay off and have paid off.
1:34:23John CheveddenThank you.
1:34:27Elon MuskI very much appreciate that. You know, I think it's, you have to say, like, why was it, why was the First Amendment so important is because, you know, people came here from places where if they spoke their mind, they'd be put in prison or killed or just shut out from society, ostracized.
1:34:44Elon MuskSo freedom of speech is absolutely fundamental to a good future. And yeah, that's the reason for, you know, acquiring Twitter and trying to just making it a free speech platform.
1:34:56Elon MuskAnd I think it's, it was like, I think very important to just the future of civilization. So thank you.
1:35:16Elon MuskHey, Elon, my name is Ronnie. I'm on your right side. How's it going? Hey, I work for Tesla Sales in Orland Park, Illinois. And I was always wondering, do you think Tesla could ever move forward towards bundling software as like a package to, you know, possibly increase take rate for fsd, you know, maybe bundle it with premium connectivity and future software options?
1:35:47Elon MuskI think we definitely want to encourage people to try fsd. And one of the things that sort of, I think probably makes sense is that when we have a significant improvement, every time we have a significant improvement in fsd, give people, you know, give all customers a, like a two week free trial.
1:36:05Elon MuskSo, like, hey, we've made an improvement to FSD. You know, try it for another two weeks. You know, with, with, with 12.4, we finally get rid of the steering wheel nag, which I know is driving people crazy.
1:36:19Elon MuskLike, like, like thank heaven for small mercies. So you know, even just something like that, not having the steer steering wheel nag and obviously having a far lower intervention count, like far more miles between interventions.
1:36:36Elon MuskSo I think we'll, you know, I think keep sort of offering people free trials of FSD every time we make a significant improvement.
1:36:51Elon MuskOh, sorry. Yeah. When you hear the loud, the speakers you're like, ears don't work, you know.
1:36:58ShareholderGood afternoon.
1:36:59Elon MuskYeah, two questions actually. First, after $56 billion, you can afford to probably take your kids to Disneyland now, is that where you're going?
1:37:13Elon MuskWell, I mean, by the way, it is worth emphasizing that is Tesla stock that I have to own for five years. So you know, like it's like it's not possible to like, not actually cash and I can't cut and run, nor would I want to, but.
1:37:29Elon MuskAnd I've actually been to Disneyland Disney World many times with kids. It's a little tough for me to go these days without causing a ruckus. You know, maybe I should just like wear a Mickey Mouse outfit and just go and you know, pretend I'm like one of the.
1:37:50Elon MuskSo as we work on autonomy and we're getting to that threshold where things are getting to a seriously advanced level, eventually there are going to be some harsh consequences.
1:38:03Elon MuskPart of breaking through.
1:38:04John CheveddenRight.
1:38:05Elon MuskAnd I'm just curious where your mind is at on that and have you thought about, you know, some of those early consequences that we're unfortunately going to have to have in order to have a better, safer future?
1:38:18Elon MuskI'm just wondering, you mean like scary robots or what?
1:38:22ShareholderNo, no, in auto.
1:38:23Elon MuskIn auto, in the cars with full self driving. Okay. Like we've seen some companies that there's been some unfortunate mishaps and oh yeah, just straight up like closed shop and you know.
1:38:35Elon MuskYeah, that's not the plan. But those are real consequences of, of developing this technology. And I'm just wondering where your mind is at on that. Yeah, well we are, we do try to be very careful with the deployment of fsd and you know, we do have a lot of cars.
1:38:53Elon MuskSo what? Like inevitably when there are a lot of cars and you've got, you know, billions of miles, you do have the law of large numbers where okay, there's a small chance of something bad happening.
1:39:05Elon MuskBut when you look at the sort of safety per mile, because we've got a lot of miles, it's very clear that the safety per mile is better than human driving.
1:39:14Elon MuskSo, so when, when we, you know, we can show that to regulators and obviously make our case to the public and say like, actually, you know, human driving is not perfect.
1:39:24Elon MuskYou know, there's, there's a person killed roughly every 80 million miles. So like, like 35, 40,000 people are killed every year in the US from auto accidents. What matters is like, are we making that number smaller?
1:39:36Elon MuskAnd as long as we're making that, that number smaller, we're doing the right thing. Thank you.
1:39:45ShareholderHey Elon, this is Bash. I have one question.
1:39:50Elon MuskSure.
1:39:50ShareholderSo we know that, we know that. We love you all. We love from our bottom of the heart. We love you so much, Elon.
1:39:59Elon MuskThank you.
1:39:59ShareholderMy question is, my question is like, we all know Tesla will be the most valuable company in the world one day.
1:40:07Elon MuskYeah.
1:40:08ShareholderWe just want to know if you have any prediction when and what is the inspection point. When, when we can say this is the inspection point is, is it solving the FSC or is it like Optimus on ground will be the point from your, you know, perspective?
1:40:24Elon MuskWell, as I mentioned before, I think it's worth looking at the,
1:40:29John Cheveddenyou know,
1:40:30Elon Muskthe Ark Invest analysis, I think that is the most accurate analysis. Their prediction is I think five to $7 trillion by 2029 market cap. So more than 10 times what things are today in five years.
1:40:49Elon MuskI think that is accurate.
1:40:51ShareholderThank you. Thank you.
1:40:54Elon MuskHey Elon.
1:40:56Constance RickettsHey.
1:40:56Brandon Ehrhart (General Counsel)Huge fan.
1:40:57Elon MuskAnd I think history will show that
1:40:58Brandon Ehrhart (General Counsel)you've had a profound impact on humanity.
1:41:01Elon MuskSo I think that's just given. And just a couple of questions. I guess I fixed my Tesla addiction
1:41:07Brandon Ehrhart (General Counsel)by putting cars on Turo and I found that about half my renters the first time they're driving a Tesla and
1:41:13Elon Muskthen the other half really want to buy one after they've tried it out. So I guess a couple questions.
1:41:19Brandon Ehrhart (General Counsel)When could we expect maybe the deferral program to come back? If it would come back? And could we also get a passenger
1:41:28Elon Muskvan, like a 12 passenger van sometime soonish? I'll add that to my list. So the, yeah. So the referral program.
1:41:46Elon MuskYeah, I think we'll re examine the referral program probably next quarter and like it is very important to sort of look at the, what is the fully considered cost of a Tesla?
1:42:04Elon MuskSo with the referral program it effectively increases the price of the car. So you know, is the price increase what is better for the end customer, a slight price increase because of the referral program or not?
1:42:18Elon MuskBut I think we examine that, I think in, you know, next quarter and, and see if it, see if it makes sense. I think some Kind of referral program just makes sense.
1:42:28Elon MuskAnd, you know, but I think for a lot of people, like, by far, like, by far the biggest thing we see is that people just can't afford the car.
1:42:37Elon MuskThat's the biggest thing. Like, that's the limiter on demand. You can imagine in the limit, if there was, say, you know, an 18, like, if model Y costs, like less than $20,000, it was still, like, probably 5 million units.
1:42:53Elon MuskLike, it'd be insane. So now that's not feasible, you know, today. But I think working on figuring out ways to make more affordable vehicles is really the game changer.
1:43:08Elon MuskLike, for. For most people, it is really not a question of whether they want a Tesla. They do want a Tesla. They simply do not have enough money to afford one.
1:43:17Elon MuskSo we have to make it affordable. That's essential. Thank you. Hey, Elon. I just wanted to introduce myself. My name is Hamza. First off, thank you for introducing me to Anrabek.
1:43:29Elon MuskHe and I are now, like, close, thanks to you, and I moved to Austin thanks to you. So my question is basically for FSD transfer. I think that should be something that should be ongoing.
1:43:41Elon MuskI think not only on the benefit of you for getting more people on the floor fleet and getting, you know, statistics and info, but also as Tesla owners, it makes us want to get the next model and transfer over.
1:43:52Elon MuskYou know, for instance, the thing that's been holding me back is wanting to wait for the FSD transfer again. So is there a reason why you haven't implemented that for, like, ongoing time?
1:44:02Elon MuskIt is pretty complex for us to do this. It sort of adds a fair bit of complexity to the sales process. But, yeah, and it is tough because we've got to earn revenue somehow.
1:44:21Elon MuskSo, you know, transfer is tough.
1:44:29Elon MuskSorry, one more quarter. Okay, one more quarter. All right, you got it.
1:44:40ShareholderOne more quarter.
1:44:42Elon MuskAll right. So, yeah. All right. Oh, Elon, thank you for hosting us. If you can see me, I'm trembling uncontrollably. Really look up to you. Shareholder, consumer, you know, tripled my humble, tiny little portion of your shares the last two days.
1:45:08Elon MuskJust being engaged, knowing we're coming here and appreciate you hosting shareholders, and it just means so much to us. You're welcome. You're an absolute idol. This question comes because I care about you as a human being, but in the context of being a shareholder, unlocking these values of Optimus, we need you.
1:45:30Elon MuskAnd just with all the global uncertainty, you're so high profile. Just want to make sure you're doing everything to take care of yourself. Safety and health for the future of the company.
1:45:43Elon MuskI say that because I care about you as a person. But since this is a shareholder meeting in the spirit of shareholder value. Well, thank you. I appreciate the kind sentiments.
1:45:55Elon MuskYeah, I think I probably need to work out and you know, and like not get assassinated or something, you know, I mean, it is getting a little crazy these days, you know, like to first approximation, the probability that a homicidal maniac will try to kill you is proportionate to how many homicidal maniacs hear your name.
1:46:21Elon MuskOkay, so they hear my name a lot. I'm like, okay, I'm on the list, you know. So, yeah, so we actually did have two homicidal maniacs in the last roughly seven months come to aspirationally try to kill me and a bunch of other people.
1:46:39Elon MuskSo it's not just me. And there wasn't like an actual issue that they articulated. They were just in the homicidal maniac career. So. And so I do need to be kind of careful.
1:46:57ShareholderIt does.
1:46:57Elon MuskWhich is not great because it like forces me to be a bit more sort of standoffish, you know, and you know, like, so now like, I've like stopped signing things because just, you know, something.
1:47:10Elon MuskBecause like, that would be a sure way to like homicidal maniac, I'll just sign something and then shoot them type of thing. So then I, you know, I have to be more standoffish and stuff, which I prefer not to be.
1:47:21Elon MuskBut it seems wise, I think, like John Lennon who was like singing about like, hey, can't we all just be nice to each other? And then he got shot, you know, by one of his fans, like, okay, we'll try to avoid that.
1:47:37Elon MuskSo anyway, I appreciate the kind sentiments. I will endeavor to stay alive and.
1:47:53Elon MuskAll Right. Hi Elon, I was reading an article the other day. Is Tesla still have somewhere in the product timeline a home H Vac system in the works, A Home Interact system?
1:48:08Elon MuskWe do not have a Home Interact system that I'm aware of. No, no, we do not want H Vac system.
1:48:12ShareholderOh, H Vac.
1:48:13Elon MuskOh, H Vac. Yeah, yeah, sure, yeah. In the list of things that would be like, more useful than like, it would be nice to do would be a great H Vac system that is very power efficient, you know, has like a built in HEPA filter and like take a lot of things that we've learned in the car and apply that to home H Vac.
1:48:36Elon MuskBecause I'm. I actually maybe there is a great home H Vac system out there, but I don't, I haven't found it. Which is pretty wild. And just building in the filtration system and you know, being able to sort of maybe also control humidity somewhat and like I said, be super efficient and quiet, which are all things that we do in the car.
1:49:00Elon MuskThat would be a pretty sweet thing to do. Maybe we can combine that with the powerwall or something. On the list of things to do that is not super high, but it would be cool to do that one day.
1:49:17ShareholderHi, Elon, this is Sandeep. I just want to thank you for making the Cybertruck.
1:49:22Elon MuskYou're welcome.
1:49:23ShareholderYeah, kids love it. Really? My four and six year old, they love it.
1:49:27Elon MuskExactly. That's what I say, kids. It's like amazing.
1:49:29ShareholderIt's like I went to Disney last week. Nobody looks at Disney. Everybody looks at Sabbath.
1:49:36Elon MuskYeah.
1:49:37ShareholderThere's a funny story, if you may allow. So we were preparing my daughter, we went to Destin and then from there we were driving to Disney and then we were preparing my daughter to.
1:49:47ShareholderShe's four years. To just get used to the lines and you know, you have to have a lot of patience to get in the line. And she's like, dada.
1:49:57ShareholderWhy don't we just say we'll show you our cyber truck and then we'll cut the lines. I mean, she got used to it because we were driving superchargers and then everybody was coming over taking pictures.
1:50:08Elon MuskSure.
1:50:08ShareholderIt's a funny story.
1:50:09Elon MuskYeah, yeah.
1:50:10ShareholderAnd then I have a request. Would you allow 6 year old to tour the factory? Maybe someday in the future. Right now it's capped at 12 years. Okay. Even though we have referral rewards, it's capped at 12 years.
1:50:22ShareholderWould you allow the kids to tour the factory? Maybe they can see the robots.
1:50:27Elon MuskSure, sure.
1:50:28ShareholderWe make an event or something like that.
1:50:30John CheveddenYeah.
1:50:30Elon MuskMaybe we could have like a worse like worried about kid safety and stuff, you know, in case kid like goes running off into like the robot cell or something.
1:50:38Elon MuskBut, but yeah, we could I think lower this, maybe have like a more limited tour that's know enables younger kids to go. Sure, we'll do that.
1:50:48John CheveddenAll right.
1:50:50Elon MuskSee. Okay. Donald Trump has been a big critic of electric vehicles. But last week he surprised us by saying he's a big fan of Tesla and a big fan of you.
1:51:11Elon MuskWhat did you tell him? Well, you know, I can be persuasive.
1:51:19ShareholderSo.
1:51:22Elon MuskYeah, actually I don't exactly know why he. This is a good question. I mean, you know, I have had some conversations with him and he does, he does Call me out of the blue for no reason.
1:51:36Elon MuskI don't know why, but he does. And it's, and it's like he's very nice when he calls and you know, and I was like, you know, you know, electric cars I think are pretty good for the future.
1:51:48Elon MuskAmerica's the leader in electric cars, you know, you know, buy America and stuff. And, and I think he actually, a lot of his friends now have Teslas and they, they will love it.
1:51:59Elon MuskAnd he's a huge fan of the cybertruck, so I think those may be contributing factors.
1:52:11Elon MuskHey, Elon, on your right.
1:52:13John CheveddenYeah.
1:52:13Elon MuskMy name is Keanu, longtime fan of your brand and company and everything. I'm wondering, when you take the driver out of the seat for the driverless car, how do you plan to handle interventions which I'm sure will happen at point some, some rate, even if they're rare?
1:52:31Elon MuskYeah, so there's, I mean, clearly we want to make sure that if there's no driver in the car, the probability of a severe intervention is extremely low. You know, we want to make sure that the car is extremely cautious around vulnerable road users like cyclists or pedestrians.
1:52:50Elon MuskSo really we'd want the probability of, of a, of, of hurting a pedestrian or cyclist to be incredibly low. Like suit way lower than someone driving a car. Now then there are, there are interventions that happen where the car is simply like, I don't know, gets stuck down a one way street whereas with a like crazy construction situation that, but in which case it'll, it'll basically phone home and say, help, I need, I'm stuck.
1:53:21Elon MuskAnd then I think we could probably solve a lot of these things just by, you know, remoting into the car and kind of like steering it like a giant RC car.
1:53:33Elon MuskThat's what I'm guessing. That's what I think we'll do.
1:53:41Elon MuskHey, Elon Anwarbek from Kazakhstan. Thanks for installing superchargers. I just want to acknowledge Tesla, Boomer Mama and Sawyer Merritt for all the efforts. They did organize the.
1:54:05Elon MuskThere's a after party to celebrate at Luster Pearl east if you guys want to come and celebrate all the efforts for the community. Congratulations, Elon. Thank you. Yep.
1:54:20Elon MuskThanks for hosting today, Elon. It's about four years since you did battery day and grew up there was very ambitious targets of getting to a terawatt hour of batteries.
1:54:30Elon MuskAnd earlier in your presentation, you alluded to the great difficulty of scaling up this new technology. I think as shareholders, we're most interested. Could you tell us a little bit more?
1:54:40Elon MuskBecause in terms of affordability, which you also mentioned as this hu huge burden. These 4680s get manufacturing credits and also on the consumer side get large credits as well.
1:54:50Elon MuskIf you could scale that so that we could produce full level of cybertrucks
1:54:54Shareholderand also start to put them back
1:54:55Elon Muskin the Y and the three, potentially it would greatly improve affordability and be great in terms of scale.
1:55:04John CheveddenSure.
1:55:09Elon MuskSo achieving affordability is actually at this point more about the rest of the car than it is actually about the battery pack. So the price per kilowatt hour of cells from suppliers has dropped dramatically.
1:55:25Elon MuskSo there was a massive spike for a few years in the cost of lithium ion cells from suppliers because every car manufacturer put in gigantic orders for battery packs.
1:55:36Elon MuskLike giant, giant orders. So the price of like, of lithium and like all the raw materials and the battery cells went, went crazy. It doubled like the price of cells doubled.
1:55:50Elon MuskPrice of lithium I think went up at almost like five, five fold or like 500%. Like went up crazy numbers. So since then the demand like suppliers, battery cell suppliers have increased their supply and the orders from other car manufacturers have declined.
1:56:12Elon MuskSo I mean it is worth noting that it's, it's like, it's tough sledding out there for EVs. You know, GM announced I think a 50% reduction in recently in their EVs.
1:56:23Elon MuskFord announced reductions. I think almost every manufacturer has announced reductions in their electric vehicle plans. Now Tesla we're going to increase, but it, but it is not an easy market.
1:56:37Elon MuskAnd but to get the cost of car down, it's really the battery pack is a piece of the puzzle, but it's really everything else too. So I really would describe like we're making a car more affordable.
1:56:52Elon MuskIt's like Game of Thrones, but pennies. Game of pennies. So there's quote to first approximation, 10,000 unique items in a car. And if each one costs five bucks, then you've got a $50,000 car.
1:57:07Elon MuskSo to actually get the cost of car down, you've got to chisel away pennies to get the 10,000 items to be $3 or something instead of $5. That's kind of what it amounts to.
1:57:24Elon MuskNow with respect to our own cell production, we do see a path to cost parity by the end of this year. A very difficult path to cost parity. Currently our 4600 cost more than our suppliers.
1:57:40Elon MuskNow they cost more than the suppliers today, but they cost less than the suppliers a year ago. So you know, there's a bit of a beast famine Thing with battery cell supply, it's kind of like for DRAM chips, you know, like the DRAM industry goes from like, you know, oversupply to under supply.
1:57:58Elon MuskThe price of DRAM changes like crazy. It's kind of like that for sales. So. But we expect to achieve cost parity with even the much lower supplier sell price today by the end of the year.
1:58:23Elon MuskHi, Mr. Musk. I've been a long term investor since 2012. Great. And I voted for your compensation package in 2018. Again, thank you this year. And shout out to Tesla Boomer Mama.
1:58:35Elon MuskAlexandra,
1:58:38ShareholderI had a privilege to talk
1:58:39Elon Muskto you in 2013 briefly. And you spoke about the truck which became the Cybertruck. You're a man of reward. I have friends all over the world in Asia, Canada and Europe.
1:58:49Elon MuskAnd I know the cybertruck's been on tour. How's been the reception for the cybertruck and when will it be or is it possible to sell and when will it be sold internationally?
1:59:00Elon MuskYeah, so I think probably, you know, we might be able to certify it for other markets sometime next year. But like for sure this year it's just North America.
1:59:15Elon MuskWe did design the car to North American requirements because if you start going with the superset of all international requirements, it forces a lot of constraints on the, on, on cybertruck that would make the product frankly worse.
1:59:31Elon MuskSo I think we'll need to make a special version that is for example, China compliant or Europe compliant. But it really doesn't make sense to add that complexity until we've achieved higher volume production on Cybertruck.
1:59:51Elon MuskThere's still a lot of work to do on cost, cost down for the Cybertruck. You know, I generally would say like the, the level of difficulty of going from, say, prototype, you're from prototype to production, it's 100 times harder to go from, from the, you know, from prototype to production is 100 times harder.
2:00:10Elon MuskAnd then once you reach production, to improve the price by 20%. Like the cost of goods by 20% is harder than reaching production in the first place. Like it's mega pain.
2:00:24Elon MuskIt's like, you know, and to be frank, it's not the funnest job in the world. You know, like chiseling pennies is not. It's like washing the dishes, frankly, you know, like wash a lot of dishes here.
2:00:36Elon MuskLike it's super fun to make prototypes. That's really fun. And it's, it's kind of cool to get, it's pretty cool to get the production going. Then the cost grind is a grind that is like, you know, it's hard work, you know, there's some reward to it.
2:00:52Elon MuskLike there's sort of a reward to washing the dishes. I guess you have clean dishes. But it's, that is, that is tough. So that's real hard work. I just have to say that there's been a really big reception.
2:01:12Elon MuskLike I have friends that's, you know, message me and said they love the cybertruck design and it's, it's definitely a head turner, so. Oh yeah, I think from a demand standpoint, we would have plenty of demand in other parts of the world for cybertruck, no question.
2:01:25Elon MuskLike wherever it goes anywhere in the world, it's like it gets a massive crowd. So, so it's not a demand thing. It's. It's really, we've got to reach volume production, go through the cost grind.
2:01:37Elon MuskI can't. It would be difficult for me to overstate the difficulty in the cost grind. It's really intense. And then we've got to recertify the car which includes making some design changes for to meet to be compliant in other markets.
2:01:55Elon MuskAll right. Good afternoon, Elon. I like your shoes. I don't know if everybody else can see them. Yeah, out there. Cybertruck.
2:02:05ShareholderYeah.
2:02:06Elon MuskMy question was in regards to the foundation series, do you guys have a certain number that you are planning on making or timeline of when the non foundation series are going to come out?
2:02:18Elon MuskYeah, we'll start making the, we'll end the foundation series actually pretty soon and the non foundation series sometime next quarter.
2:02:32Elon MuskHi Elon, thank you for delivering shareholder value and congrats on your pay package. And I'm Michael. I ask a lot of questions on the quarterly investor calls and I wanted to ask you, can you give me a little bit more color on the neural net scaling laws that you're seeing as you're training fsd?
2:02:50Elon MuskLike how much data, how much more inference compute. How much more training compute do you need for each successive? 9 in reliability of the full self driving driving software.
2:03:01Elon MuskAnd how much data are you currently collecting? Thank you. Yeah, that's a great question. I mean that's something that we go through really every week at Tesla. I spend a lot of time with the Tesla AI team and I think probably like, you know, like a huge portion of, I mean it's really like a big part of my job is like, okay, we need to get the car to drive itself, you know, and yeah, you need to solve things on a chip level for inference, for training, for software.
2:03:44Elon MuskThere's also massive data storage challenges because you have petabytes of video coming in. And even for saying for a big Nvidia cluster, it's actually really hard to make a big Nvidia cluster actually work in training.
2:04:01Elon MuskIt doesn't just open the box and plug it in. It's not like that at all. It's like massive effort required to get a big training cluster to operate with, to operate at all and then operate with high uptime.
2:04:18Elon MuskSo I mean with respect to like the various versions that we're seeing, like you go from version 12, 3, just ignore the 12 and think of it like 3, 4, 5, 6.
2:04:32Elon MuskThat's actually the way to think about it, ignore the 12 part and just call it like version 3, version 4, version 5, that's version 6. That's how to think about it.
2:04:41Elon MuskBetween each one there's anywhere from, I don't know, a minimum of a doubling of improvement to in some cases, I think a five to tenfold improvement.
2:04:58Elon MuskYou know, especially as we eliminate sort of say, I think we're close to eliminating almost all static object collisions. So you know, like curves and medians and we're pretty close to just having it to have almost zero static object collisions.
2:05:23Elon MuskSo once you get to zero static now you have a gigantic improvement in miles between intervention. Then you get into classes of dynamic objects that are different classes and different things can get obviously very complicated.
2:05:41Elon MuskIf you've got a complex intersection with traffic lights all over the place and like somebody bumped the one traffic light and now it's pointing in the wrong direction or the traffic light's broken and there's someone who is not obeying the traffic laws because they're just running a red or they got confused about the traffic light.
2:06:00Elon MuskSo you get these very complex situations that are much harder to solve.
2:06:11Elon MuskSo and then like as I was saying earlier, it actually gets, as the system gets better, it gets harder to figure out which AI model is better. Like, like, because now, you know, like, okay, it's thousands of miles between intervention.
2:06:36Elon MuskHow do we as quickly as possible figure out which AI model is better? And when, when you make these different AI models, they're, they're obviously not like super deterministic.
2:06:47Elon MuskSo because something a new model that does that eliminates one problem, but creates another problem. So.
2:07:01Elon MuskWe're trying to solve this by a combination of simulation, uploading models, having them run in shadow mode. So it's actually kind of helpful that not everyone has full self driving because we can see we can run it in shadow mode and See, what would this new model have done compared to what the user did?
2:07:20Elon MuskSo since we've got, you know, millions of cars that we can do this with, that gives us a delta between what the AI model predicted would do and the user would do.
2:07:31Elon MuskAnd if you kind of sum up the errors between them, you can see, oh, there was a bigger error stack from this model versus that model when you uploaded them into.
2:07:41Elon MuskWe each uploaded them into 100,000 cars. But that's the biggest limiter right now. It's not training, it's not data. It's actually testing the AI models and then figuring out clever ways to figure out if a new model is better or not.
2:08:01Elon MuskLike we know like there are sort of particular intersections that are difficult. And so we, if we just like all the models will be great at like driving on a, on a, on a well painted road with no intersection, they'll all be great at that.
2:08:17Elon MuskBut, but will they be great at the complicate. So, so we've identified several thousand intersections in the United States where we'll, we'll actually take the new model and try the car in those, those very difficult intersections.
2:08:32Elon MuskLike you know, the sort of the famous, like Chuck's left turn.
2:08:42ShareholderYeah,
2:08:45Elon Muskso if you imagine Chuck's left turn. Hey Chuck. I wonder what the neighbors think. But there's many such complicated traffic situations in the country. So we've identified several thousand which we then send cars to those locations to compare the models.
2:09:11Elon MuskAnd then as I mentioned, we have yet to uncork any of the ability of hardware 4, which we'll do later this year. So I think the exponential rate of improvement of miles between intervention will continue and will accelerate.
2:09:34ShareholderElon, I was wondering if, as you've
2:09:40Elon Muskcalled a Tesla, basically a robot with wheels. And so I'm wondering kind of as that, as that logic transfers over to Optimus, what kind of will Tesla use
2:09:51Brandon Ehrhart (General Counsel)any large language models on top of
2:09:54Elon Muskthe current Tesla robotics capabilities? And also if so, will Optimus have any kind of personality and would that be something that the end user might be able to have control over?
2:10:09Elon MuskYes to all of those questions. Yes to all. So like we're headed for a wild future. I mean wild, wild, wild. You know, cars will drive themselves, people will have super helpful humanoid helper bots.
2:10:34Elon MuskAnd yeah, you'll be able to customize the personality, customize the voice and, and really kind of the robot will kind of get to know you as well and know your preferences.
2:10:44Elon MuskYou won't even have to say things because we'll just kind of understand you. I think it will get to this point where it's like it'll be odd not to have a robot buddy, like you know, sort of not, not to have your C3PO and you know, R2D2.
2:11:01Elon MuskSo yeah. Hi Ellen, Max here, huge fan, thank you for hosting us. I wanted to ask you, how do you, how much integration work do you think will be needed to deploy Optimus into different types of factories, industries like unique technicians or just have them go watch?
2:11:23Elon MuskAnd how do you foresee that? Well, I think if you fast forward a few years it really will be quite a generalized robot. Like say two years from now, like next year it'll like this year it's still quite specific, you know, task specific training.
2:11:44Elon MuskSo to do a particular task we have to kind of do fair bit of training to solve that task. But over time I think you sort of accumulate these kind of training primitives where like calling like walking for example is a training primitive.
2:12:05Elon MuskPicking something, identifying an object and grabbing it would be a primitive. And these primitives are then generalized to anything. So you could say pick up a cup, pick up a shirt, fold the shirt.
2:12:23Elon MuskThese things will generalize I think quite quickly. So I expect probably not next year. But like in 2026 it's really the kind of thing where you could tell it to do kind of a wide range of tasks.
2:12:42Elon MuskA wide range of tasks, including tasks where it has not specifically done that exact thing before probably I'm guessing 2026. True. And do you foresee a cheaper version where tasks don't require like walking for example, or so you the hardware would become a lot simpler or cheaper?
2:13:06Elon MuskWell, we're going to focus on making just a fantastic humanoid robot at scale and really achieving scale economies and building that humanoid robot at very high volume. If you're really good at manufacturing, you can get the cost of almost anything down to its constituent elements, essentially the weight.
2:13:34Elon MuskAnd if you just look at the weight of raw materials times the value of those raw materials, excluding circuit boards, you really can say like if it weighs less, it's going to cost less.
2:13:51Elon MuskBut what I'm saying is that it's better for us to achieve very high volume with Optimus than to have a wide range of robots that have lower volume.
2:14:10Elon MuskOne of the best things about the recertifying of your compensation package was listening
2:14:17Shareholderto all the positive feedback of current
2:14:19Elon Muskand former employees to what you have contributed to Tesla.
2:14:23ShareholderIn the unfortunate event that you're hit by a car not full self driving,
2:14:29Elon Muskcan you take a few minutes or
2:14:31Shareholdera few seconds and brag them on
2:14:32Elon Muskyour board and the rest of your leadership to assure us that even without
2:14:37Shareholderyou, Tesla has an incredible future at $30 trillion.
2:14:47Elon MuskWell, I think Tesla has a good future without me. I think I'm a helpful accelerant to that future.
2:15:02Elon MuskAnd for technology, it matters if you're ahead or not ahead a lot. So the rate of like, what matters is not innovation, but the rate of innovation. You know, can you do in one year what other companies do in two years or three years?
2:15:22Elon MuskSo like, probably my biggest, most helpful thing is an innovation accelerant. And you know, because given enough time, the various startups that are doing humanoid robots will eventually succeed.
2:15:35Elon MuskOne of them will. And so what really matters is can we be much faster than everyone else? Can our product be done a few years ahead before theirs and be better?
2:15:51Elon MuskBecause if that's not the case, then, you know, they will achieve the valuation and not Tesla. They will make the valuable product, not Tesla. So, you know, that's where I, I think I'm probably most useful is that is accelerating the pace of technology and innovation and getting to scale.
2:16:17John CheveddenYeah,
2:16:20Elon Muskthat's, that's, that's it mostly. But I am very much heartened by and appreciate the support of current format sales, employees, Tesla board and, and all you guys for helping out.
2:16:31Elon MuskYou know, my heart goes out of you.
2:16:37Robyn Denholm (Board Chair)Hi, Elaine.
2:16:39Elon MuskJessica, my name is and I have
2:16:43Tejal Patellived full time RV for about three years in South Texas.
2:16:46Elon MuskOkay.
2:16:47Tejal PatelAnd I just wanted to thank you for your starship, for the starship program and everything you're doing there.
2:16:53Elon MuskIn addition to Tesla, do you work at SpaceX or something?
2:16:56Robyn Denholm (Board Chair)No.
2:16:56Elon MuskOkay.
2:16:57ShareholderOkay.
2:16:57Elon MuskBut you live in an RV in South Texas?
2:16:59Robyn Denholm (Board Chair)Yeah.
2:16:59ShareholderOkay.
2:17:01Robyn Denholm (Board Chair)Hi.
2:17:03Tejal PatelAnd in my RV park, they don't allow car camping for Teslas or electric vehicles at all if you're not pulling a trailer. And I feel that there's a huge opportunity there.
2:17:18Tejal PatelBut also for just for example, people who are coming into town for starship launches in Tesla's, if they could park somewhere overnight and trickle charge.
2:17:31Elon MuskOkay.
2:17:32Tejal PatelAnd maybe have access to, you know, bathroom facility or just something simple like that. Just something I wanted to just put forward because I, I know that a lot of people come into the park and are disappointed.
2:17:46Tejal PatelThey can't say so.
2:17:47Elon MuskOkay, got it. Just, just a thought. I'll inquire to see if there's like maybe someplace that would allow people to stay in their cars, which in a Tesla you really can often stay quite comfortably in a car and.
2:18:02Elon MuskYes. And charge.
2:18:03John CheveddenAll right.
2:18:04Elon MuskThanks. All right. I think so this will have to be the last question, I think. Or maybe last two. Yeah. All right, so last two questions, you and two guys and.
2:18:16ShareholderHey, Elon.
2:18:16Elon MuskMy name is Stephen. I'm truly thankful for all you've done for humanity and watching your companies and what you've done has been the most exciting, hope inspiring movie that there's ever been.
2:18:24Elon MuskSo thank you so much and thank you. Yeah, thank you. My question today is about lithium refining. In the past you stated that would be a limiting factor in the future.
2:18:34Elon MuskAnd I know Tesla has built the refinery in Texas. I was just kind of curious your current opinion about the refining. Do you think there's enough capacity coming online or will Tesla need to expand past 10 Texas in that regard?
2:18:48Elon MuskThere's, there's enough lithium refining if you count China, if you, if there should, if there's a geopolitical challenge on that front, then there may be a shortage of lithium, but China is very good at, at refining, so.
2:19:07Elon MuskBut I think just Tesla being, figuring out lithium refining, understanding what it takes and then, you know, once we understand how it works, then we can scale it up from there and that like it's, I think it's pretty important to, you know, be careful with geopolitical risk and just make sure that if in a worst case situation that Tesla is okay.
2:19:33Elon MuskAll right, thank you. This is the last question.
2:19:38ShareholderHi Lon. Thank you. Congratulations for yet another big win. I'm Nikhil, I'm based out of Silicon Valley and as you mentioned on FSD awareness and giving people rights because most people, unless they really experience it, they don't quite know how safe it is becoming and how convenient it is becoming.
2:19:58ShareholderSo I built Tesme Company. It's a platform for Tesla owners to offer learning experiences FSD and we would love to explore how we can help scale with your support and guidance.
2:20:10ShareholderAnd we'd love to have a follow up conversation to discuss more details with you how we can work together. Thank you.
2:20:19Elon MuskOkay, sure. Okay, sure, sure, sure, sure. I really want to ask questions.
2:20:27ShareholderFollow up please.
2:20:30Elon MuskI'm not, I'm not sure how to answer that question exactly. But I mean we are, we are focused on improving FSD for sure and I think the adoption will be widespread when it is really working insanely well and it's driving like a five star Uber driver.
2:20:45Elon MuskI think adoption will be, will be very, very quick.
2:20:49ShareholderAll right, I did have a really good suggestion.
2:20:52Elon MuskOkay, what's the suggestion? Sure,
2:20:56ShareholderI shared this suggestion with one of your FSC team, but I don't know whether they reached you or not. Basically, as FSC keep on improving, we are not quite sure at what rate you will be improving the march of lines.
2:21:11ShareholderSo log remains as to when you can exactly operate the robot taxi. So it occurred to me that in between supervised FSD and robot taxi, there is something intermediate stage that's commercializable, which is what I would call a robot rental car.
2:21:30John CheveddenOkay.
2:21:31ShareholderThe idea is that you would, people would go to your platform to order a rental car and you would deliver that overnight to the front of their driveway. And then so the only time that the car will be driving without a person is at night with nobody.
2:21:48ShareholderAnd you can take as long as you want and you drop in the front of the car and after that it's supervised. So that will get you to a commercialization much sooner, much more guaranteed.
2:22:00ShareholderSo that's my suggestion.
2:22:01Elon MuskAll right, well, I appreciate the thought. I think like I said, the progress in FSD will be really amazing. You'll see with each successive version, like I said, the best way to think of FSD, ignore the 12, just think of the, the point number going from version 3 to 4 to 5 to 6 and you'll see just radical improvements with each successive version.
2:22:24Elon MuskYou know, and I mean if current trend continues, it's going to be like you will really find that you don't intervene in the course of a year type of thing.
2:22:35Elon MuskSo even in complex situations with that, thank you very much for your support.
2:22:43John CheveddenSo.
2:22:48Elon MuskSo thanks guys.
2:22:54Elon MuskAll right,
2:23:04Elon MuskAll right, that does it for the Tesla annual shareholder meeting.
2:23:10ShareholderWe're going to figure, stick around, they're
2:23:11Elon Muskall load of fun. We'll do some sports betting. We've got hockey coming up today, you've got NBA finals tomorrow.
2:23:20ShareholderIf you're down for a little bit of sports betting, stick around. We'll do it for about 5, 10
2:23:23Elon Muskminutes while I place the real life bet.
2:23:27ShareholderWait for this to finish up here and we'll continue that.
2:23:50ShareholderAbsolutely, you're welcome for the chat box.
2:23:52Shareholder ProponentAll right, cool.
2:23:54ShareholderI'm gonna go ahead and like I said, please some guts. We can spam one in the chat in the is the type of content you're interested in.
2:24:17ShareholderAll right, cool. So you guys should be able to see my screen now. Matter of fact, let me do this, let me do that, let me make sure this is all full screen.
2:24:38ShareholderAll right, so I'm just gonna place a quick bet and if you guys are interested, you can stick around, have some fun with it. That was about two and a half hours Long, by the way, but are you looking for the chat box?
2:24:50ShareholderLet's go ahead and place some quick bets on Underdog Fantasy. Obviously, we are a financial and news media company, but we like to go ahead and, you know, risk a little bit of money as well.
2:25:01ShareholderAnd obviously, this is not financial advice, but by the way, I think last time I did this on stream, I placed this bet in front of all of y', all, or, you know, folks that were here, and we won.
2:25:12ShareholderThis is a bet that I had placed. It was a slip. It was al Horford, under nine and a half. He got eight points. Last night, it was Stanton, higher than seven fantasy points.
2:25:23ShareholderHe got 19 and under three birdies for this gentleman's name, whose name I cannot pronounce, and he got zero. So that was kind of awesome to. To see. Let me.
2:25:40ShareholderPaste that. Do that there. All right. All right, let's go ahead and see if we can make another slip here.
2:25:54ShareholderA lot of times. Let's go. We got him. Joe Ryan. They're expecting him to have a fantastic game. I don't know if I am a big believer in all of that, but we're gonna go under for Joe Ryan.
2:26:12ShareholderLet's go under on the seven and a half rebounds for her, and we'll go under here as well. I'm gonna go ahead and risk 50 bucks. Place it. Confirm.
2:26:28ShareholderWe'll see if it gets confirmed. There it is. Awesome. Sweet. Put this in my betting tracker, because just like stocks, if I'm placing a beta, I want to track it to see how well I'm doing.
2:26:40ShareholderI started this account, by the way, for those of you that are not familiar with me, I trade stocks, options on Benzinga, so you can, you know, follow us.
2:26:48ShareholderWe've got some great trading competition stuff going on as well. That should be a lot of fun. But I track my bets. I make sure that, you know, I'm on pace to win, and so far, it's going well.
2:27:01ShareholderI started this account with, I think, a thousand what I had, Right. So let me kind of X this out. I had a thousand bucks. As you can see.
2:27:07ShareholderI just placed a $50 bet. I can go to live. Pick them. I can go to results. Excuse me. Pick them. I don't win all the time, but I get kind of close.
2:27:16ShareholderI won this one a few days ago. Lost, lost, lost, lost one. We'll see how it goes. As long as I win, you know, once every six times, I think I'm doing all right.
2:27:27ShareholderBut basically, the way that I like to kind of predict it is kind of look at what the sports books are thinking in terms of how many points someone's going to score.
2:27:34ShareholderSo I think it was where'd it go? Where'd it go? Where'd it go? Where'd it go? So I'll give you an example, right?
2:27:48ShareholderSeverino, he I went, we would took what his under 30 and a half. Everyone else, the market kind of had it around 28 and a half. So we've got a little bit of a, an advantage of 2, 3 points of the market saying, hey, look, 28.
2:28:01ShareholderWe're rocking with 30 and a half. That's we want to go ahead and place the bet again, you know, gamble responsibly, make sure you are smart about what you do.
2:28:09ShareholderBut do me a favor, do me a favor. Here's what I want. I want to do this show. I don't think you guys can see my face. Let me, let me show you my face.
2:28:15Shareholder ProponentHold on.
2:28:15ShareholderThere you go. Hello.
2:28:16John CheveddenHi.
2:28:17ShareholderAll right, here's what I want to do. We, by the way, hope you guys enjoyed that Tesla stream. We do what we can to make sure you guys get educated when it comes to the financial market so you can make an informed decision with your hard earned money.
2:28:27ShareholderWe also want to provide some sports betting stuff, right? You've got football season coming up. Fantasy is going to be huge and you've got college basketball. Then of course you transition over to October and you've got MLB baseball playoffs happening there as well.
2:28:38ShareholderAnd we want to, we want to do more sports betting content. But here's what I need you to do to help me out so that I can go ahead and tell so that I can go ahead and tell the bosses.
2:28:49ShareholderThis is the type of content we should pursue. You can go ahead and just spam underdog in the chat if you would like this sports betting type of content.
2:28:57ShareholderYou can email me as well. If there's any other type of content you want. I'll go ahead and drop my, drop my email address there as well. But let us know if this is the type of sports betting content you want.
2:29:08ShareholderI went ahead and placed that bet. Maybe I'll place another one. Might not place another one. Let's see. Got the Atlanta dream playing tonight. Take the under there. Some esports action as well.
2:29:25ShareholderI don't know if I want to do that though. But yeah, why not? Let's see over headshots. We'll take the higher there and we'll go ahead and take this.
2:29:38ShareholderAll right, so look, those are. Do you Want to go under on this one. They're on the same thing though so I don't know how that would work.
2:29:56ShareholderI don't know if I like this one. I don't know if I like this one.
2:30:06ShareholderLet's see.
2:30:11John CheveddenAll right.
2:30:11ShareholderI think I'm just gonna. Because you know similar to stock market I want to force bets or trades just for the sake of it. So we'll go ahead and rock with this slip here.
2:30:20ShareholderThat'll be it. Fifty dollar entry that we went ahead and placed live. If you guys have any questions, if you have any type of content, let us know. We're coming out.
2:30:30ShareholderWe can't announce it fully just yet but a little teaser is we've got a trading competition that we're going to announce hopefully here in a couple of weeks where you get a chance to win up to $30,000.
2:30:40ShareholderIt'll be like a three month, it'll be three one month competitions with $30,000 as a total price pool. So that'll be fun, exciting stuff. And that's cash by the way.
2:30:49ShareholderAnd you know we always some benzinga pro and all that aspect of it as well. We've got a bunch of trading shows. We start pre market prep at 8 o' clock then we've got live trading from 9 o' clock all the way to 12.
2:30:59ShareholderHonestly so cool. If you guys have any ideas, type of content you want to see, email us. But that's the slip. If you guys tail, good luck. If you don't, no worries.
2:31:09ShareholderI'm probably going to lose anyway but best of luck. Hope you guys enjoyed the stream. We'll see you next time.
2:31:13Elizabeth LevyBye.