Tesla's Annual Shareholder Meeting: Achievements and Future Vision

Tesla's 2024 shareholder meeting covers stockholder votes, CEO presentation, and company achievements.

### Tesla 2024 Shareholder Meeting Highlights and Elon Musk's Future Vision
* 📈 Tesla's achievements in 2023 include the Model Y becoming the **best-selling vehicle in the world**, beginning Cybertruck deliveries, and **record energy storage deployments**.
* 🤖 Elon Musk highlights the rapid progress of Full Self-Driving (FSD) version 12, predicting that it will lead to **unsupervised FSD "very quickly"** and be **far safer than human driving**.
* 🚗 Musk emphasizes that Tesla's long-term value will be driven by autonomy, comparing it to an "**exponential curve**" that will make Tesla an "**autonomous taxi**" company.
* 🔋 The Gigafactory in Texas is described as the **most advanced car factory on Earth**, and Musk stresses the importance of the factory as "**the machine that builds the machine**".
* 💡 Musk's vision for the future includes Tesla's fleet acting as a combination of **Uber (Tesla-owned cars)** and **Airbnb (customer-owned cars)**, allowing owners to **add or subtract their cars to the autonomous fleet to generate revenue**.
* 🌍 Musk's ultimate goal for Tesla is to **accelerate the world's transition to a fully sustainable global economy**, with electric vehicles, stationary storage, and solar energy playing **key roles**.
* 💰 Musk's optimism about Tesla's future is based on his belief in the **exponential growth of autonomy** and the potential of the **Optimus humanoid robot**, with Kathy Wood's ARK Invest predicting a **$5 trillion valuation for Tesla** based on vehicle autonomy alone.
* 🗳 At the 2024 shareholder meeting, Tesla's stockholders approved the election of directors, executive compensation, the redomestication of Tesla from Delaware to Texas, and the ratification of **Elon Musk's 100% performance-based stock option award**. Stockholders also approved the recommendations of the Tesla board on most of the shareholder proposals, except for proposals to **reduce director terms to one year** and **adopt simple majority voting**.

### Tesla's Optimus: The $25T Humanoid Robot and the Future of AI
* 🤖 Elon Musk predicts the world will need over **10 billion humanoid robots**, with Tesla likely having a **10% share**, producing around **1 billion units a year** at a cost of **$10,000 each**.
* 🚗 Tesla's Optimus robots are already working in the Fremont factory, with the next generation having **22 degrees of freedom** and the ability to **play the piano**.
* 🔋 Tesla's AI chip, Hardware 4, is currently in emulation mode on all cars with Hardware 3, and Hardware 5 (ai5) is expected to be **10 times more capable than Hardware 4**.
* 🌍 Musk envisions a future where Tesla's fleet of over 100 million vehicles can provide a **massive amount of inference compute power**, potentially leading to an "**Amazon Web Services (AWS) type opportunity**".
* 🧠 Musk believes Tesla is the **world leader in real-world AI**, with no one even close in terms of **taking in video and making decisions based on it**.
* 🚗 Tesla's full self-driving (FSD) software is making **significant progress**, with Musk planning to offer **free trials to all customers** whenever there is a **significant improvement**.
* 🔋 Tesla's energy storage deployments are on track for **2-300% year-over-year growth**, with the **Powerwall 3 and Mega Pack 3** expected to be **game changers**.
* 🧳 Musk hints at some "**pretty special**" new products in the works, and Tesla's supercharger network continues to grow significantly, with plans to **open up new markets** and provide **adapters for other electric vehicle companies**.

### Tesla's Future: Full Self-Driving, Cybertruck, Optimus, and More
* 🚗 Elon Musk highlights Tesla's Full Self-Driving (FSD) technology, emphasizing that **safety per mile is better than human driving** and the goal is to make the **number of accidents smaller**.
* 📈 Ark Invest predicts Tesla's market cap to reach **$5-7 trillion by 2029**, over **10 times the current value**.
* 🔋 Musk stresses the importance of making more affordable vehicles to meet demand, stating that **affordability is more about the entire car than just the battery pack**.
* 🤖 Tesla plans to deploy Optimus, a humanoid robot, which Musk envisions as a "**robot buddy**" with **customizable personality and voice**.
* 🌍 Musk discusses the challenges of **scaling FSD neural networks** and the difficulty of **testing AI models to determine if a new version is better**.
* 🔮 He predicts that by 2026, **Optimus will become a generalized robot capable of performing a wide range of tasks**.
* 🪙 Musk compares the process of making cars more affordable to "Game of Thrones," stating that it involves **chiseling away pennies from the cost of 10,000 unique items**.
* 👤 He acknowledges the role of innovation as an **accelerant to Tesla's future**, but also expresses **confidence in the company's prospects even without him**.

2024 Annual Stockholder Meeting

Electric vehicles, giant batteries & solar, AI & robotics. Tesla’s mission is to accelerate the world’s transition to sustainable energy.

Tesla

Tesla's 2024 Annual Shareholder Meeting: Key Points

- The meeting is divided into two parts: voting on 12 items and a presentation by Elon Musk, including forward-looking statements.

- The chair of Tesla's board highlights the company's achievements in 2023, including vehicle sales, energy storage deployment, and greenhouse gas emission avoidance.

- The chair also emphasizes Tesla's commitment to sustainability, safety, and the importance of shareholder engagement, while thanking the employees and emphasizing the board's dedication.

The meeting is declared to have a quorum, and the agenda includes five Tesla proposals and seven stockholder proposals.

The stockholder proposals focus on reducing director terms, implementing a simple majority vote, and reporting on anti-harassment and discrimination efforts.

The board has recommended voting against the stockholder proposals, but the stockholders are advocating for more accountability, flexibility in voting, and annual reporting on important social issues.

Shareholder Proposals at Tesla's Annual Meeting

Nia Investment Group is pushing for an independent report on workplace harassment and discrimination at Tesla, citing concerns about the company's people management policies.

S so Investment Group is requesting Tesla to adopt a non-interference and collective bargaining policy, expressing worries about the company's adherence to international labor rights standards.

Environmental Health Trust is calling for transparent reporting on the risks of magnetic fields and wireless radiation in Tesla's products, emphasizing the potential health hazards and the shareholders' right to know.

Tesla Shareholder Proposals and Board Responses

Tesla is being urged to take a leadership role in reducing EMF exposure from its vehicles and products, as well as to integrate sustainability metrics into its executive compensation plans.

The company is facing pressure to commit to a moratorium on sourcing minerals from deep-sea mining, due to the potential environmental impact.

Despite the board's recommendations, stockholders have approved the majority of Tesla's proposals, signaling a push for change in the company's policies and practices.

Elon Musk recaps Tesla's achievements and future direction at the shareholder meeting, expressing confidence in the company's sustainable energy solutions and the progress of Full Self-Driving (FSD) technology.

Musk emphasizes the unprecedented value of Tesla's autonomous vehicle fleet and predicts that it will far exceed the revenue made by the company.

He also outlines the plan to monetize the autonomous fleet, comparing it to a combination of Airbnb and Uber, and expresses strong confidence in its success.

The Pathological Optimism of Tesla's Future

Elon Musk expresses his extreme optimism about the future of Tesla and its potential for humanoid robots.

He predicts a trillion dollars in annual profit from the sale of "Optimus" robots and a 20 trillion market cap, leading to a valuation 10 times that of the most valuable company today.

Musk also emphasizes Tesla's commitment to sustainability and the significant impact of autonomy on carbon emissions, highlighting the company's efforts to do the right thing.

Tesla is set to have over 7 million vehicles by the end of the year, with the highest volume auto factory in North America located in Fremont.

The company is successfully shipping a record number of Cybertrucks and has launched the upgraded Model 3, which offers great performance and cost savings.

Tesla's semi trucks are now in low volume production, with plans for high volume production in the future, aiming to have a significant financial impact and reduce carbon emissions.

Additionally, Tesla is expanding its supercharger network and plans to open up new markets worldwide, as well as offering the superchargers to other electric car companies.

Tesla's Innovations in Battery Production and Energy Deployment

Tesla is focusing on innovating battery production with the 4680 and is making significant progress in cell manufacturing, using these cells in their Cybertruck.

The company is also on track to have a two to 300% year-over-year growth in energy storage deployment, ramping up production of the Powerwall 3 and Mega Pack.

Tesla's significant investment in vertical integration for cathode and lithium refining is expected to have a big payoff.

The Powerwall 3 and Mega Pack are described as epic products and game changers, with plans for the Mega Pack 3 to revolutionize the utility industry.

Tesla is also making money from its services and software engineering, playing a major role in AI, chip design, and real-world AI leadership, surpassing other companies in the field.

The company has completed the design on Hardware 5, ai5, and its AI inference chip in cars is considered the best in the world.

Tesla is planning to continue working on Hardware 3 training while also separately training on Hardware 4, which is expected to be five times better than Hardware 3.

The company is also working on Hardware 5, which will be 10 times more capable than Hardware 4 and is set to be released in about 18 months.

Elon Musk also envisions a significant opportunity for Tesla in using the inference compute power of its future vehicle fleet, similar to Amazon Web Services' model.

Elon Musk discusses the significant improvements in Tesla's robot, Optimus, and its potential to revolutionize autonomous driving.

The company plans to have over a thousand Optimus robots in operation next year, leveraging its strong engineering and AI capabilities.

Musk believes that Optimus has the potential to create a $25 trillion market cap situation in the autonomous transport industry, emphasizing the immense amount of work and rapid progress in achieving this goal.

Importance of the First Amendment and Future of Tesla

Elon Musk emphasizes the importance of freedom of speech for the future of civilization, linking it to the creation of a free speech platform like Twitter.

Musk plans to offer free trials of Full Self-Driving (FSD) software with significant improvements and reevaluate the referral program's cost for Tesla cars in the next quarter.

He predicts the market cap of Tesla to reach 5 to 7 trillion by 2029, emphasizing the accuracy of Ark Invest's analysis.

Elon Musk acknowledges that the high cost of Tesla cars limits demand and expresses the need to make more affordable vehicles.

He also discusses the complexity of implementing ongoing FSD transfers.

Musk addresses concerns about his safety and the company's future, citing previous incidents with homicidal individuals.

Additionally, he talks about the possibility of developing a power-efficient and quiet home HVAC system.

Elon Musk's Views on Electric Vehicles and Tesla's Future

Elon Musk surprised many by expressing his support for Tesla, despite previous criticism of electric vehicles.

He emphasized the importance of ensuring the safety of pedestrians and cyclists with driverless cars.

Musk highlighted the challenge of making electric cars more affordable, attributing the cost to various components of the vehicle rather than just the battery pack.

Future International Sales of the Cybertruck

Elon Musk plans to certify the Cybertruck for international markets next year, focusing on North America for the current year.

The company needs to achieve higher volume production and work on cost reduction before addressing the demand in other parts of the world.

The production of the non-Foundation series is expected to start next quarter.

The neural net scaling laws and training of FSD at Tesla are a significant focus for Musk, with a strong emphasis on data collection and continuous improvement in AI models for self-driving.

Future of Tesla's AI Models and Humanoid Robots

Elon Musk plans to test new AI models in thousands of difficult traffic locations in the US to compare their performance.

The upcoming Tesla robot, Optimus, will use large language models, have a customizable personality, and be able to adapt to user preferences.

Musk envisions Optimus as a generalized robot that can perform a wide range of tasks, with a focus on manufacturing it at a high volume to reduce costs.

He believes that while he accelerates innovation at Tesla, the company has a strong future without him, as the key is to outpace others in technological advancement.

Potential Opportunities for Tesla and FSD

Elon Musk discussed the potential for allowing Tesla and electric vehicles to park and charge at RV parks, highlighting a possible opportunity for overnight stays and trickle charging.

Musk also addressed the issue of lithium refining capacity, expressing the importance of understanding and scaling the process, while being mindful of geopolitical risks, especially in relation to China.

A suggestion for an intermediate stage between supervised FSD and robot taxi, referred to as a "robot rental car," was brought to Musk's attention, to which he expressed appreciation and confidence in the progress of FSD.