Summary of 2024 Annual Shareholder Meeting | Tesla

• 00:03:09

  The 2024 Tesla Annual Shareholder Meeting took place in Texas and was opened by Brandon arhart, the general counsel and corporate secretary. The meeting covered 12 items for stockholders to vote on, and CEO Elon Musk provided a presentation. The board chair, Robin danol, highlighted Tesla's achievements in 2023, including the success of the Model Y and Cybertruck, as well as the increase in energy storage deployments. The focus remains on developing revolutionary technologies in autos, energy, and artificial intelligence to accelerate the transition to sustainable energy.

• 00:07:32

  To further the utilization of Tesla's products, the company released FSD supervised, showcasing scalability in autonomy through advancements in artificial intelligence and efficient production. Investments in hardware and software ecosystems are planned to advance the path to autonomy and usher in the era of Robo taxis. Sustainability is a core focus, encompassing responsible sourcing, water-efficient manufacturing, renewable energy for the supercharger network, and building a battery material recycling ecosystem. The goal of safety is also paramount, with Tesla vehicles designed to be some of the safest globally, leveraging real-world data and over-the-air updates for optimization. Employee dedication and shareholder input are acknowledged as vital components driving Tesla's success and mission forward.

• 00:11:43

  During the 2024 Annual Shareholder Meeting, the speaker emphasized Tesla's commitment to setting high standards for ethical behavior, corporate citizenship, and governance. They acknowledged the dedicated and engaged board of directors, active retail shareholder base, and encouraged shareholders to enhance engagement with Tesla's platform. The meeting was officially called to order at 3:40 p.m. Central with the declaration of polls being open. Various agenda items included the election of directors, approval of executive compensation, redomestication of Tesla from Delaware to Texas, and ratification of stock options and auditing. Stockholders were encouraged to vote for the proposed director nominees and other Tesla proposals.

• 00:15:46

  Tesla's board has prepared a statement opposing the seven stockholder proposals described in the proxy statement. The first proposal is for reducing director terms to one year, but the board recommends against it citing the need for accountability every other year. The second proposal is for simple majority provisions in governing documents, which the board also recommends against. The proposals aim to declassify the board for accountability and lower the voting threshold for more flexibility. Shareholders are encouraged to vote on proposals six and seven for a more democratic Tesla that can attract customers, employees, and shareholders seeking a better future.

• 00:19:28

  John Chetan proposed Proposal Seven, which suggests replacing voting requirements in the charter and bylaws with a simple majority vote, similar to what the Tesla board of directors supported in 2022. This proposal aims to improve Tesla's shareholder rights, given the current CEO Elon Musk's behavior in threatening to withhold advanced technology unless a significant paycheck is granted. The proposal is crucial for ensuring shareholder rights, especially with the board's history of conflicts of interest. Dr. Kristen Hull presented Proposal Eight on behalf of the New York State Common Retirement Fund, advocating for annual reporting on anti-harassment and discrimination efforts, despite the board's recommendation against it.

• 00:22:57

  The speaker focuses on investing in climate solutions through the Long View Large Cap Fund with the help of Amalgamated Bank AP7 and Juna. They express pride in their early ownership of Tesla but raise concerns about workplace management issues within the company, such as harassment and discrimination. They request an independent report on Tesla's efforts to prevent workplace abuse. Another stockholder proposal by S so Investment Group urges Tesla to adopt a non-interference and collective bargaining policy to uphold international labor rights standards.

• 00:26:43

  Despite Tesla's revised Global human rights policy acknowledging workers' rights to free association and collective bargaining in April 2023, the statement included qualifiers suggesting adherence to local laws over international standards. Tesla has faced criticism for allegedly not respecting workers' rights in Sweden, the US, and Germany, culminating in labor strikes and adverse decisions by regulatory bodies. Shareholders are encouraged to vote for relevant proposals to address labor rights issues and mitigate operational and reputational risks. Additionally, a shareholder proposal for annual reporting on electromagnetic radiation and wireless technologies has been recommended against by the board.

• 00:30:07

  Health experts have raised concerns about the public health risks posed by electromagnetic fields (EMF) emitted by Tesla vehicles, which use wireless equipment such as Wi-Fi and radar. The World Health Organization considers EMF and wireless radiation as possible carcinogens, similar to some pesticides and gasoline. Companies like Lloyds of London and Swiss Re have deemed EMF uninsurable due to potential health and environmental damages. Shareholders are demanding transparent information from Tesla on measured EMF exposures and efforts to reduce them. The company must prioritize safety by providing clear information on EMF levels and implementing measures to mitigate risks, including shielding vehicles and allowing wireless antennas to be easily turned off. Investors can play a role in encouraging Tesla to take a leadership position in reducing EMF exposure.

• 00:33:42

  Tesla's lack of incorporating sustainability metrics in executive compensation is concerning given their mission to accelerate the world's transition to renewable energy. The recent voiding of the CEO's $56 billion pay package highlights the need for fair compensation plans that align with stockholders' best interests. The opposition to this proposal argues that the existing executive pay structure is necessary for motivation, dismissing ongoing controversies faced by Tesla. Stockholders have the right to vote for leadership compensation based on financial and sustainability performance. The proposal for a moratorium on sourcing minerals from Deep Sea mining is recommended against by the board due to potential risks to Tesla's operations and the environment.

• 00:37:27

  The 2024 annual shareholder meeting at Tesla addressed concerns about deep sea mining, with a call for a ban, moratorium, or precautionary pause on the activity. Despite Tesla's membership in the OECD and IRMA mining protocols, these do not apply to deep sea mining. Competitors like BMW, Renault, and Volkswagen support the ban, while even General Motors has stated they do not plan to use deep sea minerals. A former Tesla board director's involvement with a company leading deep sea mining raises concerns about Tesla's stance on the issue. The meeting also saw approval of various proposals, including the appointment of directors, executive compensation, and the redomestication of Tesla from Delaware to Texas.

• 00:41:46

  At the 2024 Annual Shareholder Meeting, Elon Musk emphasized Tesla's goal of achieving a sustainable global economy. He discussed the rapid improvement of Full Self Driving (FSD) version 12 and the potential for autonomous taxi services. Musk expressed confidence in Tesla's long-term value and highlighted the company's record profitability in the energy business. He reiterated the importance of viewing Tesla not just as an auto company but as a leader in autonomy solutions. Overall, Musk's presentation focused on the company's achievements and future prospects, emphasizing innovation and sustainability.

• 00:46:35

  During the 2024 Annual Shareholder Meeting, Tesla's CEO highlighted the company's progress in solving sustainable energy challenges through electric vehicles, stationary storage, and solar technology. He emphasized the value of autonomy and the rapid advancements in self-driving capabilities, urging skeptics to experience the technology firsthand. The CEO confidently stated that autonomous driving technology will soon surpass human safety standards. He also discussed the monetization of Tesla's autonomous vehicle fleet through a model similar to a combination of Airbnb and Uber, where Tesla-owned cars operate like taxis and customer-owned vehicles can be added to the network for shared usage. He expressed optimism about the future trajectory of Tesla's autonomous driving capabilities and its potential for widespread adoption.

• 00:49:52

  During the meeting, Elon Musk discussed the concept of adding cars to a fleet to generate revenue while the owner is not using it. He expressed confidence that the earnings from the car in the fleet will surpass the monthly payment, with most of the profits going to the car owner. Musk admitted to being optimistic but highlighted the importance of optimism in driving innovation. Additionally, he referenced a $5 trillion valuation prediction for Tesla based on vehicle autonomy, potentially increasing the company's value by over 10 times. Musk also acknowledged the accuracy of ARK Invest's analysis on autonomy.

• 00:53:21

  Elon Musk envisions creating humanoid robots like Optimus for various tasks, estimating a potential market of 10-30 billion units. With Tesla aiming to produce a billion humanoid robots annually, Musk anticipates a substantial profit margin. He projects a trillion dollars in profits per year if Tesla captures a 10% market share, potentially leading to a trillion-dollar valuation solely from Optimus. Musk's ambitious plans could surpass the current most valuable company by tenfold, marking a significant leap into uncharted territory for Tesla.

• 00:57:04

  The speaker emphasized the importance of ensuring that robots are friendly and highlighted the company's progress in reducing emissions and striving for sustainability. They discussed the potential impact of autonomy on carbon emissions and highlighted the positive aspects of Tesla's manufacturing processes, including energy efficiency and sustainability practices. The speaker also mentioned improvements in battery longevity, factory safety, and the affordability of electric vehicles, showcasing Tesla's commitment to environmental responsibility and innovation.

• 01:00:37

  During the 2024 Annual Shareholder Meeting, the Tesla team celebrated reaching a milestone of producing over 7 million vehicles by the end of the year, with their Fremont factory being the highest volume auto factory in North America. The team expressed pride in the success of the Cybertruck, dismissing initial skepticism and showcasing its impressive features, such as a 48-volt low voltage system, 800-volt drivetrain, and record-breaking performance capabilities. CEO Elon Musk declared the Cybertruck as one of their best products, emphasizing its innovation and uniqueness. Additionally, Tesla introduced the upgraded Model 3 as a highly recommended and affordable option at $216.

• 01:04:23

  The speaker highlights the Tesla's cost-effectiveness in terms of total ownership cost, emphasizing the Model 3 Performance's impressive speed compared to a Porsche 911. They discuss the success of the Model Y as the best-selling vehicle globally, as predicted, and the upcoming production increase for the Tesla Semi, expecting significant financial impact due to its economic advantages over diesel trucks. The focus on commercial vehicle buyers' objective decision-making and potential for reducing carbon emissions is emphasized. Excitement for new upcoming products is also teased, hinting at their uniqueness and impact.

• 01:08:05

  The speaker discusses the growth of Tesla's supercharger network, emphasizing the company's commitment to expanding it. They highlight plans to spend half a billion dollars on supercharger deployment and open new markets worldwide. Additionally, Tesla is making efforts to collaborate with other car companies by providing adapters for access to the supercharger network. The speaker also mentions advancements in battery production, particularly with the Tesla 4680 cell, which is expected to be highly competitive in terms of manufacturing efficiency.

• 01:11:34

  Tesla has focused on achieving independence in cell manufacturing to ensure resilience in the face of geopolitical changes. The company is making steady progress in building cathode and lithium refineries, with a clear emphasis on vertical integration. Tesla is on track to increase energy deployment significantly, with a two to 300% year-over-year growth expected in stationary pack installations. The upcoming Powerwall 3 and Mega Pack 3 are highlighted as groundbreaking products that will further enhance Tesla's energy storage capabilities.

• 01:14:49

  At the 2024 Tesla Annual Shareholder Meeting, it was highlighted that Tesla is more than just a car company, with a significant focus on software engineering. Their energy storage and services sectors are performing well financially. Tesla's internal software, including the Tesla operating system, is considered superior to that of other companies. They are leading in real-world AI, surpassing competitors like Google, particularly in video-based decision-making. Tesla excels in chip design, with advancements in AI chips for their cars, such as Hardware 4 and the upcoming Hardware 5 (ai5), which outperform offerings from other chip manufacturers like NVIDIA.

• 01:18:27

  Tesla has made significant progress in chip design for their cars, developing the best real-world AI software and AI inference chip from scratch. They are currently training cars on Hardware 3 but will start separate training on Hardware 4 later this year, with Hardware 4 having significantly better resolution and performance compared to Hardware 3. Hardware 5, expected in about 18 months, will be even more capable, offering a staggering amount of compute power while being power-efficient for mobile applications like cars. This progress aims to continuously improve the reliability of Tesla vehicles and will also be integrated into their autonomous driving system, Optimus.

• 01:21:50

  The power usage of Tesla's autonomous driving system varies based on the complexity of the environment, with simpler scenarios requiring less computing power than congested traffic situations. Elon Musk envisions a future where the Tesla Fleet, potentially consisting of over 100 million vehicles, could collectively offer significant computing power for various applications. This distributed computing network could be likened to Amazon Web Services (AWS), providing valuable inference compute capabilities when not in autonomous mode. The current main challenge is not computing power for training the system, but rather assessing different versions of the software due to the infrequency of interventions during testing.

• 01:24:58

  In the 2024 Annual Shareholder Meeting, Elon Musk discussed the importance of having a large fleet of vehicles for testing Tesla's Full Self-Driving (FSD) technology. He highlighted the need for millions of vehicles on the road to gather data and improve the FSD system continuously. Musk also mentioned the development of Hardware 4 for training purposes and the upcoming release of version 12 of the FSD software, which will bring significant improvements to the existing fleet of Tesla vehicles. Additionally, he described a future scenario where Tesla owners can choose to have their cars participate in a shared fleet for collective learning and updates, creating a network of millions of interconnected self-driving vehicles.

• 01:28:27

  In summary, Elon Musk discussed the potential for millions of autonomous driving cars to be utilized for longer periods each week, increasing efficiency. He described the progress made with Optimus robots, highlighting their evolution from being simple props to performing practical tasks in Tesla's factories. Musk expressed confidence in scaling up production of Optimus robots, envisioning a future with thousands employed at Tesla. He emphasized the advancement in autonomy levels, enabling seamless communication and adaptive learning capabilities. Musk predicted a significant increase in the presence of humanoid robots globally, with Tesla leading in this technology sector. He also noted the challenges faced by robot startups, highlighting the need for comprehensive design and development to achieve success with robots like Optimus.

• 01:32:03

  Tesla is working on developing a humanoid robot with advanced capabilities, including 22 degrees of freedom to play the piano. The company faces challenges like ensuring safety and efficient design for manufacturing. Tesla boasts top electrical and mechanical engineering, AI expertise, and production capabilities necessary for this project. Optimus, the robot, is anticipated to have a significant impact with a potential market cap of $25 trillion, exceeding the estimates for autonomous transport.

• 01:35:22

  The speaker acknowledges the immense amount of work required to achieve their goals but expresses confidence in the progress being made. The audience member praises Elon Musk for his contributions to freedom of speech and the importance of the First Amendment. Elon Musk emphasizes the significance of free speech and explains the rationale behind acquiring Twitter as a platform for free speech. Another audience member from Tesla sales asks about bundling software packages, specifically for Full Self-Driving (FSD), to potentially increase adoption rates. Musk mentions the idea of offering free trials with significant FSD improvements to encourage more customers to try the feature.

• 01:38:57

  Elon Musk responds to a question about affordability of Disneyland trips with Tesla stock ownership. He mentions working on autonomy and discusses potential consequences of advancing technology, emphasizing the importance of safety in Tesla's development process. Musk highlights the benefits of self-driving cars in improving road safety compared to human driving statistics.

• 01:41:50

  Attendees at the shareholder meeting expressed their admiration for Elon Musk and their belief in Tesla becoming the most valuable company in the world. Musk referenced an analysis by ARK Invest predicting a market cap of 5 to 7 trillion by 2029. The possibility of bringing back the referral program and introducing a passenger van was discussed, with Musk mentioning a potential reexamination of the referral program in the next quarter to determine its impact on pricing. He emphasized the importance of making Tesla more affordable to increase demand, noting that affordability is a significant factor limiting sales.

• 01:45:06

  During the meeting, the focus was on making Tesla vehicles more affordable for a wider customer base, highlighting the need for affordability as a key factor in expanding Tesla's market reach. There was a question raised about the ongoing transfer of Full Self-Driving (FSD) features between Tesla models, with the complexity of implementation and revenue considerations being cited as reasons for the current limitations. The shareholder meeting also included expressions of admiration for Elon Musk and concerns for his well-being amidst global uncertainties, emphasizing the importance of maintaining his safety and health for the future of the company. Elon Musk acknowledged the sentiment and mentioned the need to focus on personal well-being while dealing with the high-profile challenges at hand.

• 01:48:24

  There is a high probability of being targeted by a homicidal maniac if they hear your name frequently, as seen by two incidents in the past seven months. The speaker is cautious and has stopped signing things to avoid drawing unwanted attention. They mention the importance of staying safe and alive. In response to a question about a home interaction system, Elon Musk clarifies that Tesla does not have such a system in the product timeline but emphasizes the potential for a highly efficient HVAC system that incorporates learnings from car technology, including filtration, humidity control, efficiency, and quiet operation.

• 01:51:22

  The speaker expresses gratitude for the Cybertruck and shares a humorous anecdote about their child wanting to use the Cybertruck to skip lines at Disney. They request the opportunity for children to tour the Tesla factory, suggesting a more limited and safe arrangement. They mention former President Trump's surprising support for Tesla and attribute it to conversations and his friends owning Teslas.

• 01:54:19

  During the 2024 Annual Shareholder Meeting, a fan named Keanu asked Elon Musk about how interventions will be handled in driverless cars when the driver is taken out of the seat. Musk explained that the goal is to ensure minimal interventions, particularly around vulnerable road users like cyclists and pedestrians. In case of rare interventions, the car will contact for assistance and can potentially be remotely controlled. Another attendee from Kazakhstan thanked Musk for installing superchargers and invited everyone to an afterparty to celebrate community efforts. A shareholder inquired about achieving affordability in Tesla vehicles with the advancements in battery technology, to which Musk highlighted that the cost of lithium-ion cells has significantly decreased, making it more about optimizing the rest of the car for affordability.

• 01:57:43

  Car manufacturers faced challenges due to a surge in demand for battery packs, causing prices of materials like lithium to skyrocket. As a result, some suppliers increased supply while orders from other manufacturers declined. Despite market difficulties, Tesla plans to increase production to make electric vehicles more affordable by optimizing costs of the numerous components in a car. Tesla aims to achieve cost parity in battery cell production by the end of the year, despite fluctuations in supply and pricing similar to the dram chip industry. An investor praised Elon Musk's commitment to innovation and referenced their conversation about the Cybertruck in 2013.

• 02:00:58

  The Cybertruck has been well received on its tour, with interest from friends all over the world in Asia, Canada, and Europe. Currently, it is only available in North America due to design constraints and the need to achieve higher production volume and cost efficiency before expanding internationally. Transitioning from a prototype to full production is challenging, and reducing costs further is even more difficult. Despite high demand globally, the focus is on scaling up production and lowering costs before considering international sales.

• 02:03:53

  The speaker discusses the intense cost grind and the need to recertify the car for compliance in various markets. Questions from shareholders include inquiries about the Foundation series production numbers and timeline, neural net scaling laws for training FSD, and the challenges of handling massive amounts of data for training. Elon Musk emphasizes the focus on getting the car to drive itself, the complexities of chip-level problem-solving, and the substantial efforts required for training cluster operation and high uptime. He mentions a doubling of improvement between each version of the neural net models.

• 02:07:04

  Improvements in Tesla's autonomous driving technology have led to almost zero static object collisions, resulting in a significant increase in miles between interventions. The complexity arises when dealing with dynamic objects such as intersections with broken traffic lights or drivers not obeying traffic laws. Testing and comparing different AI models to determine the most effective one is challenging but essential. Utilizing simulations, shadow mode testing, and analyzing data from millions of cars help identify errors and enhance AI models. The key focus now is on effectively evaluating and testing AI models to ensure continued progress in self-driving capabilities.

• 02:10:26

  Tesla will focus on handling intersections without traffic lights, stating they will excel in this area. They plan to test their cars in thousands of complex intersections in the US to compare different models. They mention Hardware 4's capabilities and anticipate continuous improvement in autonomous driving. Tesla aims to enhance Optimus, their robot with wheels, using large language models, customizable personalities, and understanding user preferences. They envision a future where self-driving cars and humanoid robots are common, making it abnormal not to have a robot companion. Integrating Optimus into various industries may require specialized training initially but is expected to become more generalized in the future.

• 02:14:01

  Fair B training focuses on simplifying tasks into training primitives, such as walking or picking up objects, which can be generalized to different activities. It is anticipated that by 2026, the technology will be able to perform a wide range of tasks efficiently. The goal is to create a cost-effective humanoid robot at scale, emphasizing high volume production to reduce costs. Despite Elon Musk's significant contributions, he believes Tesla has a strong future even without him, as innovation and the pace of development are key factors.

• 02:17:44

  The speaker emphasizes the importance of being faster and better in innovation in order for Tesla to achieve greater valuation and create valuable products. They express gratitude for support from Tesla employees and the board. A person named Jessica living in an RV park in South Texas thanks Tesla for the Starship program and suggests allowing overnight parking for Tesla and electric vehicles for those attending Starship launches. Another person named Stephen expresses gratitude for Elon Musk's contributions to humanity and inquires about Tesla's lithium refining operations. Elon Musk acknowledges the support and looks into the feasibility of allowing overnight parking for Tesla vehicles at RV parks and addresses Stephen's question on Tesla's lithium refining efforts in Texas.

• 02:20:52

  The speaker mentioned the importance of understanding lithium refining and potential geopolitical challenges in the supply chain. They emphasized the need for Tesla to be careful with geopolitical risks and ensure the company's resilience in worst-case scenarios. In another part, a person introduced a platform called Tesmi for Tesla owners to offer learning experiences related to Full Self-Driving (FSD) technology and expressed interest in collaborating with Tesla. Finally, there was a suggestion for an intermediate stage between supervised FSD and robot taxi called a "robot rental car" that could be a commercializable idea for Tesla to consider.

• 02:23:58

  The speaker discusses advancements in Fully Self-Driving (FSD) technology, highlighting the progression from version 3 to version 6 and the radical improvements with each version. They mention the goal of commercializing FSD sooner and with more certainty, emphasizing the transformative potential of the technology. The speaker expresses gratitude for support and concludes the speech.