Good afternoon, everyone. Good afternoon, everyone, and welcome to Testlast 2023 annual Cheryl the meeting in Austin, Texas. My name is Martin Vieca. Vice-Personal Investor Relations, and I will be the chair of today's meeting.
First of all, I really wanted to thank everyone who continues to do this trip on annual bases and shows up every time. It's really quite something that we have a following as dedicated as this, so thank you very much for that. I also wanted to thank our first time visitors. I know that many of you want a lottery to come for the first time to a Testlast 2020. So probably noticed that unlike many other Cheryl the meetings of other companies, this one tends to be a bit more fun, so I hope you enjoy that. But the last thing I really wanted to say is that just thank you so much for all your support over the years. We really feel like you're part of our mission, you know, part of our, you know, story, and it's something we're truly, truly value. So thank you so much for that.
There will be two parts of today's meeting. First the formal part of the meeting where we will cover items that stockholders have been asked to vote on, as well as any other matters that are properly presented. And after the voting, I will introduce Testlast co-founder and CEO and TechnoKink, Elon Musk, who will give a presentation about Testlast's year in review.
But at this time, I'd like to thank the members of the Testlast team and the board who are here with us here today, representing from PricewaterhouseCoopers, Testlast's independent auditor present with us as well. But before we begin, I'd like to introduce you to Testlast Chair Robin Denholm, who would like to say a few words.
I'm a little bit shorter, so hello everyone. On behalf of the board, I am really honoured to welcome you all here today to the 2023 annual shareholder meeting. It's wonderful for me to see everyone in the room today and also the many investors that have joined us today via the virtual livestream.
It's our third straight year of having the annual meeting here in Austin. At the first meeting, the factory was still in the early stages of development with equipment being installed and commissioned. During the 2022 meeting, production had started to ramp as we produced about 1600 vehicles that week. And now, less than a year later, we have more than tripled the amount, having achieved production of 5,000 cars in a single week. A huge congratulations to the Texas team. And on top of that, we are getting ready to roll out our first cyber trucks.
This exponential trajectory of the Gigafactory here in Texas is a reflection of Tesla as a whole. In 2022 was another record breaking year for us with deliveries growing by 40 per cent year over year. And that trend has continued in the first quarter of 2023. We would not be able to achieve this growth without the dedication of our amazing employees. I've been fortunate enough over the years to actually travel to many of our locations, all of the Gigafactories around the world. And I can tell you that I've witnessed firsthand how our exceptional employees in our global talent across the world has together achieved our mission or furthered our mission at accelerating the world's transition to sustainable energy.
Here you are, Dr. Ploisley. This year here in Texas, we also had our very first investor day, where we introduced our company leaders from design to engineering to supply chain, manufacturing, energy and charging. And they each spoke about the role of their teams in making our mission come to life. And I was thrilled that investors were able to hear directly from this outstanding leadership team that Elon has been able to put together over many, many years.
It is on the strength of their leadership and the hard work of our dedicated employees around the world that I believe we are not only whether the macroeconomic environment that we've seen this year, but also continue to be in the strongest position ever to advance Tesla's mission. As a startup, Tesla proved that electric vehicles could be fun with the roadster. They could even be better than gas powered vehicles in every single way with the SNX and could be all of these things as well as affordable with the Model 3 and Model Y, which last quarter became the best selling vehicle for any kind in Europe and the best selling non-pick-up vehicle in the United States.
我相信,多亏了他们的领导能力和我们在世界各地的敬业员工的辛勤工作,特斯拉不仅能够应对今年所面临的宏观经济环境,而且继续处于历史上最强的地位,推进特斯拉的使命。作为一家初创企业,特斯拉通过推出Roadster证明了电动汽车也可以很有趣。而 Model S、Model X车型则说明电动汽车在所有方面都可以比汽油车更出色。最近,Model 3和Model Y的发售让电动汽车的价格变得更贴近大众,此外,这两款车型还成为了欧洲所有车型中销量最好的车型以及美国非皮卡车型中销量最好的车型。
And today, as one of the world's largest global companies, we plan to change the paradigm again by forging the path to achieving a global sustainable energy economy as set out at our investor day in our master plan 3. As Tesla glows, so do our customers positive impact on carbon emissions. When I stood here last year, I proudly announced that in 2021, our customers avoided emitting 8.4 million metric tons of greenhouse gas emissions, the equivalent of over 20 billion miles driven by internal combustion engine vehicles. Today, I can tell you that in 2022, our customers avoided releasing over 13.4 million metric tons of greenhouse gases into the atmosphere, the equivalent of over 33 billion miles of driving of internal combustion vehicles. That's an almost 60 per cent increase in total emissions savings year over year. Putting more of our products in customers' hands helps grow that number and our goals of making our products greener over time and further decarbonising the electric grid will help multiply that effect. As part of that goal, I am delighted to say that as described in our recent impact report, our global supercharging network was again 100 per cent renewable in 2022. We've been able to achieve all of this while maintaining industry-leading margins and generating strong cash flows over the last several years.
Going forward, we will continue our focus on capital investment plans to support our future growth, with investments in batteries, in vehicle production, including the next generation platform, in the building of our lithium refinery that we recently broke ground on, in the energy storage factories in our sales and service footprint and in our charging network among other things. Before I hand it back to Martin, I would also like to thank Hero Mizuno for his dedicated service to the Tesla shareholders and the board these past three years. I would also like to express our enthusiasm on behalf of my fellow directors at the prospect of JB Strawble joining our board. I don't have to tell you that his passion for Tesla and green tech will make him an important asset in our mission to accelerate the world's transition to sustainable energy.
So again, on behalf of our full board, thank you for your tremendous support and welcome to your 2023 shareholder meeting. And with that, I'll hand it back to Martin.
Thank you Robin. I will now call the meeting to order. Please refer to the meeting agenda that has been provided to you and posted on the virtual meeting site. The time is now 3.10 pm central time and I declare the polls are now open. We have already received over the last few weeks voting proxies from stockholders meeting that almost all the votes that will be counted are already submitted before today. However, if you wish to vote your shares or change your prior vote, you may do so through the virtual meeting site. For those who are in person here today, ballots and ballot boxes were available to you at the check-in.
Tesla's board of directors has appointed computer share trust company to serve as inspector of elections. Computer share has taken and signed an oath as inspector and has certified that starting on April 6, 2023, the proxies materials or a notice of internet availability of proxies materials were mailed or provided to all Tesla stockholders of record March 20, 2023. We have majority of outstanding shares represented at the meeting so I declare that there's a quorum present at the meeting and we may proceed with the meeting.
The items on the agenda are as follows. 1. The election of class 1 directors Elon Musk, Robin Denholm and JB Strubel to serve for a term of three years or until the respective successors are duly elected and qualified. 2. To approve executive compensation on a non-binding advisory basis. 4. To ratify the appointment of price waterhouse scoopers LLP, a Tesla's independent public registered accounting firm for the 2023 fiscal year. 5. To vote on a stockholder proposal included in our proxy statement which relates to the reporting of key person risk. 6. To vote on a stockholder proposal which the stockholders did not seek to have included in our proxy statement.
This last board has recommended that our stockholders vote for each of the director nominees for the approval by non-binding advisory vote of executive compensation and the ratification of appointment of PWC as an independent registered public accounting firm for fiscal year 2023. 5. To vote on a stockholder proposal and every three years for non-binding advisory vote for the frequency of future votes on executive compensation.
With respect to stockholder proposal included in our proxy statement which relates to the reporting on the key man risk, Karen Roberts-Doteer on behalf of Sumtris is here to present this proposal. Mr. Roberts-Doteer, can you please identify yourself? I would like to invite you to speak. You will have three minutes.
Hello. Thank you for having me here today. Under discussion is a shareholder proposal concerning key person risk at Tesla requiring Tesla's board to draft a report covering the steps taken to ameliorate the potential impacts of loss of key persons in the company.
However before I begin, I would first like to say thank you to Mr. Musk. For so many of us, you stepped into fields where we had so desperately wanted to see change and through bringing in a talented team willing to put in long hours, you dragged reluctant industries kicking and screaming into a better future. For that, thank you, building up this juggernaut around us which as you largely put it runs itself these days. Thank you for that.
Now here we are today. At a time when Tesla's technological leadership should be on display, the investment community largely sees as a drift with management focused on all matters not Tesla. Watching as Tesla's brand favorability dropped by 15 points last year, something that costs us margins.
We have such a spectacular product pipeline at team that knows how to execute at scale with low costs of good sold. Something that we are not being properly recognized for. Should go without saying, but apparently bear is repeating that if you cannot produce with low cogs, you have no future. When I look around the auto industry these days, I see a lot of companies that have no future. And that's a success on behalf of an incredible team here at Tesla that deserves recognition.
When people look at this company, that's not what they see. They see the company as a synonym for its CEO. And then the discussion turns to everything except for where it should be focused. It's my sincere hope that by introducing this proposal we can not only accelerate the development of management at Tesla, but also increase its visibility.
The fact that this company is so much more than its key persons is something that the public and the investment community should see. A founder often finds their greatest success in ensuring the future of the company and the development of the management talent who can come after them. Think Tim Cook at Apple, Steve Ballmer at Microsoft and so forth. People who are ready from day one to execute without controversy, without distraction, and build a future for the company.
I encourage the board should embrace this opportunity in the most public manner possible to showcase the future being built right here. So that the discussion among the public and the investment community revolves around that and not around every public statement on every other topic made by the leadership. I strongly encourage the board, the shareholders support this proposal and for the board to embrace it.
The board is recommended that our stockholders vote against this proposal. For the reasons set forth in our statement of opposition in our proxy statement.
董事会建议我们的股东反对这个提案。原因在我们的投票权委托书反对声明中列出。
Finally, as you saw and investor advocates for social justice would like to raise a proposal from the floor. The proponents did not seek to have their proposal included in the proxy statement. The board recommends that our stockholders who are entitled to vote on this proposal vote against it.
As a reminder, as is disclosed in a proxy statement, I've been advised by the proxy holders that they intend to vote all shares of stock over which they have discretionary authority against this proposal. Only shareholders who are shareholders of record or have obtained a legal proxy made vote for this proposal after it is presented.
Courtney Wicks representing investor advocates for social justice is here to present the proposal. Miss Wicks, I would like you to speak. You will have three minutes. Thank you.
Good afternoon, Tesla Board members, management, employees and shareholders. My name is Courtney Wicks and I am the executive director for investor advocates for social justice. I'm here on behalf of As You So and the Sisters of the Good Shepherd who have filed shareholder proposals in the past on child labor and human rights abuses and Tesla supply chain.
下午好,特斯拉董事会成员、管理层、员工和股东们。我是科特尼·威克斯,是“投资者倡导社会正义”组织的执行董事。我代表“As You So”和“善牧姐妹会”,曾就特斯拉供应链中的童工和人权侵犯问题提出过股东提案。
我们关注的是可持续性和道德价值观,并且确信这些问题不应被忽视。这些提案旨在推动特斯拉采取行动,制定更严格的供应链规范,以消除童工和人权侵犯的风险。
在全球范围内,越来越多的投资者越来越关注供应链透明度和社会责任。我们希望特斯拉能够成为这方面的领导者。谢谢。
I stand here today to call on shareholders to vote yes on requesting Tesla to conduct a third party report detailing the company's efforts to eradicate child and forced labor in its supply chain. The human rights risks that permeate throughout Tesla's value chain when not adequately addressed harm shareholder value and undermine Tesla's ability to lead the just transition.
Growing attention and concern have been placed on child labor in coal-bump mining in the Democratic Republic of the Congo as well as on forced labor in China's Xinjiang region.
70% of the world's coal-bump needed for EV batteries are sourced in the DRC over 40,000 children working artisanal and small scale mining often without protective equipment and in dangerous spaces that frequently collapse.
全球 70% 用于 EV 电池制造的燃煤碾压所需的材料都来自于刚果民主共和国。然而,在刚果,有超过 40000 名儿童在艺术和小型采矿中工作,并经常在没有保护设备和危险的环境中工作,这些环境经常会导致坍塌事故。
Many children are seriously injured or killed in the mining process. The Tesla's latest sustainability report claims to have it audited 80% of the miners and refiners in their coal-bump supply chain against responsible production standards.
However, there are many industry back standards, some of which are weak and it isn't clear what percentage of audits were conducted by which initiative. It is also unclear how the companies do diligence ensures coal-bump source from child labor is not intermingled in the industrial coal-bump supply chain.
Subsequently, an estimated 1.8 million people have been subject to state imposed genocide, detention, and internment camps, and forced labor in the Xinjiang Weeger region. A recent study concluded that automakers cannot conduct meaningful audits in this region.
The recent Weeger Force Labor Prevention Act in the United States sent an inquiry into Tesla supply chain highlights the regulatory risk Tesla faces. We believe a third party audit would provide greater transparency into how Tesla plans to eradicate child and forced labor from its supply chain.
One of Tesla's competitive advantages is its sustainable leadership. Tesla, its board of directors and management team have a moral obligation to pursue ethical sourcing practices that do not rely on the lives of children or enslaved people.
Tesla can continue to make a true leadership difference that forges a sustainable economic future that is anchored by innovation, empathy, human development, and shareholder value.
Thank you. Thank you, Ms. Wicks. We will now accept votes for against or to us stain for this proposal, but again, only for record holders or legal proxy holders. Please note, this is the final opportunity to submit proxies in order for them to be counted. I declare the polls are now closed.
Based on proxies we have previously received, I'd like to announce on preliminary basis that our stockholders have approved the recommendations of the Tesla board on all agenda items, except that shareholders have recommended one year for non-binding advisory vote on the frequency of future votes on executive compensation.
This means that I would like to officially announce our new addition to the Tesla board, maybe Stravel. After the final tabulation is completed, we will announce specific vote tallies filing in the filing form 8K within four business days of this meeting.
That concludes the official business of today's shareholder meeting, which is now adjourned.
今天的股东会议正式事项已经结束,现在宣布会议休会。意思是告诉大家会议已经结束了。
During the course of the following session, we may discuss our business outlook and make forward-looking statements, such statements are predictions based on current expectations.
在接下来的会议中,我们可能会讨论我们的业务前景并发表前瞻性声明,这些声明是基于当前期望的预测。
Early events could differ materially due to a number of reasons uncertainties, including those disclosed in our most recent form 10K and 10K file links with the SECs. Such forward-looking statements represent our views as of today, should not be relied on thereafter, and we'd disclay from any obligation to update them after today.
I just want to say I love you guys. We've got a lot of great news to talk about today. The Tesla team has done an incredible job of executing over the past year, and we have many exciting years ahead of us.
With the Tesla Mass Plan Part 3, which admittedly was quite technical. We wanted to go into a lot of technical depth. So it was clear that what we were saying was not just, we're not merely assertions, but that they were backed up with physics and with real data that it's realistic.
And with the Mass Plan Part 3, we wanted to basically, the goal is to give people hope, realistic hope, and maybe hope is even the wrong word. But simply to say 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.
在Mass Plan Part 3中,我们的目标是给人们带来希望,现实的希望,也许“希望”这个词不是很贴切。我们希望传达的是,我们正在迈向全球经济的可持续发展之路,我们正在加速这个进程,只要我们不自满,它最终一定会发生。
So I'll just kind of rush through a recap of the Mass Plan Part 3. But some of the salient points are that it will actually take less energy to go sustainable not more energy. It's actually more, and some of these things may sound very obvious, but it's more energy efficient to go sustainable not less.
And there's less mining that is required for a sustainable energy economy, not more. Also very important. And I heard a question raised about cobalt mining.
可持续能源经济需要的开采是更少而非更多。这一点非常重要。我听到有人提出了关于钴矿开采的问题。
And you know what? We will do a third party audit. So, in fact, we'll put a webcam on the mine. And if anybody sees any children, please let us know.
你知道吗?我们将进行第三方审计。实际上,我们将在矿里安装摄像头。如果有人看到任何孩子,请告诉我们。
I don't want to go off an attention too much on that front, but it's very important to appreciate that most of our battery packs are iron based, majority of our battery packs are iron based, not cobalt, and then our other battery packs are nickel based, not cobalt. The nickel batteries use a little bit of cobalt as a binder, but only a tiny amount.
In contrast, your phones all use 100% cobalt. I recommend complaining to the phone manufacturers. But even for the small amount of cobalt that we do use, we will make sure six-wasties Sunday that no child labor is being exploited. Obviously, we are a company that cares a lot about doing the right thing, and we don't want to loot ourselves or to loot anyone else.
So, yeah, come. So, again, recapping Master Plan Part 3, it's really a point is to say that it is very doable. It is happening. We need a three-fold increase in solar and wind. We need to, in the middle, some of these 29-fold increase in vehicle stationery and thermal battery production.
Actually, in a nutshell, the way to think about sustainability is the faster we can make our battery packs, the faster we can move to a sustainable energy economy. That's the fundamental limiting factor. So, let's grab some water here.
So yeah, I can't emphasize that point enough. The rate of lithium-ion battery production fundamentally decides the rate at which the world transitions to sustainability because the batteries are needed for all forms of transport and for stationary storage given the intimate nature of solar and wind power.
So, we do invite people to critique our analysis because any given analysis is going to be to some degree wrong. So that's why we put it out there. Looking for critical feedback to say, well, perhaps we've got something wrong, perhaps some things need to be adjusted. But generally, the feedback we've gotten is that actually our analysis is quite accurate. And we've not seen any revolutions thus far that would cause us to change our assumptions.
So, it means roughly 240 terawatt hours of battery pack or 240,000 gigawatt hours of battery need to be produced. But it'll only take 0.2% of land area for solar and wind. So, it's not like we need to carpet the earth with solar and wind. It's just literally a fraction of a percent. Roughly at $10 trillion manufacturing investment, which relative to the global economy is actually a small number. Yeah, roughly 10% of the world economy.
I think 10% of the world economy is a small price to pay for a sustainable energy future. It's also true that even when manufacturing in the emissions required to produce an electric vehicle, which for now are a little higher than gasoline vehicles, when you look at the emissions over time, electric vehicles absolutely win by a long shot. And as we're seeing the cost and the emissions required to produce an electric vehicle are dropping rapidly over time. And we're going to get to the point where an electric vehicle is cheaper than a gasoline vehicle.
So, in 2022, we avoided releasing about 13 million tons of CO2, reduced manufacturing GHG per vehicle by 30% and reduced water usage by 15%, despite massive increases in output. We also made our factories safer, which is really important. So we track the injuries per person. And we believe at this point we are best in industry or have the lowest injuries per person.
So, we're now actually quite a big company from a headcount standpoint. This is our direct employment number. So this does not count contractors. And for every manufacturing job, depending on how you count it, there are at least five, sometimes up to 10 jobs created. Because you've got to look at the total supply chain, as well as the all of the support functions.
So, when you have creative factory like this, you actually create jobs for teachers, lawyers, operatives, electricians, and restaurants, and everything that's required to support a person at a factory. And this is why countries and states are so interested in having manufacturing facilities in their location. So anyways, it's a lot of people gainfully employed doing very useful things. We received just 3.6 million job applications last year.
And once again, the top two most desired companies for engineers on Earth were SpaceX and Tesla. You know, at the end of the day, the competitiveness of any given company is a function of where are the most talented people interested in working? That is the team that's going to win. In fact, if I say this is generally the case, if you look at any given company and say, where are the smartest, most driven people going to work, that company is going to win.
So whether it's Tesla or any other company, we're also excited to announce our next-gen drive unit, which is a big reduction in silicon carbide, it's half the factory space. Notably, there are zero-rare Earth elements required. So we're also changing to a 48-volt low voltage aquate in the car.
So this is a big deal actually. So the cars have been operating with 12-volt batteries for basically about a century. So for the first time in, I think, over 100 years, we're actually going to change for 12-volt voltage of, you know, outside of the drivetrain to a 48-volt aquatexure. And to first approximation, that means we need only about a quarter as much copper in the car as would be needed for a 12-volt battery.
So that's a big deal because people often worry about, you know, is there enough copper? Yes, there is. So. And FSD beta is growing hyper-exponentially. So that chart is going to look like a wall basically. And I just a question for those in the room. How many people have tried out FSD beta? Great. So what do you think of the latest build?
So it's really getting to a point where, at least for me, when I drive around, it's a several days between interventions. And I think we're getting to the point where there's really just one last piece of the system that needs to be a neural net, which is the planning and control function. And so we expect to have that last piece become a neural net. So it'll be end to end from video into control out as a neural net. Yeah.
So the thing to appreciate is it's not that full self-driving will be as good as a person. It will be much, much better, like a lot. Over time, 10 times safer than a person. It's not even going to be a contest, frankly. So this is a really big deal. And I think some people realize that I think you guys probably realize it. But being able to do a software update and have several million cars suddenly go from manual driving to autonomous, I think will be the single biggest asset value increase in history.
The normal usage of a passenger car is roughly 10 to 12 hours per week, called it maybe an hour and a half per day. And when you drive around, you see lots of cars just parked in parking lots because out of the 168 hours in a week, they're using less than 10%, maybe 7% of the hours of the week, they car is the news. But once it is autonomous, it can be used probably at 50 hours a week, maybe more. So it is effectively a five-fold increase in the value of a car overnight. I'm actually surprised that so few people realize this, or maybe they just don't believe it's real, but it is.
So this is really an insanely big deal. We're also the largest EV maker in the world. So. Yeah. And I think that will continue. And while at the same time being the highest margin of any car maker in the world. Now making electric vehicles profitably is hard as illustrated by the difficulty of our competitors. A number of our competitors are making EVs at a significant loss.
So. But we are not. We are actually making EVs profitably and almost no one else is. This is hard. So. And I'd say for this is it's a massive credit to the Tesla team for I can't tell you how hard manufacturing is. Like you probably heard me say that prototypes are easy. Manufacturing is hard. And then manufacturing at scale with positive cash flow is excruciating. It's mega pain. But the Tesla team has done it. So. And as you can see our free cash flow per year has been increasing steadily. So we're making good progress.
It should be said that. And I've made some of these comments that the interest rates make a very big effect on the affordability of cars. So the vast majority of people buy cars based on the monthly payment. So it's like how much money, how much is the monthly payment. And it's not a question of value for money. It's just do they actually have enough money? Can they afford it? So people so for the vast majority of people is just can they afford to pay the payment?
As the interest rates increase and credit titans, like it's safe to say that these various banks that have died are probably somewhat distracted from handing out auto loads. So like if on the way to the cemetery, increasing their auto loan portfolio is not the first thing on their mind. So this is going to be a challenging 12 months. I want to be sort of realistic about it.
The Tesla is not immune to the global economic environment. I expect things to be just at a macro economic level difficult for at least the next 12 months. Like Tesla will get through it and we'll do well and I think we'll see a lot of companies actually go bankrupt. So I want to make sure that this is not just the good news parade. It's important to understand that no company is immune to the macro economic environment. But that said, it won't be darkness forever.
I expect probably a year of difficulty globally for everyone. And then my best guess is that the global economy turns around in roughly 12 months. And then Tesla will be in an extremely good position. So anyone who is the long-term investor I think will do extremely well.
And here I want to give a big shout out to the Tesla in total software team. It's actually a really big deal. That Tesla has such a powerful internal software team. That's our team responsible for handing the entire customer experience from buying the car, delivering the car, operating the factories, service and support. We internally wrote all of the insurance and financial software.
It's with the supply, just like stuff, the data centers and infrastructure and the analytics inside. This is all internally written Tesla software. I think there's almost no companies in the world can do this because they do not have a very talented internal software team. So they're generally reliant on third party enterprise resource planning software. But Tesla is not. This is a hidden strength of the company that often doesn't get a lot of attention but is incredibly powerful. So once again, I'd like to thank them for their work.
And as predicted, we are highly confident that Model Y will be the number one best selling car on Earth this year. And in fact, in Europe, the best selling car of any kind, yeah, whatsoever. It's already was that in Q1. It's not like it will be. It was that in Q1. And China, the best selling SUV and the United States, the best selling non-pick up vehicle in the United States in Q1.
So, it's going well. I don't know if this is like the optimal picture, but the Tesla cars are actually the safest cars in the world. We put immense effort into vehicle safety and we keep updating the safety. So we keep improving the automatic emergency braking system just with the software update. And we keep improving the airbag deployment with software updates. So we close the feedback loop on like when we see an accident, we analyze the accident, we say what can we do from a software standpoint? Because it's actually quite a lot you can do.
To first of all, avoid the accident because the best accident is no accident. And then if the accident occurs, how do we deploy the airbags and the sort of the seatbelt pretensioners to minimize the probability of injury? So even for cars that people have owned for many years, we are behind the scenes continuously improving the safety of your car. And there are even some things that I think a lot of people aren't aware of that we actually have automatic cabin overheat protection. So never in the history of the company has a child or a pet died in a Tesla. So it's one of those little known features.
But because we have a large battery and we're monitoring things all the time, we can make sure that the cabin temperature never gets to lethal levels. And I think that's a big deal. Oh yeah. So and then while lots of cars will say they've got like five stars or whatever, there's new ones to that. When we did the European NCAP sort of active safety tests, we got the highest scores that they've ever seen. So we got a 98% score on the active safety system, which obviously isn't good enough. And we have got a game plan for getting rid of the last 2%.
And then it's worth noting things like the total cost of ownership of a Model 3 is now comparable to that of Toyota Corolla. Superchargers we were making good progress. So our Supercharger uptime is now 99.95%. And we have Superchargers practically everywhere at this point.
Going to Megapack, because this is a stationary storage is an important part of solving the sustainable energy problem. And the Tesla Megapack is now more competitive than a natural gas-peaker plant. So we have very strong demand for the Tesla Megapack. And we're going to make a lot of them. Yeah. While that guy predicted that the Tesla stationary battery pack business would actually grow faster than the automotive side of things, and that's exactly what has happened.
You can see it's an exponential curve growing in a rate that is even faster than our vehicle sales. Yeah, sorry. We're expanding Gigafactory Nevada for the Tesla semi-production line and for the 4680 in-house sell production. And yeah, some Megapack tree stuff. So this is sort of aiming for 40 gigawatt hours a year, both in California and in China, but I think long term, this will be much, much greater than this.
I wouldn't be surprised if long term, the stationary battery pack activity went well in excess of 500 gigawatt hours per year. So the demand is like quasi infinite here. As we look ahead to tackle what we see is the choke points in the supply chain. One of them is lithium refining. And I mean, there have been a few times on Tesla owning schools where I've said, can someone please just do lithium refining because there's a shortage of it? And we really see very little activity outside of China for lithium refining.
So it's not that we wish to take on extra problems, but since nobody else was doing it, we felt we had to do this. Which will be more lithium refining than I think probably everything outside of China. And we've signed a deal for an ex-gigawatt tree in Mexico, Giga Mexico. I think that's going to be fantastic factory. So we're laying the groundwork for ultimately getting to 20 million vehicles a year.
So Savitruck is a hard car to make. Because it's a such a radically new design, you can't just use conventional methods of manufacturing. We had to invent a whole new set of manufacturing techniques in order to build an exoskeleton-based car instead of an endoskeleton-based car. So it's extremely non-trivial to build the Savitruck. But we're making good progress on that.
So yes. That's the thing I, in the factory, I tour the Savitruck line to see how we're doing there. Sorry for the lab, but we're finally going to start delivering production Savitrucks later this year. And I think the product, if anything, is better than expectations. Savitruck is the car I will be driving on a day-to-day basis.
So people always want to know what our next product is. But this is not the time to. We obviously need to have a proper dedicated product launch. I just want to emphasize that we are actually building a new product. We are actually designing a new product. We're not sitting on our hands here. So there are two new products that I think you will be very excited about.
And both the design of the products and the manufacturing techniques are head and shoulders above anything else that is present in industry. So yeah, anyways. If I were to guess, I would say of these two new products, just these two new products alone, I would say this will probably make. This is just Elon's guess. So, you know, don't sue me. But Elon's guess is that that will probably make inaccessible filing units a year of these two models combined.
Okay. Thank you. That's cute. These are all real by the way i think the thing um past most most notable is if you look at the difference between the last time we showed optimist and And this is a video that was taken basically yesterday. And the Optimus team was up all night making this video. The Optimus team has done an incredible job.
So just yeah. Applause And it's the motors, the controllers, the electronics, and everything you see in the Optimus robot is a Tesla designed system. So this is, we actually tried to find actuators and whatnot that were off the shelf. We found that there weren't any in order to make an effective humanoid robot. You actually have to design the motors and gearboxes and the electronics from scratch because it's a very different application from anything else that exists.
So we took our world class motor and power electronics team and said okay, we need to design several actuators that don't exist in the world. And they did. So Optimus is working quite well. And then for full self driving, as full self driving gets closer and closer to generalized real world AI, that same software is transferable to a humanoid robot. Just like humans can obviously walk around with their own legs, but we can drive a car, fly a plane, steer a boat, ride a horse. If you have a generalized understanding, if you have generalized real world AI, which is what we are developing for full self driving, it can be transferred to basically anything.
So Optimus will use the same FSE computer as the car. And the Optimus stuff is, I think, not somewhat extremely underrated because people just cannot comprehend the consequences. Now obviously we need to make sure that we don't have a Terminator scenario. That's very important. It's all fun and games until Terminator shows up. But if you say like, if you have had a generalized humanoid robot, what would be the effective ratio of humanoid robots to humans?
Because I think basically everyone would want one. And maybe people would want more than one, which means the actual demand for something like Optimus, if it really works, which will, is, I don't know, I mean 10 billion units. It's some crazy number. It might be 20 billion units. If the ratio is say 2 to 1 on people, humanoid robots with people, it might actually be, it's some very big number, is what I'm saying. And a number vastly in excess of the number of cars.
So my prediction is that Tesla's long term value will be a majority of the long term value will be Optimus. And that prediction I'm very confident of. So, there we go. Let's see. So I think with that we can do questions, perhaps. Oh, okay.
Yeah, we also want to make sure, retail investors please vote. Normally retail investors for most companies don't vote. But we really care about your vote of small investors, not just large investors. So please do register to vote. Your vote is very important.
And yeah, I think that's, yeah. That's it. So, with that we can go to ad hoc questions from the audience. Okay, definitely the person in the Optimus output with the red cowboy hat. Great outfit. Sure. And we'll try to get through as many questions as possible. And you know, hit me with your toughest questions.
Fine. Okay, it is. Hey dad, it's your son Optimus. I wanted to see more likely that you guys will have an RV first or a cyberkipper. Well, we don't have any plans to build an RV quite yet. Although, I can certainly see how cyber truck could be converted into an RV. And we are adding a lot of sort of attached points to cyber truck.
So others can build things. You know, somebody can have a startup or other companies can build things that are attachments that enhance cyber truck and turn it into a camper essentially. Because I think it'd be really cool to have at least like third party things available for cyber truck. Thank you.
I mean, you can also probably just, you're back close. You can just say it or something. Actually, we'd like you guys to queue up behind us. Okay. All right. Yes. So just to check you up. And try to make the question short so we can get through a lot of questions. So maybe.
Oh, you mean just like a Tesla team doing a podcast about Optimus? Oh, yeah, yeah, sure. Yeah, you know, I wonder if maybe we could add, have sort of like an addendum after the earnings call, which is like a, you know, 30 minutes spot podcast on Optimus or something like for those who are interested.
Okay, I think we'll do that. So. Hey, Lon. Thanks for doing this today. It's an awesome event. Thank you. Welcome. Thanks. Come on. Hope you guys have a good time. Yeah, having a great time. I'm pretty confident we have the funnest shareholder's meeting. By a long shot. Undoubtedly. It's amazing. So I'm really excited about a lot of things with Tesla.
It's hard to pick a good question that it's going to cover everything. But with the energy side of the business, I think it's hugely underrated. I mean, we got tons of problems. I mean, California with rolling blackouts. How do you think you can incentivize people, you know, more for solar, battery backup? And we've got the referral program. It's been beefed up as well.
So, you know, what are your thoughts there? How we can get people on board? Yeah, actually one of the challenges in California in a few other places is that in order to have the power wall be like an uninterruptible power supply for the house, we have to actually have a switch that disconnects you from the utility. Otherwise, you just, you know, send energy into the grid and it doesn't do anything.
That's actually been quite difficult with utilities, but I'd like to thank PG&E for recently helping us get approval for installing the backup switch for power wall in California. So that people can have uninterrupted power in California. And we're working on that in every jurisdiction. So I'm confident that that's going to be a great long-term situation. And then as mentioned, Megapack is growing very rapidly.
And yeah, so things are really growing ridiculously fast on the energy storage front. So, yeah, I feel good about that situation.
嗯,能源储存领域的发展速度正在变得惊人地快。所以,我对这种情况感到非常满意。
All right, next question. Elon, a lot of people have just got to be wondered, how are you doing? So, it's wondering, what's up? How are you doing? How are you feeling? We saw you were a party in Cabo recently, so just wondering how? Must've been someone else.
So, how are you doing? Just human to human? How are you doing? Well, I have to say, it's been of a, you know, roller coaster situation. And, you know, like, it's actually pretty rare for me to be at a party. So, that's like the, you know, first party I've been at in a while. And actually, it wasn't even going to go to it. Then my brother told me into it. So, thanks, people.
So, yeah, I have to say, like, sometimes the work pain level is quite expriciating. And then on top of that, I get dumped on in the press. So, it's like, you know, it's not exactly super fun. But, you know, there was a short term distraction, because I have to do like some major open-hot surgery on Twitter to ensure the company's survival. But that, I think, Twitter is now in a stable place. And, obviously, very excited to have Linda Jacarino join.
So, I think Linda is going to do a great job running Twitter. And I'll provide, obviously, guidance on technology development. But as you can see, I think Twitter at this point has released more new features than last six months than it has in the last six years. So, you know, obviously this is not a Twitter meeting, but the larger point is that I feel at this point I don't need to devote incremental time. The amount of time that Twitter will take going forward is relatively small compared to the last six months.
So, yeah. You know, apart from, like, there's some macroeconomic things that we can't do anything about. Overall, I feel very good about the health of the companies. And I'm increasingly optimistic about the future. Thanks for asking. It's kind of your asking. Thank you.
If you guys considered stretching out the financing terms on your auto business, you talked about earlier, consumers don't necessarily look at the sticker price they're paying. All they're concerned about is monthly payment. And one of the fundamental advantages of an EV is that is substantially more durable. And so, would you guys ever consider stretching terms out to ten years, especially in this rate environment, given the shape of the yield curve, extending the terms out that farther you'd actually be capturing lower cost of funds?
Yeah, the important thing to appreciate is that, like, that the vast majority of the financing is from banks. So, it's kind of whatever the banks are prepared to do. I mean, this year, I guess, we'll do on the order of $100 billion of sales. And we don't have $100 billion in cash to finance that. So, the vast majority has got to come from banks. So, it's really the bank's choice of what they're willing to do. And it has been tricky with banks recently because, as I mentioned earlier, if you're a bank and you're not sure whether you're going to be a livernight, it's a pretty big distraction. And increasing your auto loan portfolio is very much a secondary priority.
So, it's just important to appreciate it's not up to Tesla, it's up to the banks. And there's not some easy solution where you can say have a capital financing arm, et cetera, because you have to securitize those loans, and the market for securitizing them is weak. There is no. I wish there was an easy path, but there isn't. So, you know, I think just.
I remember that the economy moves in cycles. And we've had a very long period of upcycle. The next 12 months will be, I think, difficult for everyone. And I think when the books you have the way have their annual meeting, Warren and Charlie actually said, like, hey, this year, the books your companies are going to make less money. And so, you know, they're very well-run organizations. And I think that's just generally true for the economy.
But it's also important to remember that, you know, there are good times and there are dot times. But then the good times follow the dot times. So, my advice would be, don't look at the markets for the next 12 months. If there's a dip, my the dip. And I think it will not be sorry because, you know, there's just generally sort of a. There's an economic cycle to things, but things come back up. So, my guess is, top times for a year. Like I said, just my guess. But then Tesla will emerge stronger than ever. And the long term, if you say, like net present value of future cash flows will be incredible in my opinion.
All right. Hey, Elon, beat Kevin here. Hey, how's it going? Good. Thanks. So, Tesla is the largest position in my ETF, ticker Pp. And that's for pricing power. Right. And I'm curious. I really think that some of the features that you highlighted here, like the over-the-air airbag deployments of improving features, the safety features, are great things that we could be advertising. For, I know you've heard this many times before. I know you have.
No, no, sorry, go ahead. Go ahead. 525 bucks off every car this year is half a Netflix's advertising budget. 1,000 bucks is the entire Netflix advertising budget. And I see their ads everywhere. Why not advertise these things that you told us here? I feel like nobody else knows about this.
I just talked to Gordo, the Tesla bear, and he's still talking about 2016 New York Times pieces. These people are in the past, man. That's like seven years ago at this point. Yeah. That's what I'm saying. Yeah. It's actually. I talked to a lot of people, and they still think that, like, Tesla's are, like, super expensive. And I'm like, no, actually, the starting price for Tesla is below the average auto price in the US. That's like. And that's a good thing. I mean, I think it's good that it's that way, you know? Like, our goal was always to make cars that are affordable to the general public. So.
So I hear you. I mean, I think. And it's indeed ironic that, you know, Twitter is highly dependent on advertising. So, you know, here I am. It's like, you know, never use advertising really before. And now. Have a company that's highly dependent on advertising. So. I guess I should say advertising is awesome, and everyone should do it. But I think. I hear your. Sort of larger point, which is that there are amazing features and functionality about Tesla that people just don't know about. And. Woo! So.
And although there's. Obviously, a lot of people that follow, like, say, the Tesla account and the. You know, my account, whatever, on Twitter. To some degree, it is preaching to the choir. And the choir is already convinced. So, I think what you're saying. Does have some merit. And. You know what? I believe in taking suggestions. So. We'll try a little advertising and see how it goes. Woo! Okay. Okay. Okay. All right. I wasn't expecting that level of enthusiasm. But, okay, it sounds like our shareholders. If I read between the lines. Settle as it is, or saying we should probably do some advertising. Well. All right.
So, my question is regarding you recently as a team to the choir. And that's great. We can play video games. It's just like currently developing the ability for other parties to develop apps for the choir. For example, if we come by, actually, customisable teams for the operator-receiving of the choir. I think you're going to be able to use some revenue there, right? That space teams for the choir or the lower the reins are stuff like that. Do you have any interest in that right now?
Well. I mean, the important. So, I think the notion of having entertainment apps and whatnot becomes increasingly important as the cars achieve self-driving. Because otherwise, you can only really watch play games or watch movies or whatever when the car is stationary. Which is charging or whatever that you can use it. But at the point in which it's full-stop driving, I think it's very much about entertainment and productivity. So, I think that is something that might make sense in the future. But overwhelmingly, the focus right now for Tesla software, apart from improving safety, is achieving full-stop driving and then getting full-stop driving to be much safer than human driving. And then, once we achieve full-stop driving, I think that there could be a lot of opportunity for apps and whatnot. So, you know, even in the car as it is today for a Model S and X, we've made a full steam integration.
So, you can actually just literally log on with the Model S or X with your steam account and play any game that is on steam, which is a lot of games. Which is pretty well. I think a lot of people don't know that. You can play with the keyboard and mouse. You can play with the joystick or controller. You can also play Netflix, YouTube or anything else. And for my little son X, he loves watching rocket videos on the rear screen of the Model S and X. So, there's something that we will do long-term. But one of the things, we already have a lot of stuff there and we'll do more as self-driving becomes a reality.
所以,你实际上可以使用 Model S 或 X 登录你的 Steam 账户,玩任何在 Steam 上的游戏。这是很多游戏。这很好。我认为很多人不知道这一点。你可以用键盘和鼠标来玩。你可以用摇杆或控制器来玩。你也可以播放 Netflix、YouTube 或其他任何内容。而我的小儿子 X,则喜欢在 Model S 和 X 的后屏幕上观看火箭视频。所以,我们会在长期内继续这样做。但其中一件事是,我们已经有很多东西了,随着自动驾驶成为现实,我们会做得更多。
Hey, Elon, I'm John or Dr. Noodle in YouTube and I don't know at all. But anyway, my question is, as you guys move completely or finish the transition and full-self driving from version 1.0 over the software to 2.0, what do you perceive of as the potential stumbling blocks after that? Because it seems like that's the major step change that needed to happen and so you're almost done with that and what happens after that. And also, please let me interview you about full self-driving. I'll spend two hours talking about just that. Thank you.
Well, we can really think about full self-driving as sort of a march of nines of reliability. So, we need to get to the point where the probability of injury is lower than that of the average human driver. And then ultimately, probability of injury is much lower. So, even at the point at which the car is capable of driving itself, there's still a lot of work to do. Because every year there's a million people that die in auto accidents. And I think probably everyone in this audience has friends and family that have died or been seriously injured in auto accidents. And for every, there's like a million people that died, there's 10 million people roughly that are seriously felt permanently injured. And so it matters that if we can get that down by an order of magnitude, there's like 900,000 lives saved per year, maybe 9 million severe injuries prevented per year. And so that really, I think, morally has to be our primary goal. And I guess I'm open to an interview on FSD two hours a long time. Okay, okay. All right, I'll do an interview. It's got to be on Twitter, but true.
Hi, hi, I'm Josh Phillips, long-term retail investor. My question is about battery grade lithium supply in the next 10 years. Lithium experts all agree that mines are just not coming on fast enough to meet battery supply. And actually Drew Bagley, no point in this out recently, some mines take 10 years plus to be permitted. And even GM has actually announced like huge lithium deals that will like secure away supply from the rest of the industry. So what's Tesla's plans to get more supply of lithium at the mine level outside of refining, but also at a deeper level than a traditional offtake. Because as we know, he who controls the spice controls the universe.
Sure. So I actually think that the industry analysis is incorrect. And the constraint is fundamentally that of processing. So our refinery in course, Christy that we're building is primarily oriented towards refining Spodgermain, of which there is a truly vast amount in the world. About, I think about three quarters of our lithium comes from Australia. And frankly, you could increase the rate at which the mines are operating. And the limiting factor is not how fast can you mine, but how fast can you process? So the mines are only going to produce ore at the rate at which refineries can handle the ore or it's pointless. So I think my opinion and I'll say I could be wrong about this, but is that it's really not about the lithium ore. Lithium is extremely common. Lithium is everywhere. In every country's got lithium. It's not like oil. So lithium is one of the most common elements on earth. But taking the lithium ore and refining it to battery grade is extremely difficult because the purity levels required for a battery are extremely high. If you have even a small impurity, then you will degrade the life of the cell dramatically. So you need ultra pure battery grade lithium. And that's why that's why our focus is on refining as opposed to mining. Thank you.
Thanks. It's a great time here. You spoke about safety in your presentation of the vehicles. And I just want to say I'm thankful to you for building such a safe vehicle because I'm here today with my son. We drove in his Tesla 3 over here that he replaced with the one that he got rear-ended significantly in and had destroyed the car. But we're able to be here today. Thank you very much.
So, that's your way to look. Hey, how's it going? My name's Austin Gregory. I'll ask about this because I don't think it gets near enough love. I was wondering if there are any updates on the next gen roadster actually. I know it's sort of like the cherry on top and all that stuff. I have a lot of you played if you said before. But if there's any updates on like the release timeline, all that stuff, the SpaceX package maybe. That'd be amazing. Thanks.
That totally fair and reasonable question. Where is that thing? So, we expect to complete the engineering design of the next gen Tesla roads to this year. Hopefully, it's not a commitment, but hopefully, it's a stock production next year. It's not even the icing on the cake. So, I wouldn't expect it to be like, it's definitely not going to be a huge contributor to revenue. It will be a modest contributor to profitability, but it will be sick. There's some value to me running to companies because the next gen roadster will have the SpaceX option package. That'll make it truly next level.
Hey, Elan. Ever McMillan here. First of all, I want to thank you for making the absolute best safest and most fun cars in the whole world. Cars in Florida. We are seeing many, many more cars in Florida than a year ago. Many fact cars are doubled. So, the question is, we all want Tesla insurance. Is it coming?
Oh, yeah, yeah. Actually, that's a great question. Okay, the exact, exact, exact, exact, exact, it's coming later this year. I have to tell you, one of the thorniest things in the United States is car insurance or insurance in general because it's a state by state and every state's got different rules and regulations. That's why it's not rolled out nationwide. I think really, there should be one national standard for insurance, especially car insurance. I think it would improve the cost effectiveness of car insurance. But our intent is to roll out nationwide and ultimately internationally. But there is a staggering amount of paperwork that is needed to get it done. But as Zack said, we expect to offer Tesla insurance in Florida later this year. Thank you.
Thank you, Elon. Thank you, Elon. Alexandra Mertz. I am Tesla Bu moma. Very happy to be here. So, very grateful to the Tesla team and you, of course, just want you to know we love the emotions every day. Joy and less joy, but we're there.
Shareholders, it's not easy. We're here, not because it's easy, but because it's hard. So my question initially was on in-house financing. You already answered that and I want to congratulate you to the double investment grade rating. But then I asked my Twitter subscribers. I'm sure you're going to appreciate what they wanted to bring forward. And that question made the cut. Here we go. Automotive, including SAS, peak margin, the same for energy. What number and by when do you have the best Elon gas that we get there?
So I'm not sure I fully understand the question. So this is the peak margin for automobile, for automobile, including SAS and energy and by when will we get there? Your guess.
Well, software as a service. You mean, FSD, what's going to be the top automobile margin?
“软件即服务”,你是指 FSD,它将成为最高的汽车利润率是多少?
Oh, yeah, yeah. I mean, what I'm saying earlier is that at the point at which you have a truly autonomous vehicle that can drive around with no one in it, the utility of the vehicle, I think as a rough guess, is probably five times what it is today because people will drive an average of an hour and a half a day, perhaps, so 10 hours a week. But if the car is autonomous, it can probably, I'm just just speculation, but it probably can operate for a third of the hours in the week, which would mean 50 or more hours, thus a fivefold increase, but the car costs the same. Sure, I understand, but what is going to be the margin for Tesla then because you're obviously thinking you're going to sell much more FSD then, right? You may have a system in place of robot access. You may have a cut with fleets. So did you do any projections? What the automotive peak margin for Tesla could be in two years, five years, and the same for energy?
Well, I mean, this is definitely, we're in sort of highly speculative territory here. But obviously, if you've got a car that costs the same and has say, I don't know, a 20 or 25% margin, and suddenly is able to be used five times as much, then you might have 80% margins, and the revenue would increase severalfold. That's why I say it's probably going to be the biggest asset value step change in history of Earth. Energy does not have such an increase in asset utilization. So I would expect energy to be to remain at sort of a 20 or 25% is to 30% margin.
All right. So you said ask the tough questions. You're still good, right?
好的。你说让我问难题,你还好吧?意思是询问对方是否还能继续接受挑战或承担压力。
Yeah.
是的,尽可能地表达意思,让阅读更加容易。
All right. Cool. First of all, though, as a family man, I just want to say there's a couple of things like a loop for tether of a car seat going through the headrest, which would be super helpful. There's a couple other things that would be really nice. The model wise, the only one you can do that in today. Maybe we could fix that. But when we're thinking about 4680 battery cells, should we be thinking about the efficiency and the performance we're getting today, or is there some updated timeline path that we could see closer to battery day presented efficiency performance that we can look to in the future?
Well, I think, first of all, it's really important to express the difficulty of, you know, like for Tesla to go from nothing to making a battery cell that we aspire to be better than any other battery cell on Earth, even when compared to companies where the only thing they do is make a battery cell is obviously not a trivial exercise. That said, we do see a path to, you know, very high energy density and higher energy density and lower cost than anything else out there. But it's a hard path. It's a very hard path. And normally, it would be absurd for companies to attempt such a thing. And no other car company is really attempting to do anything like this in a serious way. So I guess technically be a idea because they started out as a battery company. But yeah, so it's a very difficult thing to do. But I think we are tracking to success in that regard.
Hey, Elon, first of all, thank you for undoubtedly making the world a better place for my son to live in. Thank you. Can I ever say? One cyber truck is fully ramped in Austin. What is the target production? And also there's some rumors that you're thinking about stepping down as CEO. Please say it ain't so.
Yeah, so I think Tesla is going to play an important role in AI and AGI. And I think I need to oversee that to make sure it's good. So because that's the only problem if there was one. Generally, people do not. Very few people, even in the AI community, do not appreciate just how much capability Tesla has in AI. But far the most advanced real world AI is no one even close. And reality has the most degrees of freedom. So I got to make sure that's good. And you were saying cyber truck fully ramped. So as I said, you know, we'll start production later this year. We'll start handing over constantly this year. There will be an S curve of production. So it'll be slow at first and then and then ramping up. And I guess we'll see what the demand is like. So I mean, I think this will be likely to do probably a quarter million a year, I think, maybe more. Again, very much dependent on on what the demand is like. And it's, you know, we don't just need to ramp up production, but we also need to improve the production cost efficiency. Which is going to be also a very, very hard thing. So. But I'd say it's, you know, a quarter million a year is a reasonable guess. And it might be 500,000. I don't know. But what will make as many as people want and can afford. And and. But it's giving you hard to make the cost affordable because it is a new car, new manufacturing method. So. In the grand scheme of things relative to the production rate of all the other cars we make, it will be small. But it's still very cool.
Yeah. Thanks. You know, maybe three more questions. Sure. Thank you. Good day, Mr. Musk. Hello. My name is Dilly Archer. And this question aims to address Tesla's efforts in developing skill workforce, attracting the diverse talent and promoting career opportunities within the company. When I look around, I see a lot of young faces and I think about internships and apprenticeships for students in high school and beyond. My question is, are there any plans to expand existing partnerships and explore new avenues for collaborations with educational institutions and nonprofit organizations to attract the next generation and very career pathways?
Yeah, actually we with with all of our giga factories. We work with the local schools actually from the high school level community college and university because it's incredibly important to foster the talent for the factories. As you saw from the employment numbers, we actually need a lot of people, even though we've got a lot of automation, we still need a lot of people to operate the factories and really matters that they have the right training. So we're big believers in reaching out to educational institutions. And because frankly, it's in our interest to do so. So thank you for asking the question.
All right. Elon Josh Fuller. I had originally thought of asking about the the fun police and pushing back on the boom box and allowing us to screech at people with goats again. But after seeing Optimus, I was inspired to ask does has anybody asked Optimus's opinion of Mars? And does he have a ticket yet?
Well, you know, Optimus is not a deep thinker at this point. So Optimus is still, you know, figuring out how to do basic stuff. Like it couldn't make you know cook some eggs or something quite yet. So we need to get Optimus to the point where it has reasonable agility and can do basic things. And you know, and we're aiming for it to start off doing simple tasks that are sort of boring and repetitive or dangerous. Basically jobs people don't want to do. So that's our goal. And I'm confident we'll achieve that goal. And then we're going to figure out how to make it at scale. Make sure that the robots, the robot is safe. I think it's going to be very important to have a local means of turning it off. Safety is going to be extremely important. I can't emphasize that enough. But right now it is not at an intelligence level where it's pondering questions like Mars. Perhaps it will be one day.
Hi, good afternoon, Elon. My name is Luke Arsenal. I just want to start off by saying big thank you to you and the team of Tesla for all you guys do. It's been great to see and I'm so happy for you guys. My question is with the rise in cybersecurity threats to operational technology and Internet of things. What steps is Tesla taking to protect the company itself and its products from these threats also as a suggestion because I know you like suggestions for the navigation. Do you think we could do something on the UI that adds in when you're about to take the off ramp to show a picture that exit. Kind of like other map systems do. And then also. This is a lot of questions. One of my friends wanted to get a shock of from you if that's possible.
And being robust to hacking is incredibly important. In fact, we conduct a lot of sort of third party hacking contests to try to get the best hackers in the world to break into our cars. And actually no one is yet actually broken into a Tesla in a way that would allow you to really control the car in a significant way, but they have gotten to where they can like conquer the horn and mess with the infotainment system. And I'd like to thank them for the refits. So we take information security extremely seriously for navigation. Yeah, there's definitely things we can improve there. But really down the road navigation visuals are not going to matter very much because the car is going to take you wherever you want to go. Yeah, as for pictures, I have to I have to decline unfortunately because otherwise if I say I hate being actually hate being rude to people. So if I say yes to one person, then it's like selfies for Isilian. It gets kind of crazy.
But thanks for asking me. Maybe we'll take one or two more questions actually. So sure. Okay, what's your answer? Hello, I had a question on the efficiency. I don't know if you've been paying attention to App Terra. And I was curious if you thought that was a space that you can see Tesla getting into as far as not just an efficient manufacturing process, but also the actual car itself and range. I'm not super familiar with with them, but we have a lot of we have a lot of products to get done.
It's not like this is it's never a shortage of ideas. I find ideas to be somewhat trivial, but the execution of the idea is extremely difficult. And I said like prototypes are easy production is hard. Production at cash and cash low positive is excruciating pain. You can like at a level you cannot believe. So it's it's not product ideas. They're irrelevant. That's what I think of them. It's sort of like the idea of going to the moon. That's not who could that's irrelevant. Getting to the moon is the hard part. So okay, so maybe one last question.
Yeah. Elon John Lopez from Orlando here. I've got two things for you real quick. The first one is with rideshare being a growing thing, especially with Tesla owners. Are we going to get a guest mode option available for that? The second thing is as an X-plied owner, I would really love to get track mode. As what's right? X-plied. Well, plan has track mode. The model X-plied does not. Oh, oh, model X. Yeah, we can probably add that, sure. Yeah, no problem. So, a rideshare is a bunch of these things will really not be relevant in a self-driving world. You can summon the car and take you somewhere. And if you want to add someone to that ride you can if you want to. But overwhelmingly, it is about achieving self-driving, full self-driving. I think we're really getting to the final stages of full self-driving where I mean, I drove for several days around Austin just dropping pins in random locations and had zero safety interventions. So, it's really, even in the city of San Francisco, which is very complex, I haven't had a safety intervention in a long time. So I think it's really getting to the point where, you know, admittedly, I have an optimistic about this in the past. But I think this time.
嗨,我是奥兰多的埃隆·约翰·洛佩兹。我有两件事想与您分享。第一,随着拼车服务越来越流行,特别是特斯拉车主之间使用。我们是否会获得“客人模式”的选项?第二个问题是,作为一位特斯拉Model X汽车的所有者,我真的很想得到赛道模式。但无奈,Model X Plus并没有这个选项。哦,我真是太蠢了,我应该说是Model X啊。好,我们可以添加这个选项,没有问题。当汽车自动驾驶后,拼车服务将不再存在,您可以叫车并将您带去任何地方。如果您想要添加其他人员到这个行程中,您也可以。但是,我们主要的目标是实现完全自动驾驶。现在,我们正处于完全自动驾驶的最后阶段。我在奥斯汀开车几天,把车随意停放在不同的地方,都没有发生任何安全问题。即使在复杂的旧金山市,我也很久没有发生安全问题了。所以我认为,目前我们离自动驾驶完全实现还有些距离,但我对它的实现充满信心。
Alright, I want to say it. Alright, fair enough. Okay, I think it'll happen. You know, so. You want to ask questions, sir?
So, first congratulations on your decision to try advertising. We all want Tesla to have Apple in market cap. I don't know how many people wanted it that much. It's good that a lot of people agree.
So, early to share your cut prices on everything, 15, 20 percent. More recently, you've been raising prices on Model Y, Model S, Model X. And can you just talk about the pricing strategy of Model Y going forward and keep it separate from the decision to bring it out to next-gen vehicles that we all agree is going to blow the doors off on volume.
But just on Model Y, it's the best selling product in the world. Can you just talk about the strategy of pricing going forward on that?
但仅在Model Y上,它是全球最畅销的产品。您能谈一下未来定价策略吗?
I mean, it's pretty straightforward. I mean, we see what the demand is and then we adjust pricing to meet the demand. Now, the thing is that what happens with other car makers is that they're actually constantly adjusting pricing on cars. It's just not obvious. In the case of Tesla, you can see immediately when there's a price change that occurs because we don't have any intermediaries. We don't have any dealers. There's no manufacturers, manufacturers, just retail price.
But the reality is actually at car dealers, the prices are changing radically. Last year, there were significant premiums above MSRP at sort of the conventional car dealer. So you'd pay above MSRP last year. And then this year, I think things are below MSRP or close to it. And then the manufacturers will then also offer incentives. So what's actually happening is our very big price shifts by other car makers. They're just not obvious. Whereas with Tesla, it's obvious. And this is necessary because demand fluctuates a lot. So something's got to be done to achieve a supply demand clearing point for volume.
So just people are reacting to something that's obvious as opposed to saying, oh yes, every car company does this all the time. Tesla is no exception. That's the actual reality.
Last question. I'll be really quick. So I will say I have been driving FSD. My wife drives FSD. There's a term called the wife test. My wife will only drive our kids on FSD.
That is great. I mean, the sort of significant other test is a very good test. Because while there, there was like friends or significant others would be like, please don't put it on. It's too scary. But then it gets getting to the point where I mean, it's going to be just smooth the silk. So in fact, you'll be able to visually tell, perhaps even now you can, visually tell if the car is being driven on FSD or manually. Because if it's being driven on FSD, it's smooth and precise.
If you actually closely observe cars going down the highway, the people are constantly moving in their lanes. So the cars are like doing this all the time when they're manually driven. If it's actually on FSD, it's dead center in the lane. And it will actually get to the point where it is not merely, and maybe isn't that point, not merely safer than a person, but actually way smoother than manual driving. Really, I can't say enough about the profundity of self-driving. It is one of the biggest changes in history that will occur.
It's not some feature. It's like a profound, it's really as profound as electrification. And we already have millions of the cars in the road that will literally achieve this with a software update. I mean, that's like head-explosing emoji, you know? And I think probably a lot of people will just remember that, but most of the rest of the world doesn't.
Giving out incredible FSD is and how much, you know, a marriage you're giving to potential future margins of the car, as well as how much impact on society. And given that they didn't even want you to say if it's going to happen this year, just not to jinx it.
Would it be possible to have just some type of public-facing, investor-facing kind of timeline? So that way, you know, you mentioned V12s coming, and that's, you know, AI front end. Could we just see kind of a timeline on this is the version or at? These are the things we're working on, and this is one where, you know, ETA. So we can kind of see that in real time instead of maybe Elon time.
能否出现一种面向公众、面向投资者的时间表呢?这样,你们说 V12 即将来临,而且还有 AI 前端,能否让我们看到一份时间表,列出我们正在开发的版本以及开发进度,其中也包括 ETA。这样我们就可以实时地掌握信息,而不必担心“马斯克时间”了。
So the thing that's been, you know, really difficult with a full-stop driving is that it's very often seems like it's about to happen until you realize that you're actually at a local maximum, and that you need to re-architect elements of the software to get out of the local maximum to then a higher local maximum. So it's been this sort of series of logarithmic curves. And that's why it's been like, it seemed like, oh, if you just extrapolate this on a straight line, it gets itself driving, except that it's not a straight line. It's a logarithmic curve, and it sort of, and you start hitting these like local maximums where you'll sort of asymptote to a certain capability and then have to re-architect things.
So now I think we're finally at high enough local maximum, but we'll be this year where it's to the point where it is, I think, probably safer than a person meeting. The probability of injury on average will be better than a person, even if someone pays no attention to the car. It is worth saying that right now for human supervised Tesla full self driving, it is dramatically safer than manual driving. I think like four times safer, maybe more. So it is already a massive safety improvement to have human supervised FSD right now. I think we will get to the point where we're always going to be in some amount of local maximum, but I think that we'll be in a local maximum that exceeds human level safety this year. But I guess we'll see.
So anyway, I want to thank you all for coming. So just to say, your support is super appreciated. And as I say, a friend in need is a friend indeed. And supporting Tesla when the chips are down, those are the real friends, and you're them. So thank you.