At the 2024 June 13th annual shareholder meeting, shareholders reapprove Elon Musk’s 2018 compensation plan. The reincorporation to Texas is also approved. Shareholders wanted to get past this compensation issue and put the focus on to business of growing Tesla and increase shareholder value.
The meeting is available at: https://x.com/Tesla/status/1801365676524773721
Some near term accomplishments that can drive more revenue:
Cybertruck continues to ramp. Tesla targets 2,500/week by hear end. Achieving that would produce 130,000/year. If average selling price of Cybertruck is $60,000 – $80,000, the revenue will be $7.8B to $10.4B. See Cybertruck produced, parked in lot and loaded to transport truck : https://x.com/Tesla/status/1801367670186520759
Tesla Semi truck will reach production in 2025 and ramp in 2026. It will be produced in Reno Nevada. https://x.com/Tesla/status/1801369046094385598
Elon Musk highlighted two multi trillion dollar opportunities available to Tesla.
Tesla is more than a car company. It’s a leader in real world AI: https://twitter.com/Tesla/status/1801370798202229105/photo/2
1. Robotaxi business. The logic is that a car serving robotaxi has more hours doing useful work and therefore creating more value than a typical non autonomous car that is parked the majority of the time. He encouraged shareholders to read Cathy Wood’s paper on robotaxi opportunity and to try out Full Self Driving on a Tesla vehicle to see where Tesla is technically. FSD v12 is neural network based and it will keep improving as by learning from videos reported by Tesla fleet of million of cars as they encounter interventions and difficult driving situations when FSD fails. Scale is required to hunt down the corner cases and get the many 9s of 99.99999999999% percent reliability and exceed the safety of a human driver.
Ark Invest 2024 published Tesla 5 year price target of $2,600. https://www.ark-invest.com/articles/valuation-models/arks-tesla-price-target-2029 They have open sourced their valuation model on Github: https://github.com/ARKInvest/ARK-Invest-Tesla-Valuation-Model. They expect Tesla to launch robotaxi within 2 years and robots to be in production in 10 years. Their price target does not include Optimus.
Tesla has said they would unveil its robotaxi service August 2024. (This date has delayed to October 2024.)
2.Humanoid robots. Leverage the real world AI at Tesla and manuafacturing expertise, Elon Musk believes Tesla has the advantage to make an affordable robot. Tesla currently has two Optimus robots working on the assembly line in the Tesla factory. The opportunity for humanoid robot is several trillion dollars of valuation.
Making both of these happen is possible but requires fast and flawless execution. Elon Musk noted that there are other companies and start ups working on these projects. The company who gets there first has an advantage. Elon Musk says the value he brings to Tesla is he is an accelerant and makes things happen quicker. The company who finishes first gets to collect feedback and creates the second iteration and improves on the product faster and gets to scale. Scale makes the product more affordable and create more demand.
https://ir.tesla.com/press-release/tesla-releases-results-2024-annual-meeting-stockholders