Live Blog 2012 Shareholder's Meeting June 4, 2013

Live Blog 2012 Shareholder's Meeting June 4, 2013

Summary of


1. Product architecture 7 years with refresh at 3 years and redesign at 7.
2. GEN III will have the form-factor of the Model S and will try to have autopilot.
3. Gross Margins on Gen III will be lower than the 25% projected for Models S and X in order to increase market share and improve affordability.
4. minimum 40,000 units/year demand
5. going from 34 Stores and Galleries to 50.
6. Lot of opportunity in middle America
7. Will have 70 service centers which will soon show up, prior to opening, on
8. Model X doors will have pinch strips and proximity sensors.
9. End of 2016 will premier Gen III
10. Elon thinks there should be an incentive program for Tesla owners who "sell" cars to their friends.
11. Quick charging is the final announcement and there will be a LIVE DEMONSTRATION on June 20.
12. 120kw charging speed is not the end of the improvements to Supercharging.
13. Zero rent or tiny rent for Supercharging.
14. Expand sales, service and supercharging to rest of world middle of 2014

lph | June 5, 2013

Did you hear the sleeper in the meeting:
Porsche before it was taken over by Volkswagen had a gross margins of 50% (direct knowledge is available anymore about the margins for Porsche) and Elon Musk said that the company is aiming and thinks can achieve that level some time in the future !!! Okay it is not just yet but if you are long and intend to stay there for a while it is great news indeed.

SamO | June 5, 2013

This blog post quoted in the WSJ. Three cheers all around:

"Couldn’t Make the Tesla Shareholders Meeting? Here’s the Highlight Reel"

jk2014 | June 5, 2013

The porsche thing in the news is BS. 50%? are you kidding me? That's not the real margin, Bloomberg. More like 18%. Trying to set up a missed expectation, I get. Bloomberg obviously doesn't like Tesla and that's okay. Probably keep the short squeezes coming for a long time to come. People will continue to buy regardless of news organizations and see the proof is in the vehicle.

NKYTA | June 5, 2013

Another thing I forgot to mention was that Elon stressed that not only would we get 120kW SC's, but they were tweaking the level at which the charging slows down, and that "filling up" would take about half as long as it does now.

jonesxander | June 5, 2013

@Tdurden, I highly doubt you can walk in and stand perfectly straight up in a superman pose. You probably have quite a bit more room than your standard SUV/Minivan, so you don't have to hunch as much, but it won't be a full upright stand.

For ladies who are 5'6 or shorter, I can see how this might actually be true.

jk2014 | June 5, 2013

I ask, why not see the real moment of the shareholder meeting: Elon's near breakdown talking about the NADA situation. The man believes in American democracy, like all of the immigrants that came before him (the heritage of every American). Like the founding fathers. The fabric and foundation of which this country exists today. And, when he sees this willfully disregarded and denigrated, he reacts in an emotionally pure way. Just the same way he reacted when the Apollo astronauts came out against Space X.

To me this is amazing. I rarely see anyone with power actually express vulnerability and truthful, unrehearsed, unpackaged love for the purity of ideals. And that he's actually making these ideals real in the dirty, cutthroad, real politic world of business. The reality is that money talks. Those that have the money set the tone for our country in terms of ethic and national identity. Look at the lobby groups, news outlets, etc and the behavior of our two party system. The other amazing part is that Elon's power and wealth will only increase in the next few decades so he will be apart of the American power structure in a significant way. Money talks here. So based on his actions, Elon could really a tremendous positive effect on the current American system. Make people believe again. And that folks is more transformative for our country and economy than anything else.

Now, it doesn't mean he should run for president, become a political figure, or give grand speeches to the masses. He just needs to continue being himself and doing what he's doing. The rest will be a byproduct. I just am recognizing it for what it is and am excited by it. To me, that's the real take away from the shareholder meeting.

jonesxander | June 5, 2013

RE: WSJ article quoting this blog,

Well they should give credit to SamoSam not "the live blog". That sounds like it's an official live blog.

SamoSam isn't Tesla employee is he?

Let's blow up this guy's email!!!

SamoSam this might be the start of a new career for you. lol | June 5, 2013



Well written; well observed.

SamO | June 5, 2013


I saw the same thing, in real time, moved to tears. He was angry and frustrated and sad.

But he also challenged current owners and potential customers to go out and be the best advocates for Tesla.

That's the message I got and that's why I did this live blog. So that people anywhere on the planet can read about this company, this man and this endeavor.


Thanks for the kind words. I'm glad that credit was given by the WSJ to THIS BLOG and pointed people here instead of having some oil industry exec creating a counter-commentary on why Tesla is niche and will never overcome the current incumbents.

bb0tin | June 5, 2013



SamO | June 5, 2013


He did mention increasing, but the 50% increase described the most recent Supercharge step-up speed.

Supercharging will get faster.

jonesxander | June 5, 2013


Well played then sir!

drtmovr | June 5, 2013


I'm assuming he meant you could stand up with the gull wing doors in the fully open position.

mammal | June 5, 2013

The 120kW improvement I think was already part of the announcement last week, but I was interested and encouraged to hear Elon's answer to a question as to the future upgradeability of the superchargers given their capital cost that in fact yes, it was planned that they could eventually produce en even faster charge (I think he said it would have something to do with the SC battery augmenting the current from the grid - not sure how that works). Btw, I think it's clear this is not the June 20 announcement, but that they are thinking way ahead not just with the car but the network is great news.

wcalvin | June 5, 2013

I wonder if the June 20 involves transferring charge from one Tesla battery to another? The size of the pipe really matters when the source is distant, given resistance losses, but a thick wire only a few meters long is more capable. The question is whether the battery can accept really high currents from a fully charged battery at the fill=up site, slowly recharged between uses.

NKYTA | June 5, 2013

@mammal and SamoSam
Yep, agreed that the 120kW improvement was old news. I was excited that:
a) they are going to tweak the s/w, f/w such that fast charging can occur without the rate slowing down until later in the charge
b) that the battery and associated conditioning h/w and s/w allow this for existing cars (i.e. mine!)

prestontesla | June 18, 2013

@mammal metal-air batteries require adding water periodically (thus the "faster than filling a gas tank"), but no one's found a reservoir for adding water

-use the water condensed from the air conditioning (don't know if quantity is enough and doesn't help when there's none produced for whatever reason - weather, etc.)

prestontesla | June 18, 2013

@Brian H The audience suggestion was a year's free service per sale. Worth about $475? I think the cynicism it would generate in prospects would make it counter-productive. "You're just saying that for the ...."

-why not provide an incentive for the new buyer instead?

mdemetri | June 20, 2013


Are you at the event tonight and plan on bloging?

jonesxander | June 20, 2013

Yeah SamoSam where are you when we need youuuuuuuuuuuuuu!!!

lol jk. Still great job at the shareholders.

SamO | June 20, 2013

Thanks @mdemetri and @jonesxander:

I WILL be at the event tonight but won't be able to blog and clap at the same time. hyper loop announcement in mid July perhaps. And definitely next shareholder's meeting.

I'll post something tonight if possible.

mdemetri | June 20, 2013


I more than understand, if I was'nt in DC on buisness I would be too busy clapping too!!!

But could you send a quick single post on whether it is main pack or range pack swapping; the suspense is killing me and I cannot stand not knowing until the video is posted at 12:30am EST.

Again, beautiful job on this blog.