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2017 TSLA Annual Shareholders' Meeting - LIVE BLOG *Updated*

2017 TSLA Annual Shareholders' Meeting - LIVE BLOG *Updated*

As always, I shall endeavor to do my best and transcribe this meeting and the questions (no matter how idiotic). Feel free to help where I have mis-heard or misunderstood.

https://www.tesla.com/shareholdermeeting

P.S. Moved to the General Forum now.

Here's the full transcript. I'll review and update anything I (or the press) missed.

https://seekingalpha.com/article/4079369-tesla-motors-tsla-ceo-elon-musk...

*"It seems like probably over time, we would want at least 1 store for every 0.5 million people. So that’s 660 stores right there. In China, there will be thousands of stores. Throughout the world, there will be several thousands of stores."

* "And this year, we will double the number of Tesla superchargers in the world. So double year-over-year. And I think next year, probably be at least 50% increase, may be double again next year. This gives you just a sense for how many Superchargers there are in the world. It’s worth noting. This is actually the only high-speed charging network in the world. THERE ISN'T EVEN ANOTHER ONE. I asked our head of our Supercharger program, okay, well, what’s the second best high-speed charger that work in the world? You said, well, there’s this one place in the Netherlands but I think it’s only like 60 or 70 kilowatts. But there is only one of it. Okay, well, like, and off – and it usually doesn’t work." [Emphasis added]

* "Keep growing it as fast as we can to make sure people can go wherever they want, whenever they want, with convenience, keep upgrading the capability of the Supercharger systems that can charge things faster. We are going to start adding amenities to the Supercharger station so the really big stations, we will start adding amenities. And just make it so that you, when you do a long-distance trip with Tesla, you love the experience. That’s the overarching goal."

* "So Hardware 2 cars have all the hardware necessary for full autonomy. So 8 cameras, 12 of the most advanced ultrasonic sonar sensors, a radar, a very good GPS, an IMU and everything that is ready to go full autonomy. Our goal remains being able to drive autonomously from a parking lot in California to a parking lot in New York without touching a control at any point along the way."

* "We believe it will be within a few years, have a capacity equal to all other lithium-ion battery factories in the world combined in one building. So we have got everything in the U.S., China, Europe, and everywhere else. This one factory will output more than all of them combined. There is just no one else who is attempting anything as far as we know, even attempting anything on this scale and so I think that puts us in a very strong competitive position to sustain the growth of the company for several years to come and then over time there will be several Gigafactories, I think eventually, 10, 10 or 12, maybe 20."

* "A lot of people don’t think you can do a heavy-duty long-range truck that’s electric. But we are confident that this can be done. So we will be showing off a working prototype at not too long from now, in September. So it’s going to really just be questions of scaling of volume to make as many as we can. I am guessing that we will probably reach scale production on the semi in about 2 years, maybe 18 months, but probably about 2 years. I just like really recommend showing up for the semi-truck unveiling. Maybe there is a little more than for staying here, maybe, could be, who knows."

* "I am confident that we could drop the CapEx by a factor of two between Model 3 and Model Y, which I think is a really big deal and accelerates its readiness despite the new technologies. So we are aiming for that to hit the roads in 2019 approximately. And probably the demand for Model Y will exceed the demand for Model 3."

* "In terms of how many factories are in the works, we are really giving serious consideration to three factory locations right now. But we are going to try to hold our powder, trying to keep the powder dry until we are confident of the locations and the timing. But like I said, ultimately probably there is at least 10 of these worldwide and maybe as much as 20."

* "But the Boring company is maybe 2% of my time, Neuralink is 3% to 5% of my time, OpenAI is going to be a couple of percent and then 90% plus is divided between SpaceX and Tesla."

* "So most millennials living in apartments rather than homes, what can we do to make it easier to own and charge a Tesla without a garage, so we are establishing supercharging locations a lot more in city, supercharging locations and there will be a little lower power. But in between a high-power supercharger which is optimized for long distance trips, but more powered than would typically be found in a home garage, so wherever the car is being parked, whether it’s the apartment or work or somewhere in between, we are going to make sure that there is a place to charge your car, even if you live in an apartment. So it’s important to have a system that load levels the power. So that they don’t have to build a new substation just to supply the apartment building. And so that’s one of the things that’s prices are being implemented, but no question, WE NEED TO SOLVE THIS PROBLEM FOR APARTMENTS, NOT JUST HOMES." [Emphasis added]

* "It’s not inconceivable I would do an electric plane. But I do think that we are not quite there in terms of the energy density of batteries for an electric plane. I think the kind of minimum that you would want is about 400 watt hours per kilogram and even that would require some pretty substantial innovation in the airframe and the way that you are building the plane in order to have these arranged with at 400 watt hours per kilogram. At 500 watt hours per kilogram it starts to be quite compelling. But I don’t know I think we are maybe 4 years or 5 years away from having 500 watt hours per kilogram, something like that."

SamO | June 6, 2017

5 minute late start isn't usual.

Bighorn | June 6, 2017

Thank you for your service, SamO.

Bighorn | June 6, 2017

At least they came on and said to expect a delay.

SamO | June 6, 2017

I missed it. Lol.

SamO | June 6, 2017

I'm Todd Marin, Tesla's general counsel.

carlk | June 6, 2017

SamO to the rescue. Thanks,

SamO | June 6, 2017

Two parts of today's meeting.

1. Annoucne voting.

2. Elon's presentation and answers to Twitter questions.

SamO | June 6, 2017

Time is now. 2:40PM. Polls are open.

SamO | June 6, 2017

Almost all the votes have been counted. But everyone can still vote.

SamO | June 6, 2017

Items.

1, Election of board of directors for 3 years.

2. Nonbonding advisory vote on executive compensation

3. Frequency of 3

4. Price Waterhouse appointment as

Tesla recommends for, for 3 years and ratification of PWC.

Tesla recommends voting against the following proposal by Aisha Mistagne on behalf of CT Pension Plan.

Aisha eliminates the board and that all directors stand for election annually.

Bighorn | June 6, 2017

Internet voting closed at 11:59p yesterday--is there another way to vote remotely?

SamO | June 6, 2017

Classified boards prevent accountability. Academic studies have said that classified boards underperform their peers.

SamO | June 6, 2017

checking Fidelity

SamO | June 6, 2017

Tesla has prepared a statement in the Proxy in opposition.

SamO | June 6, 2017

Nope. Status meeting closed.

SamO | June 6, 2017

Shareholders have approved recommendations of Tesla board in all 5 items. That concludes the official portion of the shareholder meeting. (Loud applause).

SamO | June 6, 2017

Elon Musk (EM): (sustained applause as Elon). It always feels like a party. That's not like normal shareholder meetings.

High level overview and it has been a great year. With better to come.

20 questions we have on the list that were submitted by Twitter.

SamO | June 6, 2017

EM: Interesting correlations drawn. We'll get to the 20 that are most significant for the year ahead of us. (slide of car/powerwall/solarroof)

Solar creating the energy. Powerwall and pack storing. EV using the electricity. It's a fully contained energy solution that can scale for the whole world. Imagine as far in the future. . . well beyond human civilization . . . this works. There are no unanswered questions. Even the gigafactories that make these products are powered by sustainable energy.

Critics would say: Well they're just coal powered. Long tailpipe.

And we said: Yea but we'll have sustainable generation too.

SamO | June 6, 2017

EM: Solarroof aesthetics. People love their homes then you must have solar integrated into the house itself. This is incredibly revolutionary. it looks better than any other roof.

Go down the road and look at roofs. Not good.

SamO | June 6, 2017

Affordable. This is going to vary by region. Property taxes, financing, cost of power from the utility. We are confident that this is going to make you money or breakeven in most of the country.

SamO | June 6, 2017

Flat roof situations or residence with flat roof, then there is no need to go with solar glass tiles. Aesthetics are no longer a factor.

Traditional solar is still going to be important. And if the owner has a new roof.

SamO | June 6, 2017

Starting with black slate and textured slate. Hopefully by early next year, french slate and spanish tile.

SamO | June 6, 2017

Want people to say "wow . . . look at that roof."

if you can imagine the future, it is something you want.

that has to be paired with stationary storage for a number of reasons.

Solar peaks in the middle of the day. And gone at night.

SamO | June 6, 2017

Needs to load level and important for grid stability as solar scales to load level the grid and enable the transition to sustainble energy.

SamO | June 6, 2017

Only notice when te power is out, because substation is down or parts of the world where power is intermittent.

Even here in CA we know we are in line for the big one.

Ice storms in the Northeast.

All kinds of things that cause electricity interruption.

How do you call 911 when your phone is dead?

SamO | June 6, 2017

Nice thing with Powerwall2. Like having an uninterrupted power supply for your house. That advantage is sometimes overlooked.

Utility powerpack for commercial and industrial. The biggest battery installation in the world is in SO CAL for a nat gas peaker.

We have a huge system in Kuaia 20% of peak generation. And American samoa powers the entire grid. That is the potential. A continent is a big island at the limit. If you take an island and run on solar and batteries, you can do that with a continent.

The potential is exciting.

SamO | June 6, 2017

Phone app now integrates powerwall and solar. How much energy producing. How much is being store. How much is being consumed.

SamO | June 6, 2017

And a few things in the future that people aren't expecting . . .

SamO | June 6, 2017

Gives you an idea of where you are using power. And if you are drawing energy from the grid. This functionality is getting better and better.

SamO | June 6, 2017

Customer Experience:

more retail stores - barely touched what is possible. In the US 330M people. How many stores perperson . At least 1 store for every 500,000 people? Keep expanding anyone who could want to buy our products.

Service wait times are down dramatically. Adding mroe service centers. Will double the number of Superchargers this year. Next year a 50% increase. Maybe a double again the next year.

SamO | June 6, 2017

End of 2017 - 10,000+ Supechargers

Only high speed network in the world.

"what is the second best network in the world"

One place in the Netherlands. Only 60-70. And only one of it. And it usually doesn't work. Ok. Alright. (laughter)

We''ll keep growing as fast as we can so people can go wherever they want whenever they want. Charge things faster. Adding amenities to larger Superchargers. So you love the experience of long distance travel.

SamO | June 6, 2017

Almost exceeding hardware one cars with AP2.

SamO | June 6, 2017

With next release of software as early as next week, will exceed AP1 cars. And then accelerate rapidly form there.

Parking lot in LA to NY by the nd of this year without human interventiln.

SamO | June 6, 2017

Gigafactory 1 is going well. Even bigger than footprint. Capacity of the rest of the world in that one factory, when fully operational.

SamO | June 6, 2017

High economies of scale and high production rates, lowest cost/kWh in the world AND the most advanced batteries is a great position to be in and fundemental part of TSLA strategy.

Nobody else is even attempting this scale and puts us in a competitive position.

Over time there will be several and sometime 10-12 or 20 eventually.

NKYTA | June 6, 2017

Thanks SamO!!

SamO | June 6, 2017

Giant machine, building Gigafactories around the world.

SamO | June 6, 2017

Safety - 32% below industry rate this year. On track to be less than 1/2 the industry and far better than any US factory.

SamO | June 6, 2017

Future products

semi - End of September . Many don't think this is possible, but this can be done. We'll be showing a working prototype. We've shown it to buyers and they just want to know how many and how soon.

We are involving those buyers in the design process. Helping ensure it is specified to their needs. They told us what their needs are. Just a question of scaling.

SamO | June 6, 2017

Model Y - I'm excited. Made a mistake to base the X on the S platform. You'll try to shoehorn something that doesn't make sense.

Major manufacturing improvements that can be done in a way that a car has never been built before. Capex can be dropped by a facotr of 2 between model 3 and model y.

SamO | June 6, 2017

2019 for Model Y. Demand will exceed Model 3.

SamO | June 6, 2017

2019 for Model Y. Demand will exceed Model 3.

SamO | June 6, 2017

I really recommend showing up for the semi unveiling. Maybe more than we've been saying. Who knows.

SamO | June 6, 2017

Model 3 configurator goes live the end of next month. initial configuration for model 3 are simple.

Big mistake with X, too much complexity at the beginning. Going back to the S. It only had one configuration at start of production. Because that is all we could do.

Model X - Hubris extraordinaire. Should have been rolled into V2 and V3. An amazing car. And as we refine the software, it will get better and better.

Color and wheels. That's basically it. Then we'll show other options with timeline associated. We were going to debut with AWD.

One is optimized for highway travel. one is optimized for highway.

SamO | June 6, 2017

Dual motor config end of this year, early next. Color and wheels.

SamO | June 6, 2017

3 factory locations now. But we are keeping the powder dry until we are confident of locations and timing.

But eventually 10-20

SamO | June 6, 2017

Long wait if you don't have a deposit. I'm guessing over a year, end of next year before delivery.

On the other hand, there are more and more deposits every week. The line isn't getting shorter.

Doing our best to do the ramp right. Quality is good. Safety is good.

Hard to make cars. 10K unique items.

SamO | June 6, 2017

Trying to simplify the supply chain and inheriting force majeur. If parts aren't made you can't buffer.

Battery upgrades?

Yes. I wouldn't recommend until existing battery has a fair amount of use. Can't go from lightest to heaviest. We will offer that and make that easier with each passing year.

SamO | June 6, 2017

Going to give more prominence to used cars. Pre-owned is bogus. Now just "used". Lot more attention. You can buy a Model S for the cost of a Model 3, $35-40K.

Model S is still our premium car.

SamO | June 6, 2017

Worker safety - ddrving really hard every week with safety team. I think we are well on our way to an injury rate 1/2 that of the industry and better than any other.

Key change was 3 shifts instead of 2. Injuries happen on longer 10-11 hour days.

Redesigning a lot of the presses , fixtures and tooling. Lot of detail to avoid repetitive stress injuries.

Huge progress to being the safest automotive co in the world.

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