Enforced 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 Cobalt Mining and the Democratic Republic of the Congo, as well as on forced labor and China's Xinjiang region. 70 percent of the world's Cobalt needed for Ev batteries are sourced in the DRC.

Over 40 000 children work in artisanal and small-scale Mining often without protective equipment and in dangerous spaces that frequently collapse. Many children are seriously injured or killed in the mining process and Tesla's latest sustainability report. it claims to have it audited 80 percent of the minors and refiners in their Cobalt 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 initiatives.

It is also unclear how the company's due diligence ensures Cobalt Source from child labor is not intermingled in the industrial Cobalt supply chain. Subsequently, an estimated 1.8 million people have been subject to States imposed genocide detention and internment camps and forced labor in the Xinjiang Uyghur region. A recent study concluded that automakers cannot conduct meaningful audits in this region. The recent Uyghur forced 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 enforced labor from a supply chain. One of Tesla's competitive advantages is its sustainable leadership. Tesla Is 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 Miss weeks We will now accept votes for against or to abstain 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 so people are submitting their votes right now. 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.

Travis Travel After the final tabulation is completed, we will announce specific Botali's filing uh 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. 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. Actual events could result.

It could differ materially due to a number of reasons uncertainties, including those disclosed in our most recent form 10K and thank you filings with the Secs. Such forward-looking statements represent our views as of today should not be relied on thereafter. and we disclaim from any obligation to update them after today. And with that, please welcome.

Elon Musk Here we go. Audio's out. All right guys. It's not my audio.

It's there. We go. No breaking. Windows This time.

Elon All right guys, if you guys are just tuning on in, this is a Shareholder meeting for Tesla So please keep an eye on the actual stock itself. say I Love you guys! So uh, well. we've got uh, a lot of uh, great news to talk about today. The the Tesla team has done an incredible job of executing over the past year and we have many exciting years ahead of us.

So uh, yeah, thank you. So with the Tesla Master Plan Part Three, which admittedly was, it was quite technical, we wanted to go into a lot of technical depth. Um, so uh, you know It was clear that they were what we were saying was not just um, we're not merely assertions, but that they were backed up with physics and with real data that it's realistic. Um, and and what's the Master Plan? Part three? We want to.

Basically, the goal is to give people hope, realistic, hope, Um, and maybe hopes even the wrong word. but simply to say that that there is a path to a fully sustainable, uh, global economy that we are on that path, that we are accelerating that path. And this and that, so long as we don't get complacent about it, it will happen. So I'll I'll just I'll Kind of rush through a recap of the Mass Plan Part three.

But the you know some of the Salient points are that it will actually take less energy to go to to go sustainable, not more energy. Uh, it's it's actually more Innovative And some of these things may sound very obvious, but it's it's more energy efficient to go sustainable, not less. And there's less mining that is required for a sustainable any energy economy, not more. Also very important.

Um I I And I Heard a question raised about Uh Cobalt mining. Um, and you know what? We will do a third party audit so so it impacted. We'll put a webcam on the mind and if anybody sees any children, please let us know. Uh I I mean I I Don't want to go from tangent too much on that front, but if it's very important to appreciate that most of our battery packs are iron based, a majority of our battery packs are iron based not Cobalt and the and then our other battery packs are nickel based and not Cobalt.

The nickel batteries use a little bit of Cobalt as a binder, but only a tiny amount. In contrast, your phones will use 100 Cobalt I Recommend complaining to the phone manufacturers everything, but even for the small amount of Cobalt that we do use, we will make sure six weeks is Sunday that we're 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 delude ourselves or dilute anyone else. So yeah, I want to hear about that cyber truck who in the comment section still has a pre-order So against recapping Master Plan Part three, Uh, it's it's.

really the point is to say that it is very very doable. It is happening. We need a a three-fold increase in solar and wind uh lead to the Middle East It's only 29-fold increase in vehicle stationary and thermal battery production. Um, actually in industrial.

The way to think about sustainability is the the faster we can make Uh battery packs, the faster we can move to a sustainable energy economy. That's the fundamental limiting factor. So grab some water here. So yeah, this.

I can't emphasize that point that point enough. The the rate of Uh of of the CMI battery production fundamentally decides the rate at which the world transitions to sustainability because the the batteries are needed for all forms of transport and for stationary storage. Given the intimate nature of of solar and wind power. Um, so the and we do invite people to critique our analysis.

Uh, because you know at any given analysis is going to be to some degree wrong. So we that's why we put it out there looking for for critical feedback to say? Uh, Well, perhaps we've got some things wrong. Have some things need to be adjusted? Uh. But generally the feedback we've gotten is that actually our analysis is quite accurate.

Um, and uh, We've not. We've not seen uh, any rebuttals 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 percent of land area for solar and wind.

So it's a very. It's not like we need to carpet the Earth with solar. Uh, and when it's just literally a fraction of a percent. Um, roughly a 10 trillion dollar manufacturing investment which relative to the global economy, is actually a small a small number.

Um, yeah, roughly roughly 10 percent of the world economy. I Think Obviously I think attempts in the world economy is a small price to pay for a sustainable energy future that even when factoring in the cost or 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 would buy a long shot. Um, and as as we're seeing the the the cost at the emissions required to produce an electric vehicle are dropping rapidly over time. Um, and we're going to get we're going to get to the point where an electric vehicle is lower is cheaper than a gasoline vehicle.

So so in 2022 we avoided releasing about 13 million tons of CO2 reduced Uh manufacturing thg from vehicle by 30 and reduce water usage uh by by 15 Uh despite massive increases in output. So I mean we also made our Factory safer which is really important. So we track the the injuries per person um and I would believe at this point we are best in industry or have the lowest Uh injuries per person. So we're now actually quite a big company.

From a headcount standpoint, this is this is a our direct Uh employment number so this does not count contractors, um, and for every Uh manufacturing job, depending on on how you count it, there are at least five uh, sometimes uh, up to 10 jobs created Uh, because you've got to look at the total supply chain um as well as the Uh, all of the support functions. So you know when you create a factory like this, you actually create jobs for teachers, lawyers, Carpenters electricians and and restaurants and everything that's that's required to support a person at a factory. And this is why countries and states are so interested in having uh uh, manufacturing facilities in their location. So anyways, it's it's a lot of people gainfully employed doing doing very useful things.

Uh, we received a 3.6 million job applications uh last year. so uh, and um and and once again, the uh, the top two most desired companies. Uh for engineers? Um on Earth Uh where SpaceX and Tesla You know at the end of the day the competitiveness of Any Given company is a function of what? Where are the most talented people interested in working That that is the team that's going to win. In fact, if I'd say this is General Generally the case, if you look at any given company and say where are the most 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 you know. And we're also changing to a 40 volt 48 volt uh, low voltage architecture in the in the car.

So uh yeah, this is a big deal actually. Um, so the Uh cars have been operating with 12 volt batteries for basically about a century. So for the first time in I think over 100 years. Uh, we're actually going to change from 12 volt uh voltage of you know, outside of the drivetrain to a 48 volt uh architecture 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 worried about, you know, is there enough copper? Yes, there is. So um, and FSD Beta is growing, uh, hyper exponentially so that that chart is going to look like a wall basically. Um, and um I just question for for those in the room, are you have how many people have tried out FSC Beta.

Okay, all right so so what what do you think of the latest build? Camera looks at me and then gives me warnings. It's really getting to the point where it's uh, at least for me. when I drive around, it's uh, several days between interventions. um and I think we're We're getting to the point where, um, that there's really just one last piece of of the system that needs to be a neural net which is the the planning and Control Function Um, and and so we expect to have that last piece become neural net.

So it'll be end to end from a video into control out as a neural net. Um, and yeah. so the thing the thing to appreciate is it's not that, uh, full self-driving will be as good as a person. It will be much much better.

Like a lot like 10 times more. It's 10 times safer than a person. It's not even going to be a contest frankly. Um, so this is.

This is a really big deal. Um, and I think some people realize that I think you guys probably realize it. but uh, 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. Um, so um, the normal usage of a passenger car is roughly 10 to 12 hours per week.

Call 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 less than 10 percent. Maybe seven percent of the hours of the week a car is in use. But once it is autonomous, it can be used.

Probably I don't know. 50 50 hours a week? Maybe more. So it's it. It is effectively a five-fold increase in the value of a car overnight.

Um. I'm actually surprised that so few people realize this. or maybe they just don't believe it. It's real.

Um, but, but it is. So this is. This is really an insanely big deal. Uh, we're also the the largest uh EV maker in the world.

Um, so yeah. and I think that will continue. Um, and while at the same time being the highest margin uh of any car maker in the world Damn two percent margin. Now making electric vehicles profitably is is hard as illustrated by the difficulty of our competitors.

A number of a number of our competitors are making EVS at a significant loss. So but we're not. We are actually making EVs profitably and almost no one else is. this is hard.

So um and I'd say for this is It's a massive credit to the Tesla team for I I Can't tell you how hard manufacturing is like. You've probably heard me say that prototypes are easy, manufacturing is hard um and then and then manufacturing at scale with positive cash flow is excruciating. It's just Mega pain. Um, but the Tesla team has done it so and as you can see, our free cash flow per year has been increasing steadily so you know we're making good progress.

Um I mean it. It should be said that uh and I've made some of these comments. Um, that the the that interest rates make up a very big have 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 monthly payment? Um, and it's It's not a it's not a question of of value for money, it's just do they actually have enough money. Can they afford it? Um, so people. So for the vast majority of people? is. just can they afford to pay the payment as the interest rates increase? um and credit tightens? Um, like it's safe to say that the you know, these various banks that, um, have died are probably, uh, somewhat distracted.

um from handing out Auto Loads. You know it's like if they're on the way to the cemetery, increasing their auto loan portfolio is not the first thing on their mind. Um, so this is going to be a challenging I'd say a challenging 12 months I Want to be sort of realistic about it? Um, like Tesla is not immune to the global economic environment. Um I Expect things to be just at a macroeconomic level.

difficult for at least the next 12 months. Um, 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 I Want to make sure that this is not just the good news parade we'll support to to understand that no company is immune to the macroeconomic environment.

Oh, with that said, that it won't be Darkness forever. I Expect probably a year of difficulty, uh, globally or for everyone. Um, and then my. My best guess is that the global economy turns around Uh, in roughly 12 months.

Um, and and then Tesla will be in an extremely good position. So anyone who is a long-term investor I think will do extremely well and um here I Want to give a big shout out to the Tesla internal software? uh Team this is um, it's actually a a really big deal that Tesla has such a powerful internal software team. um I mean that that software team is responsible for handling the entire uh customer experience from from buying the car, delivering the car, uh, operating the factories, um, service and support. We internally wrote all of the Insurance and financial software um, the it's or the supply chain and Logistics stuff the data centers, the infrastructure, um, and the analytics.

Insight this is all uh, internally written Tesla software I think there's there are almost no companies in the world can do this. Uh, because they do not have uh, a very talented internal software team so they're generally reliant on third-party um, enterprise resource planning software. So but Tesla is not. this is this is this is a hidden strength of the company um 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, thank you, and uh as productive. We are highly confident that Model Y will be the number one best-selling car on Earth this year and in effect in Europe the best-selling car of any kind yeah, whatsoever it already was that at Q1 I should say um, it's not like will be It was that in Q1 and China's best-selling SUV and the United States the best-selling non-pecup vehicle in the United States in Q1. So um, you know what's going on? Okay, I don't know if this is like Optimal picture but um, the the Tesla cars are actually the the safest cars in the world. We put um, immense effort into vehicle safety and we keep updating the safety.

So we keep improving the automatic emergency braking system just with a software update and we keep improving the airbag deployment uh 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 that if the accident occurs, how do we deploy the airbags? uh, and the sort of the seat belt pre-tensioners to minimize the probability of injury.

Um, and uh. So even even for cars that people have owned for many years, we are behind the scenes. Uh, continuously improving the safety of of your car. and um I'm there even some things that I think a lot of people aren't aware of that we we actually have automatic cabin overheat protection.

so uh, never in the history of the company has a a child or a pet died in a Tesla so it's it's one of those like little known features. but uh, 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. Um, and uh, I think that's that's a you know big deal. So um, oh yeah.

so and then um, while lots of cars will say they've got like you know, five stars or or whatever, um, uh, there's there's Nuance to that. Um, when we do did the European end cap. uh, sort of active safety tests. Uh, we got the highest scores that they've ever seen.

So yeah, so we we we got a 98 uh score on active safety system. Um, which obviously isn't good enough. Um, and we will. but we we have got a game plan for getting rid of the last two percent.

That's it. And then it's worth noting Things like the total cost. ownership of a model 3 is now comparable to that of a Toyota Toyota Corolla So superchargers, We're making good progress. So our supercharger uptime is now 99.95 So yeah, and we have supercharges practically everywhere at this point.

No, I didn't Arizona Not going to Mega Pack. Um, because this is a stationary storage. It's an important part of solving the sustainable energy problem. Um, and to make the Tesla Magnifac is now more competitive than a natural gas Pico plant.

So we have very strong demand for the Tesla mega pack. Um, and uh, we're going to make a lot of them. So yeah guys, and this is the boring part. you should be answering questions after um and a while back I predicted that the Tesla um stationary battery pack business would actually grow faster than the automotive side of things and that's exactly what has happened.

Uh, you can see it's it's an it's an exponential curve uh growing in a rate that that is even faster than our vehicle sales. So so he should be giving updates hopefully on prices if more price drops are coming and also for expanding degree Factory Nevada the Cybertron for the Tesla semi-production line and for the 4680 in in-house cell production. and uh yeah, some Mega Factory stuff. So this is sort of we're aiming for 40 gigawatt hours a year both in California and in China.

but I think um, long term this will be uh much much greater than this. I mean I would say I Wouldn't be surprised if long term uh the stationary battery pack uh activity went well in excess of 500 gigawatt hours per year. So the the demand is like quite quasi infinite here. So um, as we look ahead to tackle the what we see as the choke points in the supply chain, one of them is uh, Lithium refining um and uh I mean there's been a few times on Tesla owning schools where I've said Can someone please just do Lithium or fighting um because uh, it's it's there's a shortage of it um and uh but we we really see very little activity that's outside of China for for lithium refining.

so um, 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. and so, uh, we've just Broken Ground on a Lithium Refinery and Corpus Christi which will be, um, do more lithium refining that I think probably everything. uh, outside of China so you know yeah and recite a deal for our next gigafactory. And in Mexico uh and I I think that's going to be a fantastic Factory So uh, yeah, we're We're laying the groundwork for um, ultimately getting to 20 million Vehicles a year.

There we go later this year. Yeah, so Cyber Truck is a hard car to make. Um, it's because it's a such a radically new design. It actually, you can't just use conventional methods of manufacturing.

We had to invent, uh, a whole new set of manufacturing techniques in order to build an exoskeleton based car instead of an endoskeleton based car. So it's It's extremely non-trivial to to build the Cyber truck, but we're making good progress on that. We have the um so so yes, it's a I that that's the the thing I when I um in the factory I I told the Cyber Truck Lines see how we're doing there and um, and uh, sorry for the delay, but we're finally going to start delivering production Cyber Trucks later this year. and I think the product that's what's going on is better than my expectations.

Thank you! I mean Cyber Truck is the is the car I will be driving on a day-to-day basis. Um so and you know people always want to know what our next product is. Um, oh let's see how it reacts, but this is not the time to. We also need to have a, you know, a proper dedicated product launch.

Um I I Just want to emphasize that we are actually building a new product. We are actually designing a new product. Uh, we're sitting on our hands here. Um, so uh, there are two new products that I think you'll 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 I would say of these these two new products just these two in your products alone. I I would say this what we'll probably make. Obviously, this is just you know, Elon's guess.

Um so you know both. Sue me. Um, but uh I I You know Elon's guess is that that will probably make inaccess of five million units a year of these two models combined. So yeah, yeah, faster options.

Thank you. These are all real By the way. imagine working like at Tesla This is your job. It looks like the iRobot here that was pretty wild looking I Think the thing um most notable is if you look at the difference between the last time we showed Optimus and and this was a video that was taken basically yesterday.

Um and the Optimus team was up all night. uh making this video. Um, the Optimus team has done an incredible job. Um so just yeah.

I Just bought two shares I Love that! Hugo and it's uh, the the the motors, the controllers, the electronics and everything you see in the Optimus robot is a Tesla designed uh system. So this is we actually tried to find Um Drive actuators and and whatnot that that were off the shelf. We we found that there weren't any Um in order to make Um and an effective uh 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. Um.

So we took our world-class motor and Power Electronics team and uh and said okay, we need to design several Um actuators that are that don't exist in the world. um and they did. So Optimus is is working quite well and then for full self-driving As for self-driving gets closer and closer to generalized real world AI That same software is transferable to a humanoid robot just like um, you know we. you know humans can obviously walk around with their arms and legs, but we can drive a car, fly a plane, uh, steer a boat, ride a horse if you have a generalized understanding.

or if you have generalized real world. AI which is what we are developing for full self-driving it can be transferred to basically anything. Um, and um. So optimists will use the same FSE computer as a car.

Um, and um The Optimist Stuff is is um I think somewhat but somewhat extremely underrated because they people just cannot comprehend the the the consequences. Now obviously we need to make sure that we don't have a Terminator scenario. that's very important. Uh, it's all fun and games until Terminator shows up.

Um, but uh, if you say like if you have had a cyber truck generalized, it's related. this year it was already like robots. Uh, what would be the effective ratio of humanoid robots to humans? because I think basically everyone would want one and and maybe people would want more than one. Which means the actual demand for for something like Optimus if it really works Um which will uh is uh I don't know I mean 10 billion units? It's it's it's some crazy number.

Um, it might be 20 billion units If The ratio is say two to one on people you know to humanoid robots versus people, it might actually be it's some very big number is what I'm saying. um and a number of vastly in excess of the number of carbs. Um, so my protection is that Tesla's long-term value will be based off of the Optimus majority of long-term value will be optimists. Um, and and that prediction I'm very confident of.

Yeah. So anyway, that's why Elon has said that. Uh, he believes Tesla will become the most valuable company ever. And that means it has to be an Apple at three to four trillion.

Whoops. Yeah, We also want to make sure. uh. retail investors, Please please vote.

Normally, retail investors? Uh, for most companies don't vote. but you know we really care about your vote. Um of of small investors, not just a lot of large investors. So please do register to vote.

Um, your vote is very important. Um, and uh yeah. I Think that's yeah. That's that's it.

So um, okay, 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. Um, sure.

Uh, you know we'll try to get through as many questions as possible and uh, you know you hit me with your toughest questions. Fine, Okay, it is. Hey Dad it's your son. Optimus Do you Do you see it more likely that you guys will have an RV first? or a cyber camper? Uh, well, we're we.

We don't have any plans to build an RV Uh, quite yet. Although I can certainly see how Cyber Truck could be converted into an RV Um, and we are, um, adding a lot of sort of attach points to Cyber Truck so others can build things you know, you know. starting to have a startup or other companies can build things that are attachments that enhance Cyber Truck and turn it into a camper essentially. Um, because I think it'd be really cool to have all these like third-party things available for Cybertron That's dope.

So this answer is no, but I mean you can also probably just you're that close. you can just say it or something I don't know. Actually, we'd like you guys to cue up behind us. Okay, all right, yes and uh, it to try to make the question short so we can get to a lot of questions.

Um so uh, Maybe Oh Oh You mean just like a just like a Tesla team doing a podcast about Optimus Oh yeah, yeah sure. um yeah, you know I wonder if um maybe we could add have a sort of like an addendum after the earnings call which is like a you know 30 minutes podcast on Optimus or something like for those who are interested. Okay, I think we'll do that. So yeah, hey loan, thanks for doing this today.

It's an awesome event! Thank you Welcome Thanks for coming Hope you guys having a good time! Yeah having a great time I I'm pretty confident we have the funnest, uh shareholders meeting by a long shot undoubtedly? Yeah, it's amazing. So I'm really excited about a lot of things with Tesla It's hard to pick a good question that is going to cover everything, but with the energy side of the business. I think it's hugely underrated. I mean we've got tons of problems because I'm in 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 programs being beefed up as well. So you know what are your thoughts there? How we can get people on board? Yeah, um, actually one of the challenges, um, in California and a few other places is that in order to have the power wool, um, be be like an uninterruptable past life for the house, we have to actually have a switch that, uh, disconnects you from the utility. Otherwise, you just, you know, send energy into the grid and it doesn't do anything. Um, and uh, that's actually been quite difficult with utilities.

but I'd like to thank PG E for for recently, uh, helping us. uh, get approval for installing the backup switch for Powerwall in California Uh, so that people can have uninterrupted power in California and we're working on that in every jurisdiction. So um, so I'm confident that that's that's a that's going to be a great long-term situation. And then as we mentioned, Mega Pack uh is is growing.

uh very very rapidly. um and uh yeah, so things are I mean things are really growing like ridiculously fast on the the energy storage front. So yeah I feel good about that situation? All right. Next question uh okay Elon um a lot of people have discovered how are you doing so just wondering what's up, how you doing, how you feeling? we saw you were partying in Cabo recently What me must have been someone else.

how are you doing just human to human? how you doing well I Have to say it's a bit of a uh you know, roller coaster situation. um and um, you know, like it's actually pretty rare for me to be at a party. um so that's like the you know first party I've been at in a while um and actually wasn't even going to go to it. then my brother talked me into it so thanks Cole um so um yeah I Have to say like the sometimes the the the work paint level is quite excruciating.

um and then 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. um but um you know there was a you know a short-term distraction because uh I had to do like some major open heart surgery uh on Twitter to ensure the company survival. um but that I think Twitter is now in a stable place and obviously very excited to have uh Linda Yakarino join and um so I I think Linda's gonna do a great job running running Twitter Um and I'll provide obviously guidance on uh, you know, a technology development. but as you can see, I think Twitter at this point has released more new features in the last six months than it has in the last six years.

So you know obviously this is not a Twitter meeting. but but. but but the the larger point is that I feel at this point I don't need to promote information. the amount of time that Twitter will take going forward is is a relatively small compared to the last six months.

Um, so yeah. um, you know you know, apart from like there's like some macroeconomic things that we can't do anything about. Um overall I feel uh, very good about the health of the companies and um I'm increasingly optimistic about the future. Thanks for asking.

It's kind of good to ask. Okay, Jesus Have you guys considered stretching out the financing terms on your auto business you talked about earlier? Uh, consumers don't necessarily look at the sticker price they're paying. they're all they're concerned about is monthly payment, right? And one of the fundamental advantages of an EV is that is substantially more durable. And so, um, would you guys ever consider stretching terms out to 10 years, especially in this rate environment.

Get in the shape of the yield curve, you know, extending the terms out that farther you'd actually be capturing a lower cost of funds. Yeah, I mean the important thing to appreciate is that like um, that that the vast majority of the the financing is from Banks So it's kind of whatever the banks are prepared. U.S Bank Um I mean this year? I Guess we'll do on the order of 100 billion dollars of sales. Um, and we don't have 100 billion dollars in cash to finance that.

So the vast majority has got to come from. uh, you know, from Banks Um, so it's really the bank's choice of what they're willing to do. Um, and it's It has been tricky with uh with with banks recently because as a mission, really, it's if you're a bank and you're not sure whether you're going to be alive or not. uh, you're that's it's a pretty big distraction.

And increasing your auto loan portfolio is, uh, very much a secondary priority. so it's just important to appreciate. It's not up to Tesla It's up to the banks. Um, and there's not.

There's not some easy solution where you can say have a circle a captive financing arm Etc Because you have to securitize those loads and the market for securitizing them is is weak. There is no, just I Wish there was an easy path, but but there isn't. Um, it's a good answer so you know I think Just important to remember. Remember that the economy moves in cycles and we've had a very long period of upcycle in the next 12 months will be I think difficult for everyone and I think you know when Berkshire Hathaway had their annual meeting.

Uh, foreign companies are going to make less money. Um and so and you know they're they're very well run organizations and I think that's just generally true for the economy so you know. But but. but it's also important to remember that you know there there are good times and and there are dog times.

but then the good times follow the dog types. So um, my advice would be don't look at the markets for the next 12 months. If if there's a dip, buy the dip. um I think it will not be sorry because I think the the you know there's just generally a sort of a there's an economic cycle to things, but things come back up.

So um my guess is tough times for a year like like I said just just my guess. uh and and but then Tesla will emerge stronger than ever. Um and the the long term if you say like net present value of future cash flows will be incredible in my opinion I like that in my opinion. in my opinion.

yeah hey, Elon me and Kevin here. hey, how's it going good Thanks! So uh Tesla is the largest position in my ETF ticker PP and uh, that's the rising power, right? and uh I'm curious. I Really think that some of the features that you highlighted here like the uh, over-the-air airbag deployments of improving the features? the safety features are great things that we could be advertising for: I Know you've heard this many before I know you have. but no, no.

I'm sorry, sorry, go ahead. Go ahead. 525 bucks off every car this year is half a Netflix's advertising budget. Thousand 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 Teslas are like super expensive and like no actually the starting price for a Tesla is below the average auto price in the U.S it's like and that's a good thing I mean I think it's it's good that it's that way. you know, like which our goal was always to make cars that are affordable to the general public. Um, so so I I hear you? I mean I think um and it's indeed ironic that you know what Twitter is like highly defended on Advertising So um, you? know here I am it's like uh, you know, never use advertising really before and uh now uh, have a company that's highly dependent on Advertising So um I I guess I should say advertising is awesome and everyone should do it. but I I I think I I share your your uh, sort of logical point which is that um, there are amazing features and functionality about Teslas that people just don't know about.

um and um so yeah. and and although there's there's obviously a lot of people that uh followed like say the Tesla account and and the uh, you know my account. whatever on Twitter um, uh, to some degree it is preaching to the choir and the choir is already convinced. Um so I think what you're saying.

um, this does have some merits and um, you know what? uh I believe in taking, taking suggestions. so um, we'll we'll try a little advertising and see how it goes. Okay, okay, all right I was I wasn't I Wasn't expecting that level of enthusiasm but uh okay, it sounds like our shareholders if I read between the lines subtle as it is or saying we should probably do some advertising. Okay, very well.

all right you for everything. So my question is regarding you. Recently asked Steam to the car and that's great. We can play video games.

It's definitely currently developing the ability for other parties to develop apps for the car for example, if we come by actually customizable teams for the operating system of the car, I think you you can make some Revenue there lights that's that space to use for the car or Lord of the Rings or stuff like that. Do you have any interest on that right now? Well, um I mean the important So I think the the notion of having entertainment, apps and whatnot becomes increasingly important as the cars achieve self-driving because otherwise the you you can only really watch, uh, play games, or watch movies or whatever. When the car is stationary, you know which, you know if it's charging or what, Whatever that then you can use it. but when it's when it's at the point in which it's full stop driving I Think it's very much about entertainment and productivity.

Um so I think that is something that might make sense in the future. Um, the but overwhelmingly the Focus right now for Tesla software apart from improving safety, is achieving full self-driving and then getting full self-driving to be much safer than human driving. Um and then once as we once we achieve full self-driving I Think that there could be a lot of opportunity for for apps and whatnot. Um, so, but you know, even the car as it is today for a Model S and X um, we've we've made a sort of a full um, uh, steam integration so you can actually just literally log on with it with a model SRX with your Steam account and play any game that is on Steam which is a lot of games.

uh which is pretty wild I think a lot of people don't know that uh you play with a keyboard and mouse. you can play with a joystick or controller. Um, you can also play Netflix YouTube or anything else. um iron for my little son x uh he loves watching uh you know actually loves watching Rocket videos uh in the on the in the rear screen of the the model S and X.

So um yeah so it is something that we will do long term. but one of the things we already have a lot of stuff there and and we'll do more as uh, self-driving becomes a reality. So okay hey Elon I'm John or Dr know it all on YouTube and I don't know it all. But anyway my question is as you guys move completely or finish the transition and full self-driving from version 1.0 of the software to 2.0 what do you perceive of as the like potential stumbling blocks after that because it seems like that's the major you know kind of 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 about you about full self-driving like I'll spend two hours just that. So well there's this when I can really think about full self-driving as um, uh, sort of a March of nines of reliability. So we we need to get to the point where the probability of injury is uh, lower than that of the average human driver and then ultimately, probability of injury is much lower. So even at the point in which the card is capable of driving itself, there's still actually a lot of work to do.

Um, because you know every year there's a million people that buy in auto accidents and I think, uh, probably everyone in this audience has friends and family that that have died or been seriously injured in auto accidents. Um, and and for every there's like a million people that died, there's there's 10 million people roughly that are seriously like permanently injured. Um, and um. and and and so it matters that we.

you know, if if we can get that, um, down by an order of magnitude, you know there's like 900 000 lives saved per year. Maybe nine million severe injuries prevented per year. Um, and so that that really I think morally has to be our primary goal. Um, and um, I I guess I'm open to uh, an interview on on FSC Um, two hours a long time.

But um, okay, okay, um, all right. I'll I'll do an interviews. Okay, okay, um, all right. I'll I'll do an interview it's gonna be on Twitter But sure, All right.

I hey Elon I'm Josh Phillips long-term retail investor My questions about uh, retrograde lithium supply in the next 10 years um you know Lithium experts all agree that mines are just not coming on online fast enough uh to meet battery supply and actually Drew barely no point 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? uh at the Mine level outside of refining but also at a deeper level than a traditional off take because as we know he who controls the spice controls the universe? Sure, Um so um I I Actually think that the the industry analysis is is incorrect. um and the the constraint is fundamentally that of processing.

Um so um now our refinery in Corpus Christi that we're building is um, you know, primarily oriented towards refining Spider-Man um of which there is a truly vast amount in the world. Um about I think about three quarters of our lithium comes from Australia Um and frankly you could increase the rate at which the Mayans are operating. um and the limiting factor is uh is is not how fast can you mine but how fast can you can you process So the the the minds are only gonna produce ore at the rate at which refineries can handle the ore or the is pointless. So I think my opinion and obviously I could could be wrong about this but is is that it's it's really not not about the lithium or lithium is extremely common.

Lithium is everywhere in every every country's got Lithium. It's not like oil, so lithium is one of the most common elements on Earth. Um, 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 All right guys! I'm gonna be closing out the live stream I Just want to do a quick little recap on Tesla's performance since the shareholder meeting started. so it looks like Tesla closed up 1.67 in the green.

Uh, we gapped up and this was shortly after Elon began talking about the Cyber truck and also the Optimus robot. For those that didn't hear, uh, he believes the Optimus robot is going to be one of the items that really takes Tesla to the next level. and then in the next 10 years he thinks that Tesla itself will become the most valuable company in the world. Uh, he thinks when it comes down to the Cyber truck, uh, it should be ready and should be producing right? You said producing uh production should uh start towards the end of uh this year And then he talked about two other vehicles.

um or it is. Yeah, he called them products so they didn't call them Vehicles they call them products. Uh, two other products that should be released or at least showcased hopefully soon. He didn't give too many, uh, too much detail about it, but he said about 5 million units should be sold of these products a year, right? So is it going to be a cheaper vehicle that instead of the Tesla Model 3 it's going to be the Tesla Model what four or I don't know what what he's going to add to it Tesla Model 2 and it's going to be a cheaper 25 20 000 range Tesla And then what could the other item be I mean he already talked about the Cyber truck.

He talked about the semi talked about Optimus so your guess is as good as mine. Uh, but just want to say thank you again for tuning on in. Um, he one of the biggest things that I think uh we want to highlight with what Elon said. it's not even just talking about Tesla but it's about the overall economy that he sees that for the next 12 months he was kind of like, uh, don't even look at the stock price for the next 12 months.

So I would say in a very light-hearted way he's just kind of trying to give you some insight that he does think that we're going to go into a potential recession and things might get worse before they get better. But ultimately right, a strong company comes out out even stronger after a recession. So he said, if you're a long-term investor, don't worry about it. We got you covered.

We are set to be the most valuable company that's publicly traded in the next 10 years. But next 12 months, not just for Tesla But as you know the economy as a whole, he does expect it to kind of slow down and maybe take a hit. So I think that's important to kind of just take notes of recapping that cyber. Roundup If you have any questions about what was talked about today, guys, feel free to message me via Discord That's that second link in the description down below.

If you don't see any of the links, refresh this video and it's all. Linked In The description I Do want to invite all of you guys to our free Live trading session I'm going to be giving away one thousand dollars during this free live training session this Friday And that's that first link in the description down below. If you want to save your free spot I've given away two thousand dollars already on May 5th we gave it away live to Kevin Quinn and then on May 12th. uh teen Tran we give it away.

Live So again. Well on May 19th. so just in a few days, right? three days total from now I'm gonna be giving away another one thousand dollars. Will it be to you? I Don't know, right? You have to save your spot I'm gonna be giving away a thousand dollars and you also get an inside look of what it's like to watch me trade live in the stock market.

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