Elon Musk: “Tesla Master Plan 3 is fundamentally going to be about scaling up”
Tesla held its annual meeting of shareholders today. (You can watch the whole thing on YouTube below.) Here are some highlights from the meeting. Overall, as Elon Musk likes to do with these and as I predicted earlier today, it was largely a reflection of how far Tesla has come over the past decade, from the launch of the Model S. He talked about future growth plans like well, and he mentioned the AI side of Tesla, but indicated that a lot more on that topic was being saved for the day of the IA on September 30, 2022.
One of the first comments he made was that Tesla was aiming to hit a production rate of 2 million cars a year by the end of the year. As Clean Technica recently predicted would happen, he also noted that Tesla produced its 3 millionth car in recent weeks. He referred to the fact that 10 years ago, in August 2012, they had produced less than 3,000 vehicles, and in such a short time that number had grown to 3 million.
Elon joked, “It sounds like one of those business plan pitch things that doesn’t actually happen, but, you know, you see it in the venture capital business plan situation. But it’s Actually true. This is the amazing part.
I think the biggest news, though, is that he said the Tesla Master Plan 3 – which he recently hinted was coming – “is fundamentally going to be about scaling.” It’s not just about scaling car production, but scaling the entire supply chain that also powers this electric car production. “You just have to look at the overall problem from a global macroeconomic perspective and say, ‘What are all the things that are needed to achieve a fully sustainable economy.’ […] What tonnage of lithium, cathode, anode, separator, electrolytes, electronics – what are all the things that need to be done to transition to a fully sustainable global economy? Which I think the sooner we do it the better for the planet.
“I think you just have to articulate that and make it clear that it’s totally doable, and that’s is being done, and we just want it done as quickly as possible.
On Tesla’s financial trends over time, he noted that the chart above “roughly followed a kind of mental pain, actually (hahahahahaha) — psychic damage. On a more serious note, he added, “I’m just really proud of the fact that we’ve been able to produce more money than we’ve spent, and that we have positive retained earnings, and that we’re basically worth our salt. ” Then he said in a calm, pleasant voice expressing an understatement, “And I think, uh, it’s going to go up from here.”
During the Q&A session, someone asked if Tesla would ever consider stock buybacks, and Elon said that could be on the table if Tesla spends all the money it can to grow and has grown. a healthy cash cushion that could help the company out of a deep recession or something like that. (He also talked a bit about recession risk, but pointed out that he thinks we’ll dip into a mild recession at most, because there aren’t really any fundamental economic shifts at play like the ones that led to the last great recession.)
When it comes to finances, Tesla now has the best operating margin in the industry (see chart above). I’m sure we’ll come back to this main article soon.
As a final note right now on the topic of ramping up production and when asked about the Tesla Cybertruck, Elon noted that Tesla is installing production equipment for the truck right now. They still plan to be in volume production in a year. Imagine how many units of this truck will be produced over the next decade!
You can now watch the entire Tesla shareholder meeting here:
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