Full Recap of Tesla Shareholder Meeting: Model 3, Y, Semi, Gigafactories, Supercharging + More

4 months ago by EVANNEX 16

Tesla Model 3 first deliveries confirmed for July

SHAREHOLDER MEETING: MODEL 3 AND TESLA’S MASTER PLAN COME INTO SHARPER FOCUS

Yesterday, Tesla held its annual shareholder meeting at the the Computer History Museum in Mountain View, CA. As always, the shareholder meeting was chock full of important Tesla news. Elon Musk took the stage in good spirits. And although Musk spoke at length about the Model 3, he spent quite a bit of time discussing (in much more detail than quarterly earnings calls) his progress related to Tesla’s forward-thinking Master Plan. Following is a recap of key takeaways from yesterday’s shareholder meeting.

*This article comes to us courtesy of Evannex (which also makes aftermarket Tesla accessories). Authored by Matt Pressman.

Tesla Model 3

Red Tesla Model 3

Tesla Model 3

Tesla is “definitely” on track to begin Model 3 production in late July as Musk reiterated a fast-paced Model 3 ramp-up ahead. However, Musk noted that if you put a deposit down now, you’d likely wait until the end of next year before taking delivery. Tesla is seeing “more and more deposits every week” and he admitted that the Model 3 line isn’t getting any shorter. In addition, Musk said you’ll see more “used” Model S vehicles getting attention on Tesla’s website. Anti-selling the Model 3 once again, Musk noted that you can already buy an older Model S for the price of a Model 3.

Above: Model 3 on Tesla’s test track in Fremont (Youtube: Model 3 Owners Club)

Tesla’s Model 3 will first be available with a single motor, rear wheel drive option only. Musk said Tesla hopes to offer a dual-motor version “by late this year, but more likely next year.” He noted that they’re keeping configurations simple at the beginning. “Initially, the Model 3 configurator — it’s kind of going to be like what color do you want and what size of wheels do you want,” Musk noted. He mentioned that newer options and a dual motor configurator will (likely) be forthcoming by the end of this year or early next year. Musk reiterated that the team is focused on getting the production ramp right — making sure that quality and safety are the top priorities.

Tesla Semi Truck

Musk confirmed that a working prototype for Tesla’s semi truck is scheduled to be revealed at the end of September. Production for the Tesla semi would be taking place in 18-24 months and Musk noted that trucking companies are already providing valuable input. Musk elaborated: “…we have shown it to a number of the organizations that buy heavy-duty trucking and they all love it. They just want to know how many can they buy and how soon.”And we are getting them (trucking companies) closely involved in the design process.” He also teased that something else (unexpected) will be revealed at that time. “There is a few other things I haven’t mentioned here, I’m going to…I just like, really recommend showing up for the semi-truck unveiling,” he said.

Tesla

Tesla Semi

Tesla Model Y

The Tesla Model Y will not be derived from the Model 3 platform. It will be designed from the ground up to fit what it’s supposed to be —no need to “shoehorn” something into an existing architecture that doesn’t make sense. Musk also thinks demand for Model Y should exceed demand for Model 3. He said that “major manufacturing improvements” can be accomplished and that capital expenditures can decrease “by a factor of two” going from Model 3 to Model Y. How? He wants to simplify the Model Y’s supply chain and minimize risk by buffering the parts. He noted that the Model Y will require a new plant as there’s no longer room at the Fremont factory. Look for Model Y sometime in 2019.

Tesla Model Y teaser image, hmmm… no side mirrors? (Source: Tesla*)

Tesla Gigafactories

When discussing Tesla’s Gigafactory, Musk explained that it will produce the world’s highest energy density batteries with the lowest cost per kilowatt hour — which is “a great position to be in” relative to other automakers and battery companies. This year, Tesla plans on three more Gigafactories to be announced. He emphasized that “there’s no one else even attempting anything on this scale.” Looking ahead, Musk predicted 10 – 20 Gigafactories in Tesla’s future. To put this into some perspective, Musk noted on Twitter that the number of factories it would take to duplicate Ford’s worldwide production of ~7 million vehicles annually would be just four to five.

Tesla Gigafactory Aerial

A look at Tesla Gigafactory 1

Factory Safety

With the added pressure of an accelerated Model 3 production ramp and the UAW breathing down his neck, Musk emphasized that factory safety remains a top priority. Tesla recently made the change to three shifts instead of two in order to alleviate long hours. In addition, Tesla is adding more emphasis on ergonomics and improved tooling. Musk noted that they’re on track to be less than half the injury rate of any other auto factory. Musk is personally meeting with Tesla’s safety team every week and he’s actively working to have the best factory safety record in the world.

Tesla

Tesla Fremont Factory Store

Tesla Superchargers

Musk announced that Tesla will start adding amenities to some of the more popular, busy supercharger stations. He also emphasized Tesla’s shift to more supercharger installations in city locations — although these may have less power than that of typical off-the-highway superchargers. That said, it appears they’re working to set up a new urban charging network. This year, Tesla is doubling the number of superchargers to 10,000. Next year, Musk forecasts at least a 50% increase in superchargers, or, a doubling of the network again. He reminded shareholders that there’s simply no other fast-charging network in the world comparable to Tesla.

Tesla

Tesla Superchargers in Barstow, CA in action (Image via PlugShare)

Tesla Insurance Premiums

With news of AAA increasing premiums on Teslas, Musk said the simple solution is to change insurance providers. He said that based on Tesla’s research, the average rate for insuring a Model S is actually 5% lower (on average) and with the right provider it could be 20-30% lower than comparable premium sedans. In any event, if this becomes an issue, it’s likely Tesla could enter the insurance business itself according to past reports. After all, one of Tesla Autopilot’s key features, Autosteer, has already been shown to decrease the accident rate by 40% according to the NHTSA.

Clean Energy Powerhouse

With Trump’s rejection of the Paris climate accord all over the news this past week, Musk took time to explain Tesla’s trifecta of clean energy — solar, storage, and electric vehicles. He pointed to a recent case study (see below) and explained, “It’s a fully contained energy solution that could scale for the whole world… There’s an island in American Samoa that is totally off the grid. And continents are really just very big islands. So you can do this with a continent.” Hint, hint.

Above: Tesla is transforming American Samoa’s energy paradigm (Youtube: Tesla)

Shareholder Vote of Confidence

At the meeting, shareholders gave Elon Musk a vote of confidence by rejecting a proposal to require a yearly election of board members. Board members currently serve three-year terms. Musk mocked calls for changes to Tesla’s board on Twitter in April, saying those complaining “should buy Ford stock. Their governance is amazing…” Since then, Musk has surpassed Ford’s (and GM’s) market value and continues to hit all-time highs on Wall Street. Musk also told shareholders that Tesla is interviewing independent director candidates and plans to add 2-3 new directors to the board “from a broad range of industries” in a month or two.

Tesla

Tesla CEO Elon Musk

Elon Musk’s Schedule

Musk said he splits at least 90% of his time between SpaceX and Tesla. He admitted more time was devoted to Tesla as it’s a bit of a “drama magnet.” The remainder of his work hours go to Neuralink (3-5%), The Boring Company and Open AI (each about 2% percent). How does he spend his time when he’s not in the midst of working 100-hour weeks?  Musk explained, “I listen to music in the car.” He spent the weekend watching Wonder Woman with his children. What else? “Hang out with [the] kids, see friends, normal stuff. Sometimes go crazy on Twitter.” So, why the crazy rants on Twitter? Musk joked, “You know… [sometimes] there’s a little red wine, a vintage record player, some ambien… [and then] magic. Magic happens.”

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*Source: Tesla 2017 Annual Shareholder Meeting

*Editor’s Note: EVANNEX, which also sells aftermarket gear for Teslas, has kindly allowed us to share some of its content with our readers. Our thanks go out to EVANNEX, Check out the site here.

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16 responses to "Full Recap of Tesla Shareholder Meeting: Model 3, Y, Semi, Gigafactories, Supercharging + More"

  1. Boris says:

    Am I the only one who finds the Ambien comment disturbing? Please somebody calm me down and tell me this is business as usual in the USA…

    1. Pushmi-Pullyu says:

      The article describes that comment as a joke, and it reads like a joke. So what’s the concern? A little humor is appreciated in any long meeting, to break up the tedium.

    2. Nix says:

      It is humor as usual in the USA. It might not translate…

    3. vdiv says:

      Prescription drug abuse in the US is not a joke, it is an epidemic hurting an increasing number of people, and we are all succeptible.

      1. David says:

        Who said anything about drug abuse? People with brilliant minds probably have difficulty shutting down and going to sleep. Ambien is the perfect prescription medication for occasional use to help get some sleep.

      2. Pushmi-Pullyu says:

        In our increasingly Politically Correct society, it seems that more and more people take casual jokes far too seriously.

        Or to put it another way: These days it seems that no matter what you say, some people with a severely underdeveloped sense of humor will reach very far to find an excuse for taking offense. 🙁

        1. AlanSqB says:

          Why can’t they just take a valium and calm the hell down?

      3. Someone out there says:

        Indeed. There seems to be a culture in the US that everything can be fixed by popping a pill. Sadly, legally prescribed drugs kills a lot of people every year. I’ve even seen stories that legally prescribed drugs now kill more people than illegal drugs but I’m not sure how good the source is for that.

    4. Mikael says:

      I did not find it disturbing since I did not know what Ambien was but thought that he meant like ambient (lighting), some candles or cool leds in a dimmed room, but cut the word/sentence short.

      1. Tom says:

        Nope, it’s Ambien. Doubt it was a joke. Extremely common for people like him to ‘modulate’ by taking some kind of stimulant to remain active all day then a sedative to counteract the stimulant. Some are fairly successful at this, others die. Steve Jobs used to say that LSD was one of the most important things he did and it is how he created. Cocaine was obviously the stimulant of choice in the 80s. These days things like a little ephedrine which rumors say Trump uses are popular. Mild meth basically.

        Lots of celebrities speak of this and it is widely used in frankly upper class people period. They get a doctor to prescribe uppers and downers effectively speaking. Or at least one of those two and improvise on the other end. They just figure they are smart enough to know how to handle it.

    5. JIMJFOX says:

      In 2013, the Food and Drug Administration required manufacturers to decrease the recommended dose for women by half, after studies showed that the medicines can leave people drowsy in the morning and at risk for motor vehicle collisions. The FDA recommended that manufacturers extend the new dosage cuts to men as well.

      VERY unfortunate ‘joke’ from Elon —
      “motor vehicle collisions?”

  2. Martin Winlow says:

    “Musk forecasts at least a 50% increase in superchargers, or, a doubling of the network again”

    Increasing the size of something by 50% does *not* double its size! It increases it by half. Ie 100 becomes 150.

    1. Pushmi-Pullyu says:

      You’re ignoring the “at least” qualifier. I suspect Elon is capable of performing basic math. Perhaps he meant to suggest the low/high parameters for the increase: possibly an increase by only 50%, or possibly as much as a complete doubling, or anything in between.

  3. Scott says:

    What does this mean: “He wants to simplify the Model Y’s supply chain and minimize risk by buffering the part”?

    Does buffering parts mean having a stockpile such that should supply be interrupted – production can continue? This is something that is very-UN-lean and tends to be extremely inefficient, hence Just-In-Time manufacturing.

    Or does it mean that Model 3 and Model Y will use common parts despite a different platform?

  4. 2EVsCO says:

    As far as mixing alcohol and prescription drugs, Stoopid to brag about it.

  5. 2EVsCO says:

    My guess is Tesla semi drives by itself to unveil event with the model Y in back of trailer.

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