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Live Blog: Tesla (TSLA) 2021 Annual Meeting of Stockholders

Credit: Tesla/YouTube

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Tesla’s (NASDAQ:TSLA) 2021 annual shareholder meeting comes at a historic time for the company. After delivering a record 241,300 cars in Q3 2021 and producing 237,823 vehicles in the quarter, all eyes are now on Tesla and its capability to ramp even higher in the the fourth quarter.

Unlike the previous years, Tesla’s 2021 annual meeting of stockholders is completely virtual. A livestream of the meeting could be found here. Topics that will be discussed by the company remain to be seen, though questions submitted to Say, an Investor Relations platform, include inquiries about a potential stock split, Cybertruck production, dividends, and 4680 cell production.

The following are live updates from Tesla’s 2021 annual shareholder meeting. I will be updating this article in real-time, so please keep refreshing the page every minute or two to view the latest updates on this story.

Credit: Tesla/YouTube

15:51 PT – And that’s a wrap! Thanks once more for staying with us for this Live Blog. This year was definitely great. Lots of new updates, and high-spirits Elon is always welcome. Till next time then, everyone! Now signing off!

15:50 PT – Elon notes that Giga Texas would be making the Cybertruck and the Tesla ATV. He admits that ATVs are inherently dangerous. So Tesla’s goal would be to make the least dangerous ATV. Low center of gravity and everything. “You’ve got to have one with a Cybertruck.” As for electric planes? “Maybe one day,” Elon said.

15:48 PT – More energy storage projects will likely happen in Texas. Elon notes that Tesla is in talks with ERCOT for more potential projects. As for Tesla Insurance, it’s a regulatory labyrinth, Elon notes. “There’s a zillion applications, and you have to wait for a long time. And most of it is state-by-state,” the CEO added, though he notes that Tesla Insurance is launching in Texas next week.

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15:43 PT – Tesla’s first off-planet factory? “I like the way you think. I’d like to see one before I’m dead though,” Elon noted. Oh and Elon’s Safety Score? “I don’t know actually. Yeah, I don’t know what it is, because mine just got turned on. I’ll find out,” he said.

15:41 PT – Elon notes that lithium is plentiful. It’s so plentiful that it’s actually harder to find places where there is no lithium. “What actually matters is the cathode. Our long-range vehicles use a nickel-based cathode. But for our Standard Range vehicles and stationary vehicles, we’re using iron-based cathode,” Musk said, adding that while nickel is not rare, iron is just that much plentiful.

15:39 PT – Audience questions begin! Elon jokingly tells the audience to just yell out their questions since there’s no microphone. Unfortunately, the audio is lacking. However, Elon responds to the inquiry by stating that the annual global capacity is about 100 million per year. So mining for battery materials will stop when the transportation sector becomes electric. By this time, key battery components could be recycled. This will happen in about 30-40 years, Elon said.

Credit: Tesla/YouTube

15:38 PT – Elon highlights the importance of solar and batteries. He notes that he was in a friend’s house when he experienced the Texas freeze earlier this year. Unfortunately, his friend had neither solar nor Powerwall, so they essentially froze themselves out in the dark. The CEO also confirms that yes, FSD Beta 10.2 is on track for a rollout Friday night to owners who have a perfect Safety Score. “It’s looking really good,” he said.

15:33 PT – And here’s a question on a Tesla Minibus. Elon notes that he is actually a big fan of the original VW Minibus. “I think over time, I think Tesla would make all major variants of vehicles. One in every significant category,” he notes. As for Solar Roof, Musk notes that the company is actually making some rapid progress. “Energy, in general, got shortchanged since we were focused on Model 3 production. It was all hands on deck. So we’re a couple of years behind on that. But I think we’re making progress on Solar Roof,” Musk said, adding that Solar Roof is currently far more efficient with new home builders. It’s just harder to have the Solar Roof retrofitted to an existing roof.

15:29 PT – Elon also notes that Tesla’s next Gigafactories would not necessarily be bigger by footprint, but they would be more and more advanced. This pretty much confirms that the “Terafactory” concept would probably not be that much larger than the company’s current Gigafactories. But their output would be nothing but insane. “Not all Gigafactories will get bigger with each iteration. They will get more advanced and more efficient,” Musk said.

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15:28 PT – As for the ramp of Tesla Energy, Elon notes that this year has not been a good guide for Energy’s progress, since the company’s battery storage products have taken a step back compared to the company’s vehicles. Oh, and there’s no “Model 2.” “The ‘Model 2’ is not a car,” Elon said.

15:26 PT – Dividend plans? Elon notes that there are no plans for dividends for now.

15:25 PT – Any new factories? Musk laughs a bit, adding that building factories is pretty hard. “Hmm. I think we’ll start scanning for locations next year. But I think we can do a lot with Berlin and Austin and expanding in China and Fremont, so the nice thing is having a factory in Europe, China, and North America. We’ll at least have factories for high-volume products in places where customers are,” Musk said.

Credit: Tesla/YouTube

15:24 PT – Tesla next-gen Roadster is coming on 2023, hopefully. The production of the 4680 cells would likely not start in Texas this year, but Kato is ramping. Musk notes that for all intents and purposes, the Kato site is a big battery plant on its own with its 10 GWh capacity. “In Tesla land, it takes longer to build the factory than to reach high volume production,” Musk said. He uses Giga Shanghai as an example, as it was built in 11 months, but it took 12 months to reach volume production.

15:23 PT – Tesla starts taking on the Say questions. First up is about Cybertruck production. Elon highlights that Tesla is limited with the supply chain shortages, and not just chips either. So even if the company produces the Semi and Cybertruck now, there won’t be any volume anyway since the supply chain is strained. Initial production of the Cybertruck and Semi should start next year, with volume production in 2023.

15:20 PT – “We’ll continue to expand in California significantly. But even more so here in Texas,” Musk said.

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15:19 PT – And Tesla’s headquarters is now in Austin, Texas. The announcement was met with much applause. And that logo looks sick! This does not mean that Tesla is “leaving” California, however.

15:18 PT – Elon talks about AI Day, and states that it was necessary to shift the perception of what Tesla really is. “Tesla is as much a software company as a hardware company,” Musk said. He did state that AI Day was successful, as the company received an influx of applications for its AI Team. This means that the Tesla Bot is really a go?

Credit: Tesla/YouTube

15:16 PT – Elon addresses some of the concerns about methane and batteries. “You can recycle batteries. It pays to do recycling for batteries,” Musk said. He adds that he experienced the Texas blackouts personally. He notes that things would have been better if houses had solar and Powerwall when the blackouts happened. Elon also adds that Tesla’s factory safety has improved to about 18% above the industry standard. “Our goal is to have the safest factory on Earth,” he said.

15:14 PT – Elon proposes the carbon tax. “Can there be a carbon tax, what the hell?” Elon jokes. “It’s really needed,” he added.

15:13 PT – The Fremont Factory is set to be optimized further, however. Needless to say, Tesla seems to be on a path to produce large numbers of its vehicles in the coming years. Elon also cites Tesla’s Impact Report, and how the company reaaallllyyyy tries to do the right thing. 🙂 *insert a well-timed eye-roll from the CEO here.*

15:10 PT – Elon reiterates that the fundamental good of Tesla would be determined by how the company could accelerate the advent of sustainable energy. Elon Musk confirms that Giga Shanghai now exceeds the Fremont Factory. He praises Giga Shanghai, for its amazing vehicle quality, operational efficiency, and low drama. That’s not a bad combination at all.

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15:09 PT – Elon notes that he likes fusion as an idea, but there’s a giant fusion reactor in the sky that we can tap into every day. So why not use it?

Credit: Tesla/YouTube

15:08 PT – Elon adds that Tesla has had difficult years financially. He jokes that he definitely does not want to revisit those years. The CEO also adds that Tesla’s finances should be even better, especially as FSD matures. Elon did admit that Tesla has had to raise vehicle prices for a bit due to the supply shortages, but hopefully, these are just temporary. He also reiterates Tesla’s need for more batteries. Batteries from suppliers, and more from Tesla. “As many cells as you can supply to us, no limit,” Musk said, referring to conversations he’s had with Tesla’s battery suppliers.

15:04 PT – Elon notes that Tesla is growing like crazy. But only if the chip shortage alleviates soon. He notes that the Model 3 has become the best-selling premium vehicle globally. “I almost got arrested for claiming that we’ll do 5,000 (Model 3) a week. Well, who’s laughing now,” Elon laughs. Oh, and the Model Y would be even more successful. Tesla just needs Berlin and Austin to get online.

15:03 PT – Elon’s here, dressed for Texas. He starts off by thanking the Tesla team for getting the company to where it is today. He cites the company’s record deliveries and production.

15:02 PT – Now we’re just waiting for Elon. And he’s here.

15:00 PT – Viecha notes that the polls are now closed. Tesla shareholders have approved most of the company’s suggestions. And now that the voting has been adjourned, we now move to the company’s updates, with Elon Musk at the helm. Here we go.

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14:58 PT – So far, four out of five proposals have focused on worker/human rights.

Credit: Tesla/YouTube

14:56 PT – Viecha explains that the next “No” recommendation from Tesla involves additional reporting on human rights. A member of the Sisters of Good Shepherd New York cites the human rights impact of cobalt, a controversial material that still sees child labor in the Congo region. She asks Tesla to be open for a third-party report that would show how the company handles the human rights challenges for its business.

14:53 PT – Viecha explains that the next “No” recommendation from Tesla involves a call for the board for strategic oversight of the company. A representative of the shareholder explains that investors are focused on the role of effective human capital in a company’s operations. He argues that Ford and GM have both made efforts to improve their human capital management. He also reiterates the $137 million jury order over alleged racism incidents at the Fremont factory.

14:48 PT – Viecha explains that the next “No” recommendation from Tesla involves employee arbitration. The shareholder’s representative notes that this resolution requests Tesla’s leadership to be more transparent. She cites the $137 million jury order that Tesla was faced with earlier this week as an example of this. “A diverse workforce is shown to create a more innovative environment,” she said.

14:44 PT – Viecha explains that the next “No” recommendation from Tesla involves diversity and inclusivity. The shareholder cites Tesla’s diversity report. She notes that they support the company’s efforts. She calls for more diversity in the workforce, as research shows that a more diverse workforce is more productive. The shareholder also noted that the company’s leadership is still mostly male and white.

14:41 PT – Viecha explains that Tesla is recommending that Tesla vote “No” to the notion of keeping board members for just one year. The shareholder who proposed the motion is explaining his stance virtually, but the connection is not very good. Ah, the pandemic times.

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14:38 PT – Martin Viecha opens the meeting. Voting formally begins.

Credit: Tesla/YouTube

14:37 PT – Denholm thanks her fellow board members, particularly Antonio Gracias, who is retiring from the board. “Antonia, we appreciate everything you’ve done for the company. We will miss you,” Denholm said. She also thanks TSLA shareholders. “Our shareholder base is the most engaged base we have ever seen,” the Chair added. She hands over the floor back to Viecha.

14:35 PT – Denholm adds that while Tesla’s performance today has passed expectations, Tesla is just starting. She reiterates the company’s 20-million-vehicle target for the end of the decade. “The automotive and energy sector have to become full electric. There’s no question about it… We need continue to grow exponentially to have true impact for our planet and shareholders,” she said, adding that Tesla’s employee headcount is now approaching 100,000 people.

14:33 PT – Denholm states that’s he would lie to recap the last 12 month. Over 800k vehicles produced, the 4680 cell production project. “Over the last 12 months, Tesla has continued to help shift the public reception of electric vehicles,” she said. Totally true.

14:31 PT – And we’re starting on time! Martin Viecha is opening the program. Giga Texas is looking pretty darn good. Tesla Chair Robyn Denholm takes the stage.

14:30 PT – Good day, everyone! Any bets if we’re starting on time today or if we’re on Elon Time? We did just get a notification that we’d start in 3 minutes or so. Let’s get ready.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Investor's Corner

xAI targets $5 billion debt offering to fuel company goals

Elon Musk’s xAI is targeting a $5B debt raise, led by Morgan Stanley, to scale its artificial intelligence efforts.

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(Credit: xAI)

xAI’s $5 billion debt offering, marketed by Morgan Stanley, underscores Elon Musk’s ambitious plans to expand the artificial intelligence venture. The xAI package comprises bonds and two loans, highlighting the company’s strategic push to fuel its artificial intelligence development.

Last week, Morgan Stanley began pitching a floating-rate term loan B at 97 cents on the dollar with a variable interest rate of 700 basis points over the SOFR benchmark, one source said. A second option offers a fixed-rate loan and bonds at 12%, with terms contingent on investor appetite. This “best efforts” transaction, where the debt size hinges on demand, reflects cautious lending in an uncertain economic climate.

According to Reuters sources, Morgan Stanley will not guarantee the issue volume or commit its own capital in the xAI deal, marking a shift from past commitments. The change in approach stems from lessons learned during Musk’s 2022 X acquisition when Morgan Stanley and six other banks held $13 billion in debt for over two years.

Morgan Stanley and the six other banks backing Musk’s X acquisition could only dispose of that debt earlier this year. They capitalized on X’s improved operating performance over the previous two quarters as traffic on the platform increased engagement around the U.S. presidential elections. This time, Morgan Stanley’s prudent strategy mitigates similar risks.

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Beyond debt, xAI is in talks to raise $20 billion in equity, potentially valuing the company between $120 billion and $200 billion, sources said. In April, Musk hinted at a significant valuation adjustment for xAI, stating he was looking to put a “proper value” on xAI during an investor call.

As xAI pursues this $5 billion debt offering, its financial strategy positions it to lead the AI revolution, blending innovation with market opportunity.

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Tesla tops Cathie Wood’s stock picks, predicts $2,600 surge

Tesla’s future lies beyond cars—with robotaxis, humanoid bots & AI-driven factories. Cathie Wood predicts a 9x surge in 5 years.

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Cathie Wood shared that Tesla is her top stock pick. During Steven Bartlett’s podcast “The Diary Of A CEO,” the Ark Invest founder highlighted Tesla’s innovative edge, citing its convergence of robotics, energy storage, and AI.

“Because think about it. It is a convergence among three of our major platforms. So, robots, energy storage, AI,” Wood said of Tesla. She emphasized the company’s potential beyond its current offerings, particularly with its Optimus robots.

“And it’s not stopping with robotaxis; there’s a story beyond that with humanoid robots, and our $2,600 number has nothing for humanoid robots. We just thought it’d be an investment, period,” she added.

In June 2024, Ark Invest issued a $2,600 price target for Tesla, which Wood reaffirmed in a March Bloomberg interview, projecting the stock to reach this level within five years. She told Bartlett that Tesla’s Optimus robots would drive productivity gains and create new revenue streams.

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Elon Musk echoed Wood’s optimism in a CNBC interview last month.

“We expect to have thousands of Optimus robots working in Tesla factories by the end of this year, beginning this fall. And we expect to scale Optimus up faster than any product, I think, in history to get to millions of units per year as soon as possible,” Musk said.

Tesla’s stock has faced volatility lately, hitting a peak closing price of $479 in December after President Donald Trump’s election win. However, Musk’s involvement with the White House DOGE office triggered protests and boycotts, contributing to a stock decline of over 40% from mid-December highs by March.

The volatility in Tesla stock alarmed investors, who urged Musk to refocus on the company. In a May earnings call, Musk responded, stating he would be “scaling down his involvement with DOGE to focus on Tesla.” Through it all, Cathie Wood and Ark Invest maintained their faith in Tesla. Wood, in particular, predicted that the “brand damage” Tesla experienced earlier this year would not be long term.

Despite recent fluctuations, Wood’s confidence in Tesla underscores its potential to redefine industries through AI and robotics. As Musk shifts his focus back to Tesla, the company’s advancements in Optimus and other innovations could drive it toward Wood’s ambitious $2,600 target, positioning Tesla as a leader in the evolving tech landscape.

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Investor's Corner

Goldman Sachs reduces Tesla price target to $285

Despite Goldman Sach’s NASDAQ: TSLA price cut to $285, Tesla boasts $95.7B in revenue & nearly $1T market cap.

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(Credit: Tesla)

Goldman Sachs analysts cut Tesla’s price target to $285 from $295, maintaining a Neutral rating.

The adjustment reflects weaker sales performance across key markets, with Tesla shares trading at $284.70, down nearly 18% in the past week. The analysts pointed to declining sales data in the United States, Europe, and China as the primary driver for the revised outlook. In the U.S., Tesla’s quarter-to-date deliveries through May fell mid-teens year-over-year, according to Wards and Motor Intelligence.

In Europe, April registrations plummeted 50% year-over-year, with May showing a mid-20% decline, per industry data. Meanwhile, the China Passenger Car Association (CPCA) reported a 20% year-over-year drop in May, despite a 5.5% sequential increase from April. Consumer surveys from HundredX and Morning Consult also shaped Goldman Sachs’ lowered delivery and EPS forecasts.

Goldman Sachs now projects Tesla’s second-quarter deliveries to range between 335,000 and 395,000 vehicles, with a base case of 365,000, down from a prior estimate of 410,000 and below the Visible Alpha Consensus of 417,000. Despite these headwinds, Tesla’s financials remain strong, with $95.7 billion in trailing twelve-month revenue and a $917 billion market capitalization.

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Regionally, Tesla’s challenges are stark. In Germany, the German road traffic agency KBA reported Tesla’s May sales dropped 36.2% year-over-year, despite a 44.9% surge in overall electric vehicle registrations. Tesla’s sales fell 29% last month in Spain, according to the ANFAC industry group. These declines highlight shifting consumer preferences amid growing competition.

On a positive note, Tesla is making strategic moves. The Model 3 and Model Y are part of a Chinese government campaign to boost rural sales, potentially mitigating losses. Piper Sandler analysts reiterated an Overweight rating, emphasizing Tesla’s supply chain strategy.

Alexander Potter stated, “Thanks to vertical integration, Tesla is the only car company that is trying to source batteries, at scale, without relying on China.”

As Tesla navigates these delivery challenges, its focus on innovation and supply chain resilience could help it maintain its edge in the electric vehicle market despite short-term hurdles.

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