On Tuesday, Tesla (NASDAQ 🙂 organized its annual shareholders' meeting in California. Shareholders could ask CEO Elon Musk about the company's problems and hear what the proposed solutions might be. It was also an opportunity for the new Tesla president, Robyn Denholm, to speak for the first time. In addition, there was a vote on governance issues.
Here are our top four takeaways from the meeting:
1. Which question problem?
One of the most urgent issues for Tesla in recent months has been questions about the demand for his cars. Currently, Tesla's SEC filings show that the company has manufactured approximately 23,000 additional cars than it has sold, indicating that there may be a problem with demand.
After years of efforts and billions invested in infrastructure, any doubt about the market demand for Tesla cars is bound by stock pressure. Tuesday Musk unambiguously focused on these concerns:
"I want to be clear, there is no question problem. Absolutely not."
Of course, investors have already learned that they cannot use Musk & # 39; s word as a gospel.
Although stock rationing was 3% after the trade meeting outside the hours on Tuesday, shares fell 3.6% during yesterday's session, as concerns about Tesla persist.
Whether there really is a demand problem is inevitably reflected in the company's quarterly sales figures, so regardless of Musk's guarantees, more details will come to light when the company's next profit report is released in late July
Since the shares of Tesla are often volatile, considerable volatility is expected once the facts are disclosed
2. Mining company next?
According to Musk, sourcing the components such as nickel, copper, and lithium needed for the production of lithium-ion battery cells – the key to powering Tesla's electric vehicles – is now one of the biggest challenges facing the company unable to scale the operation. further. Tesla did indeed start producing batteries at the Nevada plant, partly to help meet the production targets
But electric vehicle batteries need minerals, so the next logical step is, at least in the spirit of Musk, to expand into mineral mining. On Tuesday, Musk claimed that once battery production had started, "[Tesla] might come into mining, I don't know, maybe just a little."
Tesla already has a tradition of vertical integration: it manufactures, operates and repairs all of its cars itself. The financial benefits of such an effort are not yet clear, but it fits in with the business thinking of controlling all logistics related to its products. As such, it is a strange feeling for Musk to hold on to this mandate by planning to control another link in Tesla's supply chain.
3. Reliable time frames for autonomous driving characteristics?
At the end of April, Tesla held its & # 39; Autonomy Investor Day & # 39 ;. On that occasion, Tesla revealed some of its ambitions with regard to self-driving Tesla vehicles, as well as robotaxis.
According to Musk, Tesla owners will be able to enjoy autonomous supervision at the end of 2019. This would mean that the cars & # 39; s will be self-driving, but the human driver will still have to pay attention and & # 39; supervise & # 39; on the position. Autonomy without supervision will be operational "sometime next year", pending regulatory approval.
During Tuesday's Q&A session, Musk was also asked about the advanced summon feature, which could be used to call & # 39; & # 39 ;, from a parking space to where the driver waited for it. In November 2018, this was something that Musk said would be available within six weeks. The questioner urged Musk not to adhere to the timetable. Musk & # 39; s answer: "Sometimes [I’m] a little optimistic about time frames. It's about time you know."
Musk also clarified his earlier comments about Tesla with a fleet of one million robot axis by 2020. Now, he says what he meant if all Tesla owners were to upgrade their on-board computers, the company would have a million cars. produced with self-propelled capabilities by that time.
4. Less power for Tesla & # 39; s most important stakeholder?
Among the proposals that were voted on Tuesday, there was a suggestion to shorten the board member period to two years instead of three, and to approve business measures by a simple majority, instead of the current need for a super majority (two-thirds of all outstanding shares).
Both changes were proposed after Musk & # 39; s last run-in with the SEC. Currently, Musk owns approximately 20% of the outstanding shares of Tesla, giving him almost veto power over every decision.
Both proposals were approved by 99% of shareholders entitled to vote, but the required supermajority was not achieved, so both proposals were officially rejected. It is unclear whether Musk participated in the vote, but the outcome means that shareholders still have no way to reduce Musk's voting power should they feel the need.
Conclusion
Musk generally had a good result and his words were received by an enthusiastic crowd, even though the share has lost 37% of its value since the beginning of the year. That is vintage Tesla and Musk. The words are often very encouraging, but the numbers and deadlines do not meet the hype. Investors will have to wait until the company's Q2 report can evaluate where the company is going next.
