Tesla CEO Elon Musk visits the construction site of Tesla’s Gigafactory in Grünheide, near Berlin, Germany, August 13, 2021.
Patrick Pouleur | Reuters
Musk joked that “making macroeconomic forecasts is a recipe for disaster,” but despite this, “we are past the peak of inflation,” which will last about 18 months. It estimates that a “relatively mild recession” is likely.
The CEO based his economic analysis on the commodity prices Tesla is being asked to pay for the materials and goods needed to build its electric vehicles.
“If you’re building millions of cars, you have to buy the goods months before you need them, so you have a great deal of insight into where the price of things is going over time. ” he said.
in the Q2 2022Russian war with ukraine The ongoing Covid pandemic in China has also hampered Tesla’s Shanghai factory, exacerbating supply chain disruptions, parts shortages and labor problems across the auto industry.
Musk was also asked how Tesla plans to use its capital over the next few years. The CEO said Tesla will primarily increase capital expenditures and R&D spending “as quickly as possible without wasting it.” He added that depending on what Tesla’s future cash flow looks like, “a kind of buyback is possible.”
Musk, who is also the CEO of SpaceX, said he “didn’t want to commit” to a Tesla stock buyback just yet, saying a force majeure event somewhere could change the equation. He reiterated that if future cash flow looks strong and the world is “relatively stable,” it is “considering share buybacks.”
Overall, Tesla aims to produce 20 million cars a year by 2030, which is a lofty target, and Musk said this would require about a dozen factories, each of which would He said he expects to produce 1.5 to 2 million units a year.
Tesla now operates a vehicle assembly plant in Shanghai. Fremont, California. Austin, Texas. And outside Berlin, Germany. It also produces batteries at a factory in Sparks, Nevada that it jointly operates with Panasonic.
Tesla recently produced its 3 millionth car, Musk said Thursday, and hopes to announce the location of the new factory later this year.
At the same time, Musk revealed Thursday that the company only recycles 50 vehicle battery packs a week in Nevada, with most battery packs in Tesla vehicles still in use today. That’s why I said the number was very low.
At a shareholder meeting, the celebrity CEO said Tesla is moving closer to its goal of “solving autonomy,” offering self-driving cars that can operate as robo-taxis without a driver behind them, among other things it has done in the past. I repeated my promise. Wheel.
He solicited shareholder opinions on where to set up Tesla’s next factory (many shouted “Canada”) and invited Wall Street analysts into a room that appeared to be full of private investors. He pleased his shareholders by saying he understood the company better than any financial expert, including him.
But while Tesla is aiming to have the Cybertruck in production in mid-2023, it will sell it at the same specs and price that was initially given when the company unveiled its experimental pickup in 2019. He repeated that he would not be able to. .
Regarding Cybertruck’s expected higher price, Musk said, “I don’t think there’s any way to predict inflation like we’ve seen before.” Tesla plans to “set up production equipment, tools and everything in the coming months” at its Austin, Texas factory, where a shareholder meeting was held on Thursday.
At the conference, Musk boasted that Tesla and his reusable rocket company SpaceX are two of the places engineering students most want to work today. Tesla received 3 million job applications last year, he said. He also revealed, referring to his two businesses, “We are allowing people to move from one company to another if they wish.” I support it.”
The in-person conference audience was randomly selected, while others listened to an online video live stream. Attendees at the live event threw loud heckles at shareholders who presented proposals that Tesla’s board of directors did not agree to pass.
One shareholder took the mic during a Q&A session and gave up the opportunity to ask Elon Musk a question, instead blaming the media for his treatment of Musk and thanking the CEO for “making the world a better place.” The shareholder also greeted his six-year-old, who he said was watching a business event at home.
Tesla bull and Future Fund managing partner Gary Black asked Musk about whether he would step down from his role as CEO of Tesla. Musk said he thought Tesla would do well, even if it was “abducted by aliens” because there are so many great people in his organization.
He later stressed that he was “not going to leave, just to be clear.”