Tesla shareholders' meeting approves Musk's $56 billion compensation, Musk says "launching more satellites": robots will make trillions for Tesla in the future every year

Highlights of Tesla Shareholders' Meeting:

• Tesla shareholders approved CEO Elon Musk's $56 billion compensation package;
• Re-elected two board members: Elon Musk's brother Kimbal Musk and James Murdoch, son of media tycoon Rupert Murdoch;
• Cybertruck's weekly delivery volume reached a record 1,300 units, requiring production of different versions for China and the EU;
• Tesla is accelerating the production of the electric semi-truck, Semi;
• Three new products are set to be released in the future, one possibly being a low-cost Tesla to be launched in 2025, another being a robotaxi service, and the third possibly a commercial vehicle or small truck;
• Musk stated that Tesla must make its vehicles "affordable to the average person";
• Tesla's robot, Optimus, is expected to bring in huge profits for the company, with over 1,000 or even several thousand Optimus robots working at Tesla starting next year;
• In terms of AI, Musk mentioned that in the real world, Tesla's AI is ahead of Meta, Google, and OpenAI;
• Musk envisions Tesla in the future to operate like Airbnb or Uber, allowing owners to add their vehicles to an autonomous driving fleet through an app to earn money when not in use.

Tesla's 2024 Annual Shareholders' Meeting was held in Austin, Texas, USA on Thursday. The meeting attracted over 1 million viewers watching live. Following the vote, Tesla shareholders approved CEO Elon Musk's $56 billion compensation package and supported Tesla's relocation of its headquarters from Delaware to Texas. Musk also outlined Tesla's vision, stating that the Cybertruck's weekly production has exceeded 1,300 units and that the production of the Semi truck will be accelerated, with three new products set to be released in the future.

Support for Compensation Plan and Headquarters Relocation

This compensation plan was revoked by a Delaware court five months ago, stating that the plan was improperly granted by the board of directors due to a lack of independence. Although shareholders voted in favor of this compensation plan, the vote results will not overturn the court's ruling. Musk had already indicated on X the day before the shareholders' meeting that this compensation plan would be approved. Despite opposition from major investors Glass Lewis and ISS, the high approval rate signifies a significant victory for Musk and the board.

Nevertheless, Tesla's CEO may still face a long legal battle and potential new lawsuits. Analysts believe that shareholder approval of the compensation is both a recognition of Musk's tenure and an acknowledgment by investors that they are unwilling to let the company's future be at risk. In January of this year, Musk threatened that if he did not receive enough voting control, he would transfer the development of AI and robot products out of Tesla, essentially leveraging shareholders to approve the 2018 compensation plan At the shareholders' meeting, a series of resolutions were passed, including one proposed by Bausch to move Tesla's registration from Delaware to Texas, where Tesla's largest factory in the United States is located. Another resolution of great interest was the re-election of two board members: Elon Musk's brother Kimbal Musk and James Murdoch, the son of media tycoon Rupert Murdoch.

Musk: Future car owners can make money with reliable autonomous driving

After the voting results were announced, Musk took the stage to deliver a speech. He first thanked the shareholders, "Wow, I really love you guys," and then emphasized, "I am a person who can deliver results. This is ultimately the most important thing." He also said that the compensation plan does not allow him to quit halfway, "This is not what I want to do."

Musk then shared his views on Tesla's future vision. Musk stated that the future of Tesla is exciting. "We are not just opening a new chapter for Tesla, we are writing a new book."

He expressed his hope that in the future, Tesla will allow car owners to make money through autonomous driving by adding their cars to a fleet through an app when not in use, similar to Airbnb or Uber. "You can add or remove vehicles from the fleet at any time. For example, if you are going out for a week, just tap on your Tesla app, and your car will be added... making money for you while you are away."

Cybertruck delivery volume reaches 1,300 vehicles per week, with three new products to be released

Regarding existing products, Musk mentioned that the number of Tesla vehicles in operation will exceed 7 million by the end of this year. He also stated that the latest autonomous driving hardware product will be released in approximately 18 months.

Meanwhile, the Cybertruck's weekly delivery volume has reached a record-breaking 1,300 vehicles. "The Cybertruck is truly unique. If you really want to know if something is cool... show it to a child," Musk said. This may not be the best way to design a car. Musk also added that its electrical architecture features innovative technology, which is crucial for future electric vehicle design - better technology should lead to better vehicle performance and lower costs. Additionally, Tesla needs to produce different versions of the Cybertruck for China and the EU.

He also mentioned that former U.S. President Trump is a fan of the Cybertruck, "He would suddenly call me." Musk told him that the U.S. leads in electric vehicles and added that many of Trump's friends drive Teslas. "He is a super fan of the Cybertruck," Musk said.

Musk stated that Tesla is accelerating the production of the electric semi-truck, Semi. He said, "The economic benefits of electric semi-trucks far outweigh diesel trucks. This is basically a no-brainer choice." Musk informed shareholders that operating diesel trucks for transportation companies would result in losses compared to Tesla's electric semi-truck Regarding new products, Musk displayed a slide containing three hidden vehicles. Musk introduced that one might be a low-priced Tesla to be launched in 2025, another might be a Robotaxi for robot rental, and another might be a commercial vehicle or a small truck. "When will the veil be lifted on these products? Stay tuned."

Musk stated that Tesla must make it "affordable" for ordinary people. "For most people, whether they want a Tesla is not the question at all. They do want a Tesla. They just don't have enough money to buy one. So we have to make it affordable."

Robots will significantly increase Tesla's profits, Tesla AI is in a leading position

Regarding the Tesla robot Optimus, Musk believes that Optimus will bring huge profits to the company. He mentioned that the valuation of Optimus might have been overlooked, as Tesla has the capability to produce approximately 1 billion Optimus robots per year. Musk stated that the price of Optimus will be lower than that of cars, and if Tesla has a 10% market share and each robot is priced at $20,000, Tesla could earn $1 trillion in profits annually when mass-producing them.

There are already two Optimus robots in use at the Fremont factory, and starting next year, Tesla will have over 1,000 or even several thousand Optimus robots working at Tesla. Based on these indicators, Musk suggested that Tesla could become a company worth more than 10 times the current most valuable company. Currently, Apple and Microsoft have a combined market value of about $3.3 trillion, meaning Musk hinted that Tesla's future value could exceed $33 trillion.

He mentioned that in the future, "almost everyone" will have robots that can perform household chores such as taking care of children and working in factories. "I think the ratio of robots to humans in the future may be at least two to one... one to one is certain," he said.

In terms of AI, Musk stated that in the real world, Tesla's AI is ahead of Meta, Google, and OpenAI. Regarding AI chips, Musk explicitly refused to use chips from other companies. He also mentioned Apple and Nvidia, saying, "No company's (AI) chip is more suitable to be placed in our cars than the chips inside our cars."

Tesla's stock price rose 2.9% in regular trading on Thursday, closing at $182.47, with little change in after-hours trading. Tesla's stock price is still down 27% this year.