Montage: EV

Tesla Annual Meeting: Factories, Cybertruck, US-China, and Spending plans

Written by Cláudio Afonso | | LinkedIn | Twitter

The U.S. automaker Tesla will hold its Annual Shareholder meeting later today (August 4) and retail/ institutional stockholders were able to ask questions and upvote them. The company’s CEO Elon Musk will answer about how Tesla intends to use cash in the near future, the number of factories needed to reach Tesla‘s goal of 20 million vehicles produced per year, and Cybertruck pricing.

In addition, there are also questions about the geopolitical risk between the U.S. and China and Tesla‘s real estate strategy for super chargers and Tesla Restaurant locations across the country.

The most updated question had 5,500 votes representing 1.1 million Tesla shares and regards the intentions of the company to use cash, “How does Tesla intend to utilize cash in the coming few years? Will Tesla increase capex, share buybacks, dividends, or acquisitions?”.

The question was followed by another retail shareholder regarding Tesla’s plan to achieve its annual production goal of 20 million vehicles in terms of infrastructures, “How many factories are necessary to achieve long term target of 20 million vehicles per year?”

The third most voted question — representing nearly 950,000 Tesla shares — regards the highly anticipated Cybertruck and its price and configuration details, “When the Cybertruck pricing is released, will all who ordered before it was taken down be grandfathered in, or have to reconfigure. When will pricing be released?”.

For the fourth question, Elon Musk will be answering about the current geopolitical situation between the U.S. and China that has been highly discussed these last days with the visit of House Speaker Nancy Pelosi to Taiwan earlier this week.

The question received 3,400 upvotes representing over 630,000 Tesla shares and says, “How is Tesla viewing the geopolitical risk between the US and China?”. The fifth one asks about Tesla’s “real estate strategy for super chargers and Tesla restaurant locations across the U.S.?”.

Recently, Tesla announced its Q2 2022 Earnings Results reporting total revenue of $16.9 billion (up 42% year-over-year) and a 14.6% operating margin saying it expects to achieve “50% average annual growth in vehicle deliveries” confirming the previous guidance.

Tesla also detailed the production in each factory adding that it achieved “record production rates across the company”. However, the company warned of “continuation of manufacturing challenges related to shutdowns, global supply chain disruptions, labor shortages and logistics and other complications, which limited our ability to consistently run our factories at full capacity”.

Earlier this week, Hertz reported its second quarter financial results following a conference call with the company’s management team. During the call, Hertz’s CEO said the company has 20,000 cars in the fleet from the 100,000 deal and that deliveries are ongoing. Regarding the maintenance costs, the company said it is saving 50% – 60% with Tesla models compared to its fleet’s ICE vehicles.

Written by Cláudio Afonso | | LinkedIn | Twitter