Musk's definitive statement
At Tesla's annual shareholder meeting in Austin, Texas, CEO Elon Musk acknowledged the company's vulnerability to the global economy and provided insights into the challenges it may face over the next 12 months.
Rumor Clarification and Musk's Commitment
Addressing market rumors, Musk assured shareholders that he has no plans to step down as CEO of Tesla. His unequivocal statement, "It ain't so," provided clarity and instilled confidence in the leadership stability of the company.
New Models and Roadster Production
Musk unveils Tesla's future product lineup, including two new mass-market models. Additionally, production of the eagerly awaited Roadster electric sports car begins next year, building anticipation among shareholders.
Advertising Strategy and Missed Margin Target
In light of a dynamic market, Musk unveiled Tesla's venture into advertising. This strategic response addresses increased competition and economic obstacles. While Q1 price cuts affected Tesla's margin target, Musk remains determined to overcome these challenges.
Addressing Key-Person Risk and Shareholder Votes
Investors voted against publishing a report on "Key-Person Risk" that aimed to identify key individuals and establish succession plans. This decision reflects confidence in Tesla's existing leadership structure and its ability to navigate leadership transitions effectively.
Future Production Targets and Ethical Practices
Musk envisions Tesla's grand plans: 250K Cybertrucks yearly, as per demand. He hinted at two mass-market models in the works, but no specifics yet. Musk stressed ethical values, vowing a third-party audit to eradicate child labor in cobalt mines, showcasing Tesla's responsible sourcing.
Shareholder Votes and Re-Election
Shareholders voted to re-elect Elon Musk and Chair Robyn Denholm, showing support for the board's recommendations. Despite ISS's concerns about Denholm's oversight of Tesla shares used as collateral for loans, shareholders trust her to fulfill her responsibilities effectively.
Tesla's Stock Performance
Tesla's stock ended the day at $166.52, remaining unchanged, but it saw a 0.6% increase in after-hours trading. Despite this, the stock has dropped about 60% from its November 2021 peak due to tough market conditions and heightened competition for the company.