Tesla, Inc. - Shareholder-Analyst Call - NasdaqGS:TSLA

NasdaqGS:TSLA

The "Unknown Executive" provided several statements during the Tesla, Inc. Shareholder/Analyst Call on September 22, 2020. Here is a detailed list of their comments:

1. Inspiration and Progress:

   • The executive expressed enthusiasm and inspiration regarding the progress made by the Tesla team over a relatively short period of approximately one year.
   • They mentioned having been with Tesla since 2005, a year before Andrew D. Baglino, and highlighted the incredible transformation achieved by the team.

2. Manufacturing Improvements as Accelerator:

   • This executive introduced themselves as Peter and stated that they lead the manufacturing improvement team.
   • They emphasized the importance of manufacturing improvements as the key accelerator for achieving the necessary scale and cost reductions.
   • They mentioned the impressive speed at which the factory was built but noted that further technological improvements in manufacturing are essential.
   • They encouraged people from various industries to consider joining Tesla, highlighting an example of someone from the golf ball manufacturing industry contributing valuable insights.

3. Growth and Hiring:

   • Another unknown executive, identified as Tony, discussed their experience in lithium and cathode materials, stating they had been working in the field for almost 23 years.
   • They mentioned significant growth at Tesla, having joined the company a little over 1.5 years prior.
   • They noted that Tesla is hiring exceptional talent, enabling the company to leverage advanced technologies that the broader industry is still struggling to achieve.

4. Addressing Market Challenges:

   • An unknown executive discussed the challenges of encouraging other companies to adopt sustainable transport and stationary storage batteries.
   • They mentioned that Tesla has made its patents freely available and actively communicates the importance of sustainability to other companies, although these efforts have not always been successful.

5. Cathode Durability and Cost:

   • During a discussion about addressing the cathode durability, cost, and environmental impact, an unknown executive reiterated the importance of solving these issues comprehensively.
   • They highlighted that Tesla is not only focusing on the cathode facility itself but also on processes outside the facility, aiming to remove unnecessary steps and reduce costs.

6. Call to Action:

   • An unknown executive emphasized the magnitude of the sustainability challenge and the need for collective action.

   • They stressed that while Tesla is making progress, the scale of the challenge requires contributions from everyone.

   • They encouraged individuals to consider the impact of their actions on the environment and to contribute to solving sustainability issues.

Alan Prescott, the former Vice President of Legal at Tesla, made several announcements and provided guidance during the shareholder and analyst call on September 22, 2020. Below is a detailed summary of his statements:

Opening Remarks

• Welcome and Introduction:

  • Greeted everyone and welcomed them to Tesla's 2020 Annual Meeting of Stockholders.
  • Introduced himself as Al Prescott, Tesla's Vice President of Legal.

• Meeting Structure:

  • Outlined that the meeting would consist of two parts:
    1. Formal Part: Covering seven items that stockholders have been asked to vote on.
    2. Presentation and Update: Introducing Tesla's Co-Founder and CEO, Elon Musk, who would present a company update and year-end review.
    3. Battery Day Event: Following the stockholder meeting, a separate Battery Day event would commence.

• Acknowledgments:

  • Thanked the Tesla team and the Board, particularly those attending in person.
  • Acknowledged the presence of a representative from PricewaterhouseCoopers, Tesla's independent auditor.

• Introduction of Robyn Denholm:

  • Announced that Robyn Denholm, the Independent Chairwoman of Tesla, would address the meeting remotely.

Voting Process

• Voting Instructions:
  • Instructed stockholders that they could vote now or change their prior vote through the virtual meeting site.
  • Mentioned that ballots and ballot boxes were available for those attending in person.

Closing of Voting

• Announcement of Preliminary Results:
  • Declared that the polls were closed.
  • Announced preliminary approval of the recommendations of Tesla's Board on all agenda items except for the stockholder proposal for an advisory vote regarding simple majority voting in governing documents.
  • Noted that the final results would be filed with the SEC within four business days.

Intermission Before Battery Day

• Intermission Announcement:
  • Indicated that there would be a short break before the Battery Day event began.
  • Advised attendees to stay near their vehicles if they were at the physical location and wished to stretch their legs.

Additional Statements

• Repetition of Opening Remarks:
  • Repeated the opening remarks multiple times, likely due to technical issues or for emphasis.

These statements provide an overview of Alan Prescott's role in facilitating the meeting and ensuring that all necessary procedures were followed.

Robyn M. Denholm, the Independent Chairwoman of Tesla, made the following remarks during the 2020 Annual Meeting of Stockholders:

1. Welcome and Acknowledgment:

   • She thanked Alan Prescott and welcomed everyone to the 2020 Tesla Shareholder Meeting.
   • She acknowledged both in-person attendees and those joining online from various locations around the world.

2. Appreciation for Shareholders:

   • She expressed gratitude to the shareholders for their support over the past year, particularly those who have been with the company since its initial public offering (IPO) in 2010.

3. Company Evolution:

   • She highlighted how Tesla has evolved significantly over the past decade while remaining committed to its mission of accelerating the world's transition to sustainable energy.
   • She noted the rapid pace of development and change within the company over the past 15 months.

4. Employee Recognition:

   • She thanked Tesla employees worldwide for their hard work, execution, and focus on delivering for customers and shareholders, especially during challenging times.

5. Shareholder Feedback:

   • She emphasized the importance of continuous feedback and input from shareholders for the board to effectively perform its duties.
   • She acknowledged the valuable ideas and insights provided by shareholders that influence the board's governance and company practices.

6. Board Diversity and Adaptability:

   • She mentioned the board's pride in its adaptability and the diversity of thought and experience among its members.

7. Acknowledgment of Departing Board Member:

   • On behalf of the board, she thanked Steve Jurvetson for his over a decade of service to Tesla, the board, and shareholders.

8. Introduction of New Board Member:

   • She introduced Hiromichi Mizuno, the newest member of the board, and highlighted his background as the former Chief Investment Officer of the Government Pension Investment Fund (GPIF), the largest pension fund in the world.
   • She handed over to Hiromichi Mizuno to speak briefly.

These remarks set the tone for the meeting and provided context for the company's achievements and direction, as well as recognized key individuals and the contributions of shareholders and employees.

During the Tesla, Inc. Shareholder/Analyst Call on September 22, 2020, Hiromichi Mizuno, the former Independent Director, made the following statements:

• Introduction and Greetings:

  • "Thank you, Robyn. Ladies and gentlemen, welcome to Tesla Annual Shareholders Meeting. It is my real pleasure to virtually meet you, Tesla shareholders, people who believe in Tesla's mission and its growth opportunities."

• Professional Background:

  • "I spent all my career in finance and asset management in Tokyo, New York, London, and the Silicon Valley."
  • "Until recently, I was a Chief Investment Officer of GPIF, $1.5 trillion Japanese public pension fund."

• Investment Philosophy:

  • "And one of my priorities as an investment chief was to promote responsible investments, which aim to make financial returns while pursuing ESG agenda, such as environment and social issues."

• Interest in Tesla:

  • "I believe in the market where ESG is becoming mainstream, purpose- or mission-driven businesses will gain long-term investor support. This is why I was interested in Tesla where our mission is to accelerate the world transition to sustainable energy."

• Commitment to Tesla:

  • "I'm very excited to join the Tesla team on that journey and hope to assist Tesla deliver what investors expect by further enhancing its environmental and social impact."

• Closing Remarks:

  • "Once again, Tesla shareholders, thanks for your support. I'm looking forward to seeing you in person next year. Thank you."

During the Tesla, Inc. Shareholder/Analyst Call on September 22, 2020, Elon R. Musk, Co-Founder, Technoking of Tesla, CEO & Director, made several statements:

1. On the Progress Towards Sustainability:

   • Statement: "The battle is far from over. Less than 1% of the global automotive fleet has been converted to electric, and even maybe 0.1 -- less than 0.1% of stationary storage has been done. So stationary storage has barely begun. Converting the global vehicle fleet to electric has barely begun. So there's still a massive amount of engineering work to be done at Tesla and other companies to accelerate this transition to sustainability."

2. On Profitability and Pricing Strategy:

   • Statement: "Certainly, we will try to get back as much as possible to the customers. It's not like Tesla's profitability is crazy high. Our average profitability for the last 4 quarters is like maybe 1%. So just to be clear, it's not like we're minting money. Our valuation makes it seem like we are, but we're not. So we do want to try to make the price as competitive as we can without like losing money."
   • Statement: "Affordability is key to how we scale, right? Like the demand goes nonlinear as you reduce the price of the car."

3. On Long-Term Goals:

   • Statement: "Long term, we want to try to replace about at least 1% of the total vehicle fleet on earth, which is about 2 billion vehicles. So long term, we want to try to make about 20 million vehicles a year."

4. On Future Products:

   • Statement: "We're confident that, long term, we can design and manufacture a compelling $25,000 electric vehicle. So this has always been our dream from the beginning of the company. I even like wrote a blog piece about it because our first car was an expensive sports car, and then there's like slightly less expensive sedan and then finally sort of, I don't know, mass-market premium, like the Model 3 and Model Y. But really, it's always our goal to try to make an affordable electric car. And I think probably -- like I said, about 3 years from now, we're confident we can make a very compelling $25,000 electric vehicle that's also fully autonomous."

5. On the Model S Plaid:

   • Statement: "We have -- and extreme performance and range and we should probably talk about the Model S Plaid."

6. On Sustainable Rocketry:

   • Statement: "On the rocket front, what we're planning to do is about, about 80% of Starship is liquid oxygen, and we're actually already running a power line to be able to use wind power to create liquid oxygen. So we're making some decent progress on sustainably on the rocket front, but there's just no way to have an electric rocket. And it's important for the future of life and consciousness that we become a multi-planet species, so we've got to keep doing that."

7. On Addressing Supply Chain Challenges:

   • Statement: "I think the -- I'm not sure. I guess we can try to like basically overdo it in cell production and perhaps supply cells to others. But we do see the fundamental constraint as total cell production. That's why we're putting so much effort into making cells and kind of reinventing -- try to reinvent every aspect of cell production from mining the ore to a complete battery pack because it's the fundamental constraint."

8. On Entertainment and Productivity in Autonomous Vehicles:

   • Statement: "I think actually, as we go to a more autonomous future, the importance of entertainment and productivity will become greater and greater. I mean to the degree that -- if you're just basically sitting in your car, the car is fully autonomous and driving somewhere, it's kind of like being in a -- the car is essentially your chauffeur. And then the things that become important are, 'Okay, well, let's have good entertainment.' And if you want to do some productivity stuff, then that actually starts to become much more important because you're no longer spending your attention driving the car."

9. On Potential Partnerships with Music Companies:

   • Statement: "We don't -- we haven't really thought about that much. But I suppose it's probably something we should think about. We will be providing a title on Teslas. So we're providing music -- more music sources that people can choose from and just generally trying to improve the entertainment experience in the cars."

10. On Naming the $25,000 Car:

    • Statement: "Oh, we don't have a name for the $25,000 car yet."

During the Tesla, Inc. Shareholder/Analyst Call on September 22, 2020, Andrew D. Baglino, the Former Senior Vice President of Powertrain & Energy Engineering, made several comments. Here is a detailed list of his statements:

1. On Manufacturing Improvements:

   • "We went through a couple of the manufacturing improvements. And it kind of looks easy when you put together a nice slide deck. But the challenges are like this -- it's super challenging. When you take materials out of the process, when you integrate processes together, you have to do a lot of things at once. And that's like this immense engineering challenge."

2. In Response to Robyn Denholm's Shout Out:

   • "Yes. Thank you. Thank you, Tesla team, totally agree."

3. On Construction and Integration:

   • "Yes. It's definitely an important part of the vertically integrated approach. It's to be able to design the factory around the equipment, in fact, together with the equipment so that you can build the factory at lower cost and more quickly."

4. On Long-Term Vehicle Production Goals:

   • "But I think it's important to point out that when we talked about 3 terawatt hours by 2030, the problem is a 20-terawatt-hour problem. So everybody needs to be accelerating their efforts to accomplish these objectives. Doesn't matter where you are in the value chain. There is a ton to do. You need to rethink from first principles how you do it so that you can scale to meet all of our objectives."

5. On Future Products:

   • "And when you think about the $25,000 price point, you have to consider how much less expensive it is to own an electric vehicle. So actually, it becomes even more affordable at that $25,000 price point."

6. On Material Manufacturing:

   • "It's exciting."
   • "Any existing specification is wrong. Any existing manufacturing method is wrong."
   • "Process equipment, it's wrong. It's just a question of how wrong, quote Elon Musk."
   • "So tell us how we're wrong and how we could do it better so that we can accelerate and improve as fast as possible."

7. On Financial Impact of Factory Improvements:

   • "But affordability is key to how we scale, right?"

8. On Assembly Line Innovations:

   • "Yes. And beyond the electrode, we continue to innovate on every other process step. So let's talk a little bit about assembly, which is next."
   • "The key to a high-performing assembly line is accomplishing processes while in motion, continuous motion. And thinking of the line as a highway, max velocity down the highway, no start and stop, no city driving."
   • "And together with our internal design team that makes this equipment and designs this equipment, we coupled thinking about how to make the best cell. We're thinking about how to make the best equipment so that we could accomplish the fastest parts-per-minute rates on all of these tools."
   • "And through all of that development, we were able to get to the point where we can implement assembly lines, 1 line, 20 gigawatt hours, 7x increase in output per line. And when you're thinking about scalability and pure effort, having 1 line be 7x the capability is just effort multiplying."

9. On Value-Added Steps in Manufacturing:

   • "Only the value-added steps."