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Musk talks about production, pricing and Cybertruck at the company’s annual meeting

The Tesla Annual Meeting (TSLA) went off as usual last night, peppered with comments from CEO Elon Musk on a number of topics including automotive production, supply chain and pricing, and of course the status of the Cybertruck.

A number of proposals were put to a shareholder vote, including management’s desire for a 3-for-1 stock split, which was approved by shareholders. Based on yesterday’s closing price, the new stock price would be around $308.

Musk’s presentation to shareholders began by revealing that the company had just produced its 3 millionth vehicle. Musk also said he was trying to hit a traffic rate of 2 million vehicles by the end of the year.

Elon Musk at Tesla’s 2022 Annual Meeting

Musk also gave his best guess for the future of production. “And the next 10 years? I’d be surprised if it’s not over 100 million in 10 years,” Musk said.

Musk also said the ideal number of factories would be twelve, which means the company still has a long way to go. Currently, it has gigafactories in Fremont, Shanghai, Austin, and Berlin, as well as battery and solar power operations in Nevada and Buffalo, NY.

As for his next factory, Musk hinted that it could be north of the border. After a number of attendees suggested multiple locations, Musk said, “We have a lot of Canada. I’m half Canadian, maybe I should? Musk previously said Tesla was considering locations in North America for its next plant.

Price, supply chain and economics

Musk also gave investors more color on his thoughts on pricing, the supply chain and the economy. Last Friday, Musk tweeted that he sees prices dropping for some components. Musk elaborated on this, saying Tesa gets “a good idea of ​​how the prices of things change over time, because when you’re making millions of cars, you have to buy products months ahead of time. where they are needed”, and from this point of view, he thinks that the country has “passed the peak of inflation”.

Musk continued his predictions, predicting that the US would likely experience a “relatively mild recession”. He added a grain of salt to that claim, however, warning that making predictions about the economy is usually a “recipe for disaster.”

Tesla co-founder and CEO Elon Musk shows off the new battery-powered all-electric Tesla Cybertruck at the Tesla Design Center in Hawthorne, California on November 21, 2019. (Photo by Frederic J. BROWN / AFP) (Photo by FREDERIC J. MARRON/AFP via Getty Images)

Tesla co-founder and CEO Elon Musk shows off the new battery-powered all-electric Tesla Cybertruck at the Tesla Design Center in Hawthorne, California on November 21, 2019. (Photo by Frederic J. BROWN / AFP) (Photo by FREDERIC J. MARRON/AFP via Getty Images)

Speaking of price and inflation, the question arose of the status of Tesla’s Cybertruck pickup, possibly the automaker’s most anticipated vehicle. Musk said the CyberTruck was still slated for production in mid-2023 at Giga Austin, though he warned there were changes.

“Cybertruck pricing, it was unveiled in 2019, and the reservation was $99. A lot has changed since then, so specs and pricing will be different,” Musk said, “I hate to give some kind of bad news, but I think there’s no way I kind of anticipated all the inflation that we’ve seen and the various issues.

Musk didn’t say what specs would change for the Cybertruck.

As for a few odds and ends, Musk said that Tesla AI Day Part 2 is scheduled for September 30, that the FSD (Full Self Driving) beta will hopefully have a mainstream release by then. the end of this year, and that as far as succession plans go, he intends to stay at Tesla for as long as he is useful to the company.

Also at the meeting, board members Ira Ehrenpreis and Kathleen Wilson-Thompson were also re-elected as board directors; however, proposals to shorten the terms of board members to two years from three and to change the board’s vote from supermajority to simple majority failed. Martin Viecha, head of investor relations at Tesla, said that these two proposals were not accepted because less than two-thirds of the shareholders did not vote on these measures, which is a required threshold.

For more on Tesla’s Annual Meeting, a recording of the webcast can be viewed here.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on instagram.

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