teslamotorclub: Official: TSLA Shareholder Meeting 2016 Questions part 1

(note: I know that there was another thread that was recently posted on this topic, but I'm needing to post a new thread with instructions so that we'll get the most popular questions here asked at the shareholder meeting.)

I was informed by Tesla Investor Relations that they will choose some of the most popular questions from this specific thread to ask Elon at the shareholder meeting (note: I was told they'll ask "a few" from this thread, but hopefully if we post some good questions it'll be more). Tesla IR expressed that they don't want to appear like they're influencing the questions that get asked, so they asked for a system to rank the questions that they can defer to (thus the voting system below).

So here are the instructions.

1. Post one question per post. Do NOT post multiple questions in one post or else it will be ignored.

2. Vote using the LIKE button on all the questions you think are pertinent and you'd like to be asked at the shareholder meeting.

Tomorrow afternoon (around 4pm) I'm going to email Tesla IR an update with the top 10-20 questions (determined by # of LIKES) and the # likes per question.

Shoot away, friends.
�

Since the Gigafactory is critical to a successful Model 3 launch, would Tesla please provide updated Gigafactory capacity in terms of GWh's, including how many Model 3's can be built with the pilot phase?
�

Since DC fast charge standards are still evolving and evolving separately in the United States versus Europe and other parts of the world, is it Tesla's vision to make the Tesla Supercharger standard the one standard in North America, replacing J1772 both AC and DC in the long term? Will Tesla vehicles ship with CCS built in support, without an adapter in both Europe and in North America? Or does Tesla see the Tesla connector as a competitive advantage?
�

Regarding Tesla Energy, was the choice to raise prices on power packs a function of higher costs, or higher pricing power due to demand....and can we expect higher profit margins as well?
�

As a Tesla car owner and Powerwall owner (next month), over the past few years I have come to view Tesla as a company whose first products were EVs but whose core business is in energy storage and management systems, whether that means vehicle drivetrains or batteries to power businesses, homes, and potentially off-earth human colonies. Do you see the company that way, and if so how does that influence your long term strategic planning?
�

It is my understanding that (1) the Tesla Factory has upgraded stamping and paint shop capacity to handle up to 500,000 vehicles/year. (2) Model S and Model X assembly is consolidated on Production Line 2 and (3) Model 3 will be assembled on a new Production Line. What are Tesla's expansion plans as far as new robots/equipment and adding new employees to ensure that the Model 3 production line will be able to produce in volume by the end of 2017?
�

In the past, Tesla Motors has had issues with the quality and/or availability of supplier-made components for Model S and Model X.

With Model 3 production now on such an aggressive schedule, what will Tesla do differently to ensure nominal volumes of high-quality components in order to meet its production deadline and units delivered goals?
�

How much revenue could Tesla Energy generate in 2016?
�

Given the newly accelerated production volume timeline to reach maximum nameplate on both Freemont and GIgaFactory- Are there also newly formulated timelines on future factories of each
�

kenliles said: ?

Given the newly accelerated production volume timeline to reach maximum nameplate on both Freemont and GIgaFactory- Are there also newly formulated timelines on future factories of each
Click to expand...

I might add an additional line at the end Ken. ' And what is that timeline?'
I will delete my post if you think inappropriate
�

Assuming an underlying continued 50% year-to-year growth on average and taking in to consideration the accelerated production start and ramp up of Model 3 it seems probable that, even if the Fremont factory could achieve a higher output than the 500.000/year in the NUMMI days, Tesla would need to establish new factories within the next decade, likely before 2025? Are you looking primarily at the US for this, or would investors be more correct to expect for such a facility to be located in Europe or Asia, and if so which continent do you currently believe to be more likely?
�

Stock holders who bought TSLA stock in the years from the IPO up until 2012-2013 bought stock in the electric car manufacturer Tesla Motors. As of today these stock holders are owners of a company that also hosts a growing energy storage component, Tesla Energy, which will be responsible for a yet unknown percentage of revenue going forward. How should investors think about the future of Tesla in this regard? Is it likely that Tesla Energy will bud off from Tesla Motors or should we expect both businesses to remain under the same brand, leadership and financial entity for the foreseeable future?
�

Do you expect the model 3s first produced in Q4 2017 to be hardware equipped for true autonomous driving with only government regulations and software validation holding up implementation?
�

Seeing how the collaboration with Daimler has been wound down and passed out it's not obvious to investors that Tesla have any ongoing collaborations with any other auto makers currently neither with regard to battery packs, drive trains, autonomous drive nor with regard to the Supercharging network. Should investors expect such collaborations going forward? Can you comment on whether there have been approaches or negotiations in the last year and if so, naturally without mentioning names, what the subject has been?
�

[This question pertains to electric cars, not Tesla Energy products]
When should investors expect Tesla to enter the following markets: South Korea, India, Brazil, Russia, Turkey, Thailand, Malaysia and South Africa?
�

Why did you wait and not raise a secondary offering immediately after the Model 3 reveal when the stock price was over $250?
�

How can Tesla reduce SG&A costs (as a % of revenue) while simultaneously expanding service networks to accommodate for the massive increase in Tesla vehicles/owners?
�

Which do you see entering production first: Roadster 2 or a Tesla truck?
�

Does Tesla expect any further cash raises are necessary to achieve the 500,000 vehicle production rate by the end of 2018? If not, at what point will Tesla need to raise additional cash? Will Tesla be able to generate enough cash from the Model 3 to continue annual 50% growth?
�

Is there any chance Tesla will release shop manuals or reinstitute the Ranger program for those hundreds of miles from the nearest service center? This week will become more of an issue as Tesla scales for the Model 3.
�

AlMc said: ?

I might add an additional line at the end Ken. ' And what is that timeline?'
I will delete my post if you think inappropriate
Click to expand...

Can't edit posts in this thread I guess. I like your addendum to my question. Thanks Al
�

Is model X front door's problem fixable?
�

Given that the gigafactory pilot plant is only 14% of its final size, and thus capable of only 7GWh's, what can we expect to see in 2016 that supports shareholder confidence of Tesla's goal of making 500k model 3's by 2018?

Edit: fixed 7GW to 7GWh
�

The challenges we've seen with the Model X ramp up (quality control, supplier issues, etc.) resulted in delayed deliveries and some unsatisfied early adopter customers. The service centers were also suffering heavy burdens due to the repairs needed for early Model X vehicles delivered. Although Model 3 would have a much simpler design and supposedly not be plagued with as many issues as the early Model X, there is a risk of a similar situation happening with Model 3 in late 2017, given the much higher production volume. How is Tesla planning to improve the launch of Model 3 in late 2017/early 2018?
�

With initial cell production (for Tesla Energy products) slated for the end of this year, when do you expect to have all supply agreements signed to meet that goal?
�

Given Mr. Musk is the CEO of two high-profile and rapid growing companies (not to mention other ventures he is taking), does Tesla see the need of installing a COO to improve the efficiency of management within Tesla? CEO bringing a sleep bag adjacent to the production line is commitment to solving current production issues, but as a shareholder I would rather not having the need of this type of "commitment" in the first place.
�

Considering the now shortened Model 3 manufacturing ramp, how will this effect the Tesla energy product ramp/growth while the gigafactory is still under construction? (limited resources for battery production)
�

A lot of us reserved the Model 3, and we are exited about the forward progress deducted by two years. The financing is still an open question, and you recently made a secondary. My question is: Will you need more rise of financing to get to the initial production of the Model 3 in 2017? If so, what do you need, and what would you think is the best way of rising finances?
�

"Do you anticipate Model 3 margins exceeding 10% in the first year of production? "
�

Dave T performed a commendable service in working with Tesla investor relations, resulting in a new thread that quashed my slightly earlier similar thread. However that left out the notice in my original post that implied we were soliciting questions of strategic financial interest to shareholders. The point was to make sure that such questions were asked, and that the limited Q&A time is not taken up by personal agendas or relative trivia.

I remind everyone that this will be a shareholders meeting and not a car owners meeting. Specific concerns about the cars can be taken up in car owner focus groups or with Tesla technical support. Undoubtedly, Elon is already aware of more car issues than any one individual could possibly be concerned about. The limited time available for questions at a shareholders meeting needs to be focused on longer term strategic issues affecting finances and production capabilities.
�

When will we see a step change in the performance of SuperChargers resulting in shorter charging times?
�

It appears that Tesla Energy will be an important part of the Company's future but the magnitude of the opportunity is not clear at this stage to many shareholders. Can you provide a rough estimate of how large a contribution you project Tesla Energy will make to Tesla by 2020 in terms of revenue, either in absolute terms or compared to vehicle sales?
�

Does moving 500,000 deliveries/year forward by two years also move GAAP profitability from 2020 to 2018?
�

My decision to invest in ticker TSLA a few years ago was 95% based on MUSK and 5% TSLA. For shareholders, can Mr Musk assure us that he is in good health, and gets medical check-ups regularly (unexpected news would be unfortunate for MUSK & TSLA. i.e JOBS & AAPL)
�

Hogfighter said: ?

Regarding Tesla Energy, was the choice to raise prices on power packs a function of higher costs, or higher pricing power due to demand....and can we expect higher profit margins as well?
Click to expand...

I like this question and think that answer will be very telling for proper modeling of future profits, but am concerned that it is to blunt to be selected. Please don't take it personal, I just think that Elon publicly acknowledging abandoning the $250/kWh price and explaining why, is very unlikely.

I'd like to suggest the following edit/alternative:

"With the reveal of final pricing for Powerwall and Powerpack products on Tesla Web Site, they seem to have approximately the same gross dollar profit per the kWh of batteries used as an automobile side of the business (Model S/X). Can shareholders expect this uniformity in gross dollar profit per kWh of batteries used in Tesla Energy (TE) and Tesla Automotive (TA) to be maintained in future?"
�

Why Tesla's original plan for GF included 50GWh of packs, but only 35GWh of cells? This seems counter intuitive, since cells from GF are expected to have the lowest cost.
�

I will also be attending the shareholder meeting and would be glad to ask a question on behalf of TMC.
�

Can battery cells for automotive applications and battery cells for Energy Storage applications be manufactured on the same production line at the GF? How long it would take to switch battery cell production over from the Energy Storage to Automotive application?
�

Some questions to consider for the Annual Meeting:

Are the batteries in the Model 3 reveal cars the same technology that will soon be produced in Gigafactory1?

Have safety tests been conducted on the Model 3? If not, when will they be done and when will we learn the results?

When will Phase II construction begin at Gigafactory1?

When can we expect to have a 100 kwh battery and folding middle seats in the Model X??

�

doctoxics said: ?

Some questions to consider for the Annual Meeting:

When will Phase II construction begin at Gigafactory1??
Click to expand...

This question also intrigues me. I'd expect them to announce at the shareholder meeting or perhaps at the grand opening. With the model 3 ramp up looming they better break ground quickly on the next sections of the factory.
�

One more question for the Annual Meeting:

When will an AC-DC inverter be incorporated by Tesla into the powerwall?
�

What are your top three concerns about meeting your production goals for the Model 3?
�

Two part question relating to U.S. states that ban or partially ban Tesla from doing direct sales or service:

A. Mr. Musk, do you feel that Tesla's team dedicated to fighting the various legal and legislative battles in these states is large enough and has sufficient resources to get the job done, and do you expect any victories or setbacks this year with regard to those battles?

B. Given the accelerated production schedule for Model 3, how does Tesla propose to provide service to a huge influx of new customers in the numerous states that ban Tesla from even offering service centers?
�

When will Model Y, the small SUV based on Model 3 platform, be revealed?
�

Does Tesla have any aspirations to get into the commercial trucking industry?
�

Whatever happened to the Roadster range/aerodynamics etc. update? Seemed to fall by the wayside.
�

It's been 2 years since you opened up your patents. I've been describing the Supercharger as "an open standard that any car company can use, but no-one has designed their car to use it yet."

What other manufacturers have decided to use Superchargers, if any?
�

Seems that between a "4th-generation" "even more affordable" car, a truck, and a new roadster, the latter would achieve the least amount of greenhouse gas reduction vs. the first two. Certainly for the USA, the truck might eliminate more GHG than an inexpensive car.

Which would you work on next? The "4th-generation" "even more affordable" car, or the truck, or the new roadster?
�

Will seat options from the Model X like the cooling and perforations make their way to the Model S ? And the premium non-leather material?
�

At the Model 3 reveal Elon stated that the number of Service Centers and Superchargers would double by the end of 2017. Given the acceleration of Model 3 delivery targets, have the plans for more SCs and Superchargers also been accelerated?
�

What is the future of the resale value guarantee program. At the moment, the uptake for this seems very low and the financials show a very unlikely contingent liability. This state of affairs will only get worse if it is offered to model 3 buyers choosing to finance with Tesla.

Are there any plans to limit this to just S and X or better still, terminate this program altogether. I say this as a model 3 reservation holder and also a share holder.
�

When will part 2 of Model 3 reveal occur?
�

With the Model 3 (family) Tesla's original master plan will be complete. We have heard some plans on the M3 family (Roadster 2, Truck, Y), but not much beyond that.

Does Tesla see itself as the manufacturer of sporty, premium vehicles (i.e. the BMW of the 21st century) exclusively and will leave even more mainstream ($15-25k) EVs to others, or can we expect Tesla to evolve into the next GM or VW with multiple brands at multiple price points?
�

mrdoubleb said: ?

With the Model 3 (family) Tesla's original master plan will be complete. We have heard some plans on the M3 family (Roadster 2, Truck, Y), but not much beyond that.

Does Tesla see itself as the manufacturer of sporty, premium vehicles (i.e. the BMW of the 21st century) exclusively and will leave even more mainstream ($15-25k) EVs to others, or can we expect Tesla to evolve into the next GM or VW with multiple brands at multiple price points?
Click to expand...

See post #11, pr0teu5

4th Generation Tesla - "Affordable for all"
�

Fiver said: ?

This question also intrigues me. I'd expect them to announce at the shareholder meeting or perhaps at the grand opening. With the model 3 ramp up looming they better break ground quickly on the next sections of the factory.
Click to expand...

Indeed. Maybe we could open this up a bit more and ask it like this:
Can you give us a high level plan/timeline (year/quarter & GWh or % of full building size?) of the GF1 construction schedule?
�

I will credit @brian45011

Who will be Tesla's partner in China, and when will it be announced?
�

GoTslaGo said: ?

I will credit @brian45011

Who will be Tesla's partner in China, and when will it be announced?
Click to expand...

If they answer the first question, the second question gets answered automatically
�

GoTslaGo said: ?

See post #11, pr0teu5

4th Generation Tesla - "Affordable for all"
Click to expand...

Thanks! Yeah, I've seen that interview, but that was a standalone, vague "eventually g4 and more affordable" comment. I am hoping we can learn something more about where Tesla is going. G4 can be a BMW 1 series competitor or can be the next VW Golf "killer". Will Tesla Motors step out of the premium car brand category in the future e.g. via sub-brands?
�

DaveT said: ?

Does Tesla have any aspirations to get into the commercial trucking industry?
Click to expand...

Dave, maybe opening this one out as well? Something like:
Does Tesla have any aspirations to get into the commercial trucking or city bus industry itself, or would it consider/has it bean approached to provide drivetrains for such projects?
�

It's been said that you're planning on moving to a slighly larger battery cell format, something like 20700-cells. Will you be producing this next-gen format at the Gigafactory when cell production starts up, or is this further out in time?
�

With the benefit of hindsight, would it have made sense to wait for model X ramp to stabilize and produce solid financial results before doing a capital raise?
�

What is the status of Model X ramp?
�

What are your thoughts on the Apple car program?
�

When does the Gigafactory plan to transition from just assembling battery packs to also manufacturing the cells?
�

AlMc said: ?

Do you expect the model 3s first produced in Q4 2017 to be hardware equipped for true autonomous driving with only government regulations and software validation holding up implementation?
Click to expand...

I don't think he will answer that question, maybe if it's phrased like this:
It sounds like Tesla doesn't want to announce full autonomy for M3 because doing that would impact MS-MX sales. Tesla probably needs to wait for sensor prices to drop, before you adding the sensors to the cars. As soon as you know which sensors are required would you consider installing the wiring harness and announcing that fact?

It should be pretty easy to make provisions for the sensor installation when they become available at an affordable price if the wiring harness is in place. As soon as sensor pricing becomes the main obstacle to adding full autonomy hardware providing that possibility to the MS and the MX would be a compelling reason to purchase for potential buyers, instead of a reason to canabalize sales.
�

I wanted to clarify the question in bold.

Johan said: ?

Stock holders who bought TSLA stock in the years from the IPO up until 2012-2013 bought stock in the electric car manufacturer Tesla Motors. As of today these stock holders are owners of a company that also hosts a growing energy storage component, Tesla Energy, which will be responsible for a yet unknown percentage of revenue going forward. How should investors think about the future of Tesla in regard to the total percentage of revenue going forward?

Is it likely that Tesla Energy will bud off from Tesla Motors or should we expect both businesses to remain under the same brand, leadership and financial entity for the foreseeable future?
Click to expand...

IMO the second question is unnecessary (but I don't mind it being asked) because I believe that the synergy between the two entities is so strong that it wouldn't make sense to divide them.
�

How flexible is your supply chain and manufacturing process to shift production within the weekly rate of 2k cars between S and X "at will" based on demand for each model? If demand of one or the other will outgrow forecast, would Tesla require additional lead time or investment to shift production?
�

Is the "Gigafactory As A Product" product line going to broaden to non-battery factories as products?
Best manufacturer of complex objects intent, suggests this. Important for growth and valuation expectations.
�

Third-party Superchargers.
If a business or a chain wishes to capitalize on the obvious draw of fast charging by licensing Supercharger technology, what type of business, what type of access model would Tesla favor and what conditions would be non-negotiable (to ensure a positive experience for the drivers)?
�

techmaven said: ?

Since the Gigafactory is critical to a successful Model 3 launch, would Tesla please provide updated Gigafactory capacity in terms of GWh's including how many Model 3's can be built with the pilot phase?
Click to expand...

Maybe, given the limited opportunities to ask questions, it's better to ask GF related questions at the GF event at the end of July?

I'm more interested in the capacity in GWh's of the pilot phase.

The first phase completion is irrelevant because Tesla has stated repeatedly that they will have sufficient capacity. A better question might be how quickly they expect to be able to complete the additional phases?

They have already stated that a major reason for the cost reductions is the use of custom cell manufacturing equipment. I think it's obvious that they are not only building the custom cell making equipment but they are making , or at least designing the equipment to produce that equipment more quickly and affordably.
�

What progress has been made in establishing the supply chain for the gigafactory? In particular, do you have firm commitments for the price and volume of Lithium and other raw ingredients from suppliers? Are your suppliers domestic (e.g. Nevada) or international and are they established or new entrants?
�

Have you performed tests to assess the long term reliability of the falcon wing doors for the Model X? Is there any evidence you can provide to investors and potential owners that these will not be a long term liability? (example FWDs in laboratory have been opened and closed X number of times without warping or misalignment, etc.)
�

Fallenone said: ?

The challenges we've seen with the Model X ramp up (quality control, supplier issues, etc.) resulted in delayed deliveries and some unsatisfied early adopter customers. The service centers were also suffering heavy burdens due to the repairs needed for early Model X vehicles delivered. Although Model 3 would have a much simpler design and supposedly not be plagued with as many issues as the early Model X, there is a risk of a similar situation happening with Model 3 in late 2017, given the much higher production volume. How is Tesla planning to improve the launch of Model 3 in late 2017/early 2018?
Click to expand...

You should listen to the last conference call. Elon devoted several minutes to answering that question.
�

Does Panasonic compete with Tesla Energy's goods and services?
�

Fallenone said: ?

Given Mr. Musk is the CEO of two high-profile and rapid growing companies (not to mention other ventures he is taking), does Tesla see the need of installing a COO to improve the efficiency of management within Tesla? CEO bringing a sleep bag adjacent to the production line is commitment to solving current production issues, but as a shareholder I would rather not having the need of this type of "commitment" in the first place.
Click to expand...

Why do you want to repeat the same questions that were just asked on the CC?
�

anticitizen13.7 said: ?

In the past, Tesla Motors has had issues with the quality and/or availability of supplier-made components for Model S and Model X.

With Model 3 production now on such an aggressive schedule, what will Tesla do differently to ensure nominal volumes of high-quality components in order to meet its production deadline and units delivered goals?
Click to expand...

Please (everyone)! We have an extremely limited number of opportunities to ask questions.
Listen to the last CC! He explained that exact issue in detail.
�

Fiver said: ?

Considering the now shortened Model 3 manufacturing ramp, how will this effect the Tesla energy product ramp/growth while the gigafactory is still under construction? (limited resources for battery production)
Click to expand...

This was answered on the CC!
�

Is Tesla planning on continuing to use Mobileye technology for future AP functionality, or are you planning on transitioning away to your own compute platform?
�

LargeHamCollider said: ?

"Do you anticipate Model 3 margins exceeding 10% in the first year of production? "
Click to expand...

I like the question but:
What do you anticipate for the M3 margins in the first year of production?
�

MitchJi said: ?

I like the question but:
What do you anticipate for the M3 margins in the first year of production?
Click to expand...

I considered that phraseology but decided it was unlikely to be anwered with specificity.
�

crikescrikes said: ?

My decision to invest in ticker TSLA a few years ago was 95% based on MUSK and 5% TSLA. For shareholders, can Mr Musk assure us that he is in good health, and gets medical check-ups regularly (unexpected news would be unfortunate for MUSK & TSLA. i.e JOBS & AAPL)
Click to expand...

In other words our only concern for your health and welfare is our financial interest?

vgrinshpun said: ?

I like this question and think that answer will be very telling for proper modeling of future profits, but am concerned that it is to blunt to be selected. Please don't take it personal, I just think that Elon publicly acknowledging abandoning the $250/kWh price and explaining why, is very unlikely.

I'd like to suggest the following edit/alternative:

"With the reveal of final pricing for Powerwall and Powerpack products on Tesla Web Site, they seem to have approximately the same gross dollar profit per the kWh of batteries used as an automobile side of the business (Model S/X). Can shareholders expect this uniformity in gross dollar profit per kWh of batteries used in Tesla Energy (TE) and Tesla Automotive (TA) to be maintained in future?"
Click to expand...

Poor question IMO. What makes you think we have any idea of the automotive margins?

vgrinshpun said: ?

Can battery cells forautomotive applications and battery cells for Energy Storage applications be manufactured on the same production line at the GF? How long it would take to switch battery cell production over from the Energy Storage to Automotive application?
Click to expand...

They've already answered the first question. Yes they can. How is the time to switch relevant? How frequently do you think they need to switch?

Dave said:

Does Tesla have any aspirations to get into the commercial trucking industry?
Click to expand...

Probably need to wait until battery costs come down. In the meantime they have a pretty full plate.

GoTslaGo said: ?

When will part 2 of Model 3 reveal occur?
Click to expand...

It will occur after the prices and energy density of batteries, and prices of sensors etc. drop enough that they can be updated on the MS-MX.
�

MitchJi said: ?

You should listen to the last conference call. Elon devoted several minutes to answering that question.
Click to expand...

Really vague and not enough for me. And not enough for most of the investors as stock price tanked after ER. As many of the questions in this thread revolve around this, and I'm sure all of us listened to the ER CC, IMO the majority doesn't think Tesla did a good job on explaining how they are going to achieve what they claimed in the ER CC.
�

MitchJi,

My suggestion to you would be to let others ask their questions freely. There is no need for you to dislike multiple posts, nor is there any benefit from your critique of the posts of others. As DaveT has stated initially, the questions will be selected based on the number of likes. Therefore, your further input isn't necessary. I should also remind you that just because a question has been asked and answered 3 weeks ago, it doesn't mean the answer hasn't changed. Adam Jonas asks the same questions at every conference call. There is much that can be inferred based on how these seemingly redundant questions are addressed.
�

Fallenone said: ?

Really vague and not enough for me. And not enough for most of the investors as stock price tanked after ER. As many of the questions in this thread revolve around this, and I'm sure all of us listened to the ER CC, IMO the majority doesn't think Tesla did a good job on explaining how they are going to achieve what they claimed in the ER CC.
Click to expand...

He answered the question in a very detailed fashion. I don't think he could do a much better job of explaining that. Just because the majority of the listeners, didn't pay attention, don't believe Elon, or are incapable of understanding a pretty thorough explanation doesn't mean that we should ask if again.

sdtslafan said: ?

MitchJi,

My suggestion to you would be to let others ask their questions freely. There is no need for you to dislike multiple posts, nor is there any benefit from your critique of the posts of others. As DaveT has stated initially, the questions will be selected based on the number of likes. Therefore, your further input isn't necessary.

I should also remind you that just because a question has been asked and answered 3 weeks ago, it doesn't mean the answer hasn't changed. Adam Jonas asks the same questions at every conference call. There is much that can be inferred based on how these seemingly redundant questions are addressed.
Click to expand...

My suggestion is to let people provide theirs feedback freely. As Dave said the questions will be chosen based on the feedback of forum members.

Given that we get very few opportunities to ask questions don't you think we should try to maximize the benefit. Do you really think that repeating the same questions is likely to generate the maximum amount of new information.
�

vgrinshpun said: ?

I like this question and think that answer will be very telling for proper modeling of future profits, but am concerned that it is to blunt to be selected. Please don't take it personal, I just think that Elon publicly acknowledging abandoning the $250/kWh price and explaining why, is very unlikely.

I'd like to suggest the following edit/alternative:

"With the reveal of final pricing for Powerwall and Powerpack products on Tesla Web Site, they seem to have approximately the same gross dollar profit per the kWh of batteries used as an automobile side of the business (Model S/X). Can shareholders expect this uniformity in gross dollar profit per kWh of batteries used in Tesla Energy (TE) and Tesla Automotive (TA) to be maintained in future?"
Click to expand...

MitchJi said: ?

Poor question IMO. What makes you think we have any idea of the automotive margins?
Click to expand...

We know current automotive margins and future guidance based on shareholder's letters and ERs.

What makes you think that we have no idea about the automotive margins?
�

MitchJi said: ?

He answered the question in a very detailed fashion. I don't think he could do a much better job of explaining that. Just because the majority of the listeners, didn't pay attention, don't believe Elon, or are incapable of understanding a pretty thorough explanation doesn't mean that we should ask if again.

My suggestion is to let people provide theirs feedback freely. As Dave said the questions will be chosen based on the feedback of forum members.

Given that we get very few opportunities to ask questions don't you think we should try to maximize the benefit. Do you really think that repeating the same questions is likely to generate the maximum amount of new information.
Click to expand...

I guess I disagree with your assessment of some of the questions and I believe others may also disagree...

A few pages ago SBenson asked the question "What is the status of the Model X ramp?" which you "disliked".

In my opinion, this is a question which warrants being asked again and again until the ramp is complete. There is no question more important in the short and intermediate term. Difficulty with the ramp is the sole reason the stock price is $223 and not over $300.
�

Status update on the pack-swapping prototype and any plans to support it for Model 3.
�

Has the Board discussed/begun succession planning work in view of Elon's previously-announced intention to step down after Model 3?
�

What kind of chip is Jim Keller building, and since Tesla is the only car company building such a chip, what kind of competitive advantage can be achieved?
�

Please make the next roadster like the Mazda MX-5 Miata: cheap and fun!
�

@MitchJ: Can you come up with some good questions? You seem to have a pretty good handle on things but instead of altering/suggestion changes to other people's questions it would be most helpful (at least to me) if you posted some good ones yourself. Thanks
�

vgrinshpun said: ?

We know current automotive margins and future guidance based on shareholder's letters and ERs.

What makes you think that we have no idea about the automotive margins?
Click to expand...

As they relate to battery pack margins (in cars and Powerpack and Powerwall). The reason I posted that is because you thought that Tesla's packs cost them $225 per kWh. So you clearly didn't know what their automobile pack costs were.

I think it's clear that they are deliberately hiding those margins in order to conceal their battery pack costs. I am interested in the answer to the original question, which I think is more likely, and more useful than obtaining an answer to your version.
�

DaveT said: ?

I was informed by Tesla Investor Relations that they will choose some of the most popular questions from this specific thread to ask Elon at the shareholder meeting
Click to expand...

Thanks for taking this on.

Would it be possible for you or someone attending the shareholder meeting to note (as a post on this thread) which, if any, of these questions gets asked... and Elon's replies? Thanks!
�

Haxster said: ?

Thanks for taking this on.

Would it be possible for you or someone attending the shareholder meeting to note (as a post on this thread) which, if any, of these questions gets asked... and Elon's replies? Thanks!
Click to expand...

Anything answered and discussed during the meeting will most surely be reported and dissected in detail on this forum, don't worry

Also note that Tesla themselves have had a live stream from the meeting in 2014 and 2015, which can be found on ir.teslamotors.com. I haven't found any such link yet though for 2016, but I'm assuming they will have a live stream this year too?
�

the only aspect of the model 3 that appears to have received a mixed reception rather than an enthusiastic one are the aesthetics of the front of the vehicle. though I think it is probable you could sell a million model 3 per year with the design as is, placing it at the top of sales of all vehicles, would you consider the following option: offer the Model 3 with multiple pairings of front fascia and headlight designs (understandably not necessarily at the earliest stages of it's rollout). that is, the existing design option for those whom it meets their taste, and one or two alternative headlight/fascia pairings for those who have different tastes.

this is no knock on the current design. it is the rare design that meets the taste of the overwhelming majority of people. some people simply like an "aggressive" look, some simply wouldn't buy a vehicle with such a look (and likewise for many aesthetic choices). the simple solution seems to be to let the consumer buy the game changing Model 3 drivetrain and the choice of aesthetic which pleases them.

I'll add that 1) for all the other automakers it takes many many billions of dollars spent on 5 to 10 vehicle models to reach several million vehicle per year volumes, so simply spending the money on multiple fascia/headlight options would allow Tesla to get to millions of volume per year remarkably cheaply, 2) the world's current number one selling vehicle (the Toyota Carolla, at ~1.2 million per year) offers these kinds of multiple versions (though Toyota has decided by market which version is sold rather than individual consumer choice), 3) why give critics of Tesla an opening to conflate a critique of design with the clear accomplishment of the Model 3 drivetrain as they've done with the Toyota Prius, (using the suggestion of a displeasing design as part of the campaign to dismiss the choice of greener vehicles). it's harder to rant about "those #$%* ugly Model 3s everywhere" when there is a version of the vehicle that matches just about all tastes.
�

sdtslafan said: ?

I guess I disagree with your assessment of some of the questions and I believe others may also disagree...

A few pages ago SBenson asked the question "What is the status of the Model X ramp?" which you "disliked".

In my opinion, this is a question which warrants being asked again and again until the ramp is complete. There is no question more important in the short and intermediate term. Difficulty with the ramp is the sole reason the stock price is $223 and not over $300.
Click to expand...

It's fine if you disagree. But it's a pretty big leap from disagreeing with me to telling me to stop giving feedback.

Two reasons for my "dislike " on the X ramp:
There is no option to "disagree", which I have previously requested from the moderators.

IMO it's a complete waste of time to ask that question. The last time they posted numbers they described the state of the X ramp, even though that's not a venue where they normally do that. IMO the chances that they won't cover that in detail prior to receiving that generic question are almost zero.
�

Johan said: ?

Also note that Tesla themselves have had a live stream from the meeting in 2014 and 2015, which can be found on ir.teslamotors.com. I haven't found any such link yet though for 2016, but I'm assuming they will have a live stream this year too?
Click to expand...

Here's the info on the meeting and livestream:

What: Tesla 2016 Annual Meeting

When: Tuesday, May 31, 2016, at 2:00 p.m., Pacific Time

Where: Computer History Museum located at 1401 N. Shoreline Blvd., Mountain View, CA 94043

The meeting will also be livestreamed on www.teslamotors.com/2016shareholdermeeting.
�

SteveG3 said: ?

the only aspect of the model 3 that appears to have received a mixed reception rather than an enthusiastic one are the aesthetics of the front of the vehicle.
Click to expand...

But....The current design will be a boon to the aftermarket grill & bumper companies. I'd bet that some of them already have preliminary designs in the works.
�

snellenr said: ?

Has the Board discussed/begun succession planning work in view of Elon's previously-announced intention to step down after Model 3?
Click to expand...

fwiw, Elon has previously announced that he will take a fresh look at whether being the CEO of two companies makes sense when the Model 3 reaches volume production, he has not said he intends to step down.
�

Johan said: ?

Anything answered and discussed during the meeting will most surely be reported and dissected in detail on this forum, don't worry

Also note that Tesla themselves have had a live stream from the meeting in 2014 and 2015, which can be found on ir.teslamotors.com. I haven't found any such link yet though for 2016, but I'm assuming they will have a live stream this year too?
Click to expand...

Here it is:
2016 Shareholder Meeting | Tesla Motors
�

glad Tesla is taking TMC questions this year, and thanks to DaveT for stepping in as a go-between. wish I'd seen this earlier... DaveT, if possible, please extend the "voting" window.
�

I will acknowledge MitchJi in that when I re-read the CC my question was vaguely answered regarding the accelerated ramp of M3 and how that will affect Tesla Energy growth moving forward at the gigafactory site. "We have a plan for that". No details given though.

I still would like to know when the next phase of the gigafactory is going to break ground. Perhaps they have much greater utilization of existing space so rapid expansion of the factory isn't needed. This drops CapEx and does affect share price. That's why I want to know.
�

AlMc said: ?

@MitchJ: Can you come up with some good questions? You seem to have a pretty good handle on things but instead of altering/suggestion changes to other people's questions it would be most helpful (at least to me) if you posted some good ones yourself. Thanks
Click to expand...

Thanks! Means a lot to me particularly since I've been a jerk this morning. Plan to make two more posts, one with another question (one per post before the deadline), and one with my reasons.

Will you please give your current best estimate of your funding needs for the accelerated M3 ramp? More equity raises? Percentage of funds from MS-MX production and TE?
�

How long do you expect it will take to complete the additional GF phases? How do you plan to fund the expansion?
�

IMO the current gorilla for TSLA investors is the M3 ramp.

IMO this is a slam dunk opportunity, but it will probably be a bumpy ride. For example I think the worst case scenario is something like zero M3's produced in 2017, ~100k by end of Q! 2018, and 300k cars produced in 2018. If you are holding shares that should be hugely positive, but J18 LEAPS could be a disaster.

So I am interested in items that will effect the perception between now and then.

MX production is huge, as that impacts the perception of both funding and production, but I also think that the chances of getting any useful information from a question on that issue are close to zero.

I believe funding and GF are two big issues. Any insight we can get on timing could be beneficial (I think the timing of the steak, not the sizzle is most important now).
�

Two minute warning for the questions thread!
�

Fiver said: ?

I still would like to know when the next phase of the gigafactory is going to break ground. Perhaps they have much greater utilization of existing space so rapid expansion of the factory isn't needed. This drops CapEx and does affect share price. That's why I want to know.
Click to expand...

I don't think that floor space is nearly as expensive as the cell manufacturing equipment, and I don't think it's possible for them increase the utilization to even close to that extent.
�

I just sent the top questions and # votes to Tesla's IR. I've also let them know I'll send an update tomorrow (Tuesday) at 10am PT so I can give you guys some more time voting. (note: I'm not sure if they'll have time to use the updated version tomorrow, but I'll try)

So, keep voting and keep posting. I'll post again when I've sent Tesla IR the final update.
�

Given the rapid acceleration of Climate Change, the COP21 declarations, the proposals by several countries to ban ICE vehicles starting 2025, the demand for Model 3, does Tesla have plans to switch from the steady progress originally specified in the Secret Master Plan, to a plan of producing as many vehicles as fast as possible. This means starting the build of more production facilities and gigafactories ASAP.
�

DaveT said: ?

I just sent the top questions and # votes to Tesla's IR. I've also let them know I'll send an update tomorrow (Tuesday) at 10am PT so I can give you guys some more time voting. (note: I'm not sure if they'll have time to use the updated version tomorrow, but I'll try)

So, keep voting and keep posting. I'll post again when I've sent Tesla IR the final update.
Click to expand...

Thanks Dave...........
�

MitchJi said: ?

I don't think that floor space is nearly as expensive as the cell manufacturing equipment, and I don't think it's possible for them increase the utilization to even close to that extent.
Click to expand...

I guess my point is, if they need a lot more batteries for late 2017, and Tesla Energy is already using a large part of the existing gigafactory, they better break ground quickly to build additional space for the cell production/car battery pack portion of the factory. OR, as I was guessing, perhaps they can use existing space in a much more efficient manner and fit their needs in the existing space for the moment. Expansion will happen, but not as quickly as they originally stated since they can maximize the space already built. This will help going forward as they can build to suit actual ramps and not just "spray and pray". I have a feeling they overestimated the building size need on purpose. Better to have to scale back your construction timeline then to scramble to build more.
�

DaveT said: ?

I just sent the top questions and # votes to Tesla's IR. I've also let them know I'll send an update tomorrow (Tuesday) at 10am PT so I can give you guys some more time voting. (note: I'm not sure if they'll have time to use the updated version tomorrow, but I'll try)

So, keep voting and keep posting. I'll post again when I've sent Tesla IR the final update.
Click to expand...

appreciate it Dave. while they may not have time before the meeting, I think it'd be nice if someone at Tesla reads the whole thread at some point... it's not all that many posts
�

MitchJi said: ?

As they relate to battery pack margins (in cars and Powerpack and Powerwall). The reason I posted that is because you thought that Tesla's packs cost them $225 per kWh. So you clearly didn't know what their automobile pack costs were.

I think it's clear that they are deliberately hiding those margins in order to conceal their battery pack costs. I am interested in the answer to the original question, which I think is more likely, and more useful than obtaining an answer to your version.
Click to expand...

The cost of automotive packs and margin for automotive packs are immaterial to and is not subject of my question. If you are referring to my conclusion about approximate parity in dollar profit per kWh of batteries used in TA vs TE, the underlying calculation does not depend on knowledge of the automotive battery pack cost/margin.

Here is a sample of such calculation:

Model S (future) ASP = $90,000
Model S (future) GM = 30%
Model S (future) GP: $90,000 x 0.3 = $27,000
Model S (future) GP per kWh $27,000 / 90kWh = $300/kWh

PowerPack (future) cost = $250/kWh x 0.7 = $175/kWh
PowerPack (future) price = $470/kWh
Power Pack (future) GP per kwH $470/kWh-$175/kWh = $295/kWh

The approximate parity between the dollar profit per kWh of batteries used in TA vs TE shown above has huge implications for the profitability of the company, as it implies that gross profit for TE and TA can be the same. Since TE operational expenses are much lower than for TA (only incremental R&D, no service centers/stores, etc.) the net profit per kWh of batteries used in TE is potentially significantly higher than for TA.

Given that both Elon and JB indicated that they now see GF output designated for TE as equal to the output of the GF slated for TA, the above means that value of the company is at least double of the one based on future TA profits alone.

All of the above, however, hinges on ability of Tesla to maintain this approximate parity between the gross margins per kWh of batteries used for TE vs TA, hence my original question.
�

"I live in central New York and our nearest service center is four hours drive away. This is suppressing sales; dozens of people have told me they would buy a Tesla if the service center was closer. What is Tesla doing to solve the problem of geographical coverage for service centers?"

Dammit, I guess I didn't get this in before the deadline. Hope someone else asked essentially the same question, since I think it's the only important question which they have any chance of being able to answer.
�

At some point in the not so distant future, will I be able to:

House my autonomous Model 3 at a remote location for charging and servicing via a subscription service AND;

Remotely command my autonomous car to interface with third party services/companies for the delivery of goods/services at a designated time and/or location and then return to the hub when the functions are completed?

�

neroden said: ?

"I live in central New York and our nearest service center is four hours drive away. This is suppressing sales; dozens of people have told me they would buy a Tesla if the service center was closer. What is Tesla doing to solve the problem of geographical coverage for service centers?"

Dammit, I guess I didn't get this in before the deadline. Hope someone else asked essentially the same question, since I think it's the only important question which they have any chance of being able to answer.
Click to expand...

See post #50 (I think), lot's of thumbs ups. Not exactly the same, but basically addressing the question about increasing service centers and superchargers prior to model 3.
�

Many customers, both new customers and long-time owners of multiple Tesla vehicles, have found the company's communication with its customers, and apparent internal communication, to be considerably lacking. This can alienate customers, harm the brand, and lead to operational inefficiencies. As a shareholder, I view this as one of the main weaknesses of the company.
Is the board aware of this issue and can it assure investors that it is taking action to tackle it?
Thank you for all your fantastic work.
�

Flight Risk said: ?

At some point in the not so distant future, will I be able to:

House my autonomous Model 3 at a remote location for charging and servicing via a subscription service AND;

Remotely command my autonomous car to interface with third party services/companies for the delivery of goods/services at a designated time and/or location and then return to the hub when the functions are completed?

Click to expand...

In this future autonomous scenario, it almost sounds like you don't need to actually OWN a car. There would likely be car sharing and delivery services that should meet these needs... and more.
�

(Thank you DaveT for your efforts. Hope these following questions make the cut.)

With the primary concern for stock holders/analysts around capability of production ramp and demand, can you please explain how the Model S and X are now examples of lessons learned (i.e. are you now able to meet production and delivery planned)?
�

What additional steps are being taken to reduce operational costs, minimize cash burn and improve the efficiency of the monies used for Model 3 ramp?
�

teslamotorclub

Thứ Ba, 3 tháng 1, 2017

Official: TSLA Shareholder Meeting 2016 Questions part 1

Không có nhận xét nào:

Đăng nhận xét