AGM 2017

Jun 6, 2017

Hi, everyone. We're going to get started. Welcome to Tesla's 2017 Annual Meeting of Stockholders. My name is Todd Marin. I'm Tesla's General Counsel. Following the formal part of the meeting, we'll welcome Elon Musk up onto the stage. In addition, I'd like to introduce several other people who are here with us today. We have our whole Board of Directors in front, along with our CFO, Deepak Ahuja, we have our VP of Investor Relations, Jeff Evenson. There are two parts to today's meeting. First, the formal part of the meeting will cover the 5 items that we've asked stockholders to vote on today. And after the voting, Elon will provide a presentation. At the end of his presentation, we will take the questions that we asked On Twitter yesterday, we got thousands of questions and Elon will answer many of them. Okay. I'm now going to call Tesla's Annual Stockholder Meeting to order. Please refer to the agenda and rules of the meeting that were provided to you today. The time is now something 2:40 p. M. And the polls are now open. We've already received, Over the past few weeks, voting proxies from our stockholders, meaning that almost all of the votes have already been counted, although some of you also vote today and those will be counted as well. As I mentioned previously, if you wish to pick up a ballot, there's a table over there, and you can grab one and then you'll want to hand it to Lisa Brenton from Computershare. Tesla's Board of Directors has appointed Lisa to serve as Inspector of Elections for this meeting. She has taken and signed an oath as Inspector of Computershare has certified that starting on April 20, 2017, the proxy materials Or a notice of Internet availability of the proxy materials were mailed or provided to all stockholders of record as of April 13, 2017. We have a majority of the outstanding shares represented at the meeting. So there is a quorum present and we can proceed with the meeting. The items on the agenda are as follows: Number 1, the election of 3 Class 1 Directors, Elon Musk, Robin Denholm and Steve Jurvetson, to serve for a term of 3 years or until their respective successors are duly elective and qualified. Number 2, a nonbinding advisory vote on the approval of executive compensation number 3, a nonbinding advisory vote on the frequency of executive compensation votes Number 4, to ratify the appointment of PricewaterhouseCoopers as Tesla's independent registered public accounting firm for the fiscal year ending December 31, with 2017. Tesla's Board has recommended that our stockholders vote for each of the Director nominees for the approval of executive compensation, 3 years as the frequency of executive compensation voting and for the ratification of the appointment of our accounting firm. Finally, we've also received a stockholder proposal as described in our proxy statement. Our Board has recommended that our stockholders vote against this proposal. The stockholder proposal is proposed by the Connecticut Retirement Plans and Trust Funds, whose designee, Ayesha Mestagney, is here to present the proposal. Ms. Mestagney, Where are you? There you are. You can come up and you'll have a few minutes to present your proposal. Thank you very much. Mr. Chairman, members of the Board and fellow shareholders, Thank you for the opportunity to speak with you today. My name is Ayesha Mastagny, and I'm a Portfolio Manager in the Corporate Governance Unit of the California State Teachers Retirement System. I'm presenting Proposal 5 on behalf of the Connecticut Retirement Plans and Trust Funds and sponsor of the proposal And Connecticut State Treasurer, Denise Napier. The Connecticut pension plan holds approximately 34,537 shares of Tesla stock. I hereby move the proposal, which asks the Board to take the necessary steps, excluding those steps that must be taken by shareholders To eliminate the classification of Tesla's Board and to require that all directors stand for election annually. Tesla's Board is currently classified, which means that each year only a portion of directors are elected by shareholders. This year, shareholders have the opportunity to vote for 3 of Tesla's 7 directors. Classified Boards hamper the ability of shareholders to hold directors accountable. In our view, annual accountability serves to keep Directors closely focused on the performance of top executives and on increasing Shareholder value. Moreover, academic studies have found that classified boards are associated with lower firm value, Poor pay for performance and greater likelihood of value destroying acquisitions. Classified Boards are increasingly rare, Especially among larger companies, according to the 2017 ISS Board Practices Studies, over 65% of S and P 1500 Companies and almost 90% of S and P 500 Companies elect all directors annually. Tesla's Board has changed little since it went public. Founder Elon Musk's brother, Kimbal Musk, serves on the Board, as do 3 directors with business ties to Elon Musk. Only one of those directors is standing for reelection at today's meeting, which means shareholders' ability to express their views about Board composition and Director relationships that may compromise independence. Tesla claims in its statement in opposition that The Board would impair Tesla's ability to undertake long term initiatives and create shareholder value. Tesla cites No data in support of that assertion and the only data of which we are aware to tell a different story. A 2009 study in the Financial Analyst Journal found that U. S. Public companies with classified boards invested less in research and development and other company specific Capital assets than companies with declassified boards. Even for R and D intensive companies and those in industries Technology played a key role like semiconductors, aircraft and space vehicles, companies with declassified boards invested a significantly higher portion of assets In R and D and created 22% more value for shareholders than companies with classified boards. We urge shareholders to support this proposal. I'd like to remind our stockholders that Tesla's Board has prepared a in opposition to the proposal, and that appears in our proxy statement. All right. Before we wrap up, are there any proxies remaining in the audience that have not been submitted? If So now is the time to submit them in order for them to be counted. If you have one, please raise your hand and we'll have people come and grab them. Try to hold them up high. Thanks. Okay, I don't see any more hands. One hand. One more hand. Can we get one person to come up in front? Okay. I declare that the polls are now closed. As I mentioned earlier, we did receive almost all of the votes before the meeting started. And based on the proxies that we received, I can announce that our shareholders have approved the recommendations of Tesla's Board on all 5 of the agenda items. We will formally announce the results of the voting by filing a Form at 8 ks within 4 business days of today's meeting. That concludes the official part of today's shareholder meeting, which is now adjourned. We can now move on to Ylan's presentation, which I promise you will be more interesting. Well, welcome. I'm glad to see you, too. I always love these shareholder meetings. I mean, I tell people like, during the shareholder meeting, and it's like, man, it always felt like a party. And I love seeing you guys and I was like and they're like, really? That's not like normal shareholder meetings. So When I go through the kind of a high level overview, I think it's been a really great year for Tesla. And I think there's even better years to come. So I'm going to talk about that and then try to answer I think there's 20 questions that we have on The list that was submitted by Twitter, there's certainly some really interesting questions That was submitted. And so we're seeing correlations that were drawn. We couldn't get to them all, but we'll try to get to, I think, the 20 that I think are most significant for the year ahead of us. So really, the one of the key things that happened this year is the beginning of the transition Tesla to a fully integrated sustainable energy company, where you have solar creating the energy, Then the stationary battery pack, the Powerwall and Powerpack storing the energy and then that energy being used in an electric vehicle. Now the great thing about this is it answers all it's a fully contained Energy solution that could scale for the whole world. And I'm going to get into that for a moment, but it's something where You can imagine as far in the future, well, well beyond human civilization, which I hope lasts a really long time, That this is something that would last for really this works. And there I think there are no unanswered questions. Even in the Gigafactory or the Gigafactories that make these products will be powered by sustainable energy. So like I really don't think there's any hole left in the argument, because When we're making electric cars, people would say that, well, they're just they're really coal powered. And there's like the long tail pipe And the type of sale pipe is really over there by the power plant. We're like, yes, but we're going to have sustainable energy generation, too, And then but then you can still have gasoline cars. So you've got electric cars, sustainable energy production and then you got to store that energy because the sun don't shine at night. It's real simple. 1, 2, 3. It has been amazingly difficult to explain this. I'm like, it's only 3 pictures there, man. I mean, come on. So with the solar roof, the solar roof, we're really trying to address At the residential level, I think one of the fundamental inhibitions of adding solar, which is aesthetics. People love their homes. They want their homes to be beautiful. And if you've got a sloped roof home, that means you have to have solar integrated into the roof itself. And so what we created here, I think, is something that's going to be incredibly revolutionary, Well, it's beautiful. In fact, I think it looks better than a normal roof. In doing this, we were trying to find Examples of roofs and it's like, man, take a look at roofs next time you're driving down the road, you're like, woah, they're not good. This is a roof that's going to be better looking than a normal roof. It's going to last practically forever. Like I wanted to have An infinite year warranty, but then the finance department said, well, that's difficult to account for. So I said, well, okay, it's Infinite ore when your house falls down, whichever comes first. Those get the best it requires. But basically, it's going to last forever. You think of like a cathedral with stained glass windows. Those stained glass windows are about the only thing and the stone walls, the only thing that's lasted over Half millennium. So great looking, durable, Affordable, when you consider the cost of a roof and the cost of electricity from the utility, This is going to vary quite a lot by region. So it depends on what property taxes are, what the cost Financing is and what the cost of power from the utility is, but we're confident that this is going to be Something that is either actually makes you money or is close to breakeven for most of the country, which I think is really, really profound. Now there's still a very important role for the traditional kind of flat panel solar. And that's still going to be a very important part of our business going forward, because whenever you've got a flat roof situation, which is most commercial installations are flat roofs, And or if you've got a residence that's got a flat roof and it's not visible from the street, then there's no need to go with the solar glass tiles because aesthetics are no longer a factor, you can't see it. So let's I just want to emphasize that traditional solar is still going to be a very important part of the business going forward. Also, if somebody's got a brand new roof that they probably don't want to replace the roof right away and it's still going to make sense to have retrofit solar. And these are the what you're seeing cycling through are the kind of the first four. And we're starting off with 2, which is The black slate and the textured slate, and then hopefully by early next year, we'll be in production with the Spanish tile and the French slate versions, and there will be more over time. But the overarching goal here Is to have a set of products or set of roof products where if you were driving through a neighborhood and you looked at the roofs, you said, wow, I really like the way those roofs look. Rooms don't get a lot of attention, but they we want something We want to create it's like if you can imagine the future, and what it looks like, that that's something that you want. And obviously, that needs to be paired with stationary storage with a battery pack. The battery packs are important for a number of reasons and they because the solar power obviously peaks during the middle of the day, then it's low at dawn and dusk, and it's not there at night. So you need something that is load leveling the power. So it's storing it when it is high power generation, releasing it when you have low power generation. And this is going to be important for Grid stability as solar scales. So there's more and more solar. It's more and more critically important that there be batteries To load level the grid and enable a full transition to sustainable energy. So that and then it has a great advantage, which I think it's the kind of thing where you only really notice it when The power is out. Like there are frequent power outages, because a substation went down or a bird flew into wires Or in many parts of the world, power is intermittent, and they have to have generators which run on very expensive diesel fuel. But even here in California, we know we're due for the big one. It's been saving up. So there's going to be earthquakes in California. There'll be hurricanes in the Southeast, there'll be ice storms in the Northeast, there's floods, there's all sorts of things that cause Electricity interruption, and we're very dependent on electronic devices. So people might say, well, it's not a problem, 911. Well, how are you going to do that if your phone is dead? Okay, that's real hard. And if all your devices Are gone because of the power outage. We're so dependent on devices these days that it's actually a significant safety and security concern. The nice thing about having the Powerwall, particularly the Powerwall 2, is that it's like having an uninterruptible power supply for your house. Alexis, it's like buying insurance. It's sort of like the kind of thing that when you need it, you really need it. And so I think that's an important advantage that is Sometimes overlooked. And then we've got the PowerPack side. This is for big utility Scale installations as well as, I should point out, a very important market, which is commercial and industrial. So We've done some of the biggest in fact, maybe I think the biggest still the biggest battery installation in the world in Southern California. And that took over from what was a natural gas peaker, and that's an operation, Stonewall. We've got a huge system in Hawaii in Kauai, which is responsible for 20% of Kauai's peak power generation. And then we've got A system in American Samoa, which powers the whole island. It's totally off grid. And I think That's a great example of what the potential because in the limits, a continent is a big island, Okay. This is a big island, but it's called a continent. If you can make if you take an island And have that completely run on solar and batteries, you can do that with a continent. So the potential there, I think, is incredibly exciting. I will say now with the latest version of the phone app integrated the Powerwall and Solar with the Tesla app. So now you can see on your in terms of list of products, no longer says just vehicles, it says products. So now you can see the Powerwall is on there And solar, so you can see the status of your Powerwall. You can see what your whether your solar system It's functioning well, how much energy you're producing. It will show you how much energy you're producing, how much is being stored, how much is being consumed And then how that relates to the car. And so you have a really well integrated A system that combines solar, storage and your vehicle. And I think there'll be a few other things in the future that maybe people aren't expecting as well. So you can see your energy usage during the day. So you can tell if maybe you should be turning off certain devices or Reprogramming your air conditioning system, and it gives you a good idea of like Where are you using power that you may not even realize that you're using? And if you are drawing energy from the grid, it will tell you how much energy you drew from the grid and how much you powered yourself. So I think it's And this functionality is just going to get better and better. This is what's working today. So this is not speculative. This is the current app that does this. From the standpoint of the customer experience, we're going to make a significant increase the number of retail stores we have around the world, we think we've really barely touched the surface of what's possible on the retail side. If you just do a back of the envelope analysis and say, in the U. S, there's about 330,000,000 people. How many stores per person should we have? Or how many people per store? It seems like probably Over time, we'd want at least one store for every 500,000 people. So that's 6.60 stores right there. In China, it would be thousands of stores or throughout the world, there will be several 1,000 stores. So that's Our plan is to keep expanding the retail store footprint to be able to cover anyone who could want to buy our product. Service has gotten better and better, so we now have fast lanes in service. So the wait times for service have gone down dramatically. It's obviously very important for the Model 3. We're also adding a lot more service centers in anticipation of Model 3 production. And this year, we will double the number of Tesla Superchargers in the world. So double 1 year over year. And I think next year, probably At least 50% increase, maybe double again next year. This gives you just a sense for How many superchargers there are in the world? It's worth noting, this is actually the only High speed charging network in the world. There isn't even a second one. I asked our head of our supercharging program, okay, well, what's the 2nd best High speed charging network in the world. He said, well, there's this one place in the Netherlands, but it's I think it's only like 60 or 70 kilowatts, but there's only one of it. It usually doesn't work. Okay. All right. All right. Anyway, we're just going to keep growing it as fast as we can to make sure people can go wherever they want, whenever they want, with convenience, keep upgrading the capability of the supercharger Systems so it can charge things faster. We're going to start adding amenities to the supercharger stations. So the really big stations, we'll start adding amenities And just make it so that you when you do a long distance trip in a Tesla, you love the experience. That's the overarching goal. And then autopilot, it's definitely been a tough Tough slog transitioning from the mobile iVision chip to Tesla's internal vision system, but I think We're almost there in terms of exceeding the ability of the Hardware 1 cars. So Hardware 2 cars have All of the hardware necessary for full autonomy, 8 cameras, 12 of the most advanced ultrasonic sonar sensors, A radar, a very good GPS and IMU and Everything necessary to go full autonomy, it's really about upgrading the software over time. So I think with the next release of software, which is maybe as soon as next week, We will finally exceed the experience of the Hardware 1 cars, and then it's going to advance very rapidly from there. And our goal remains being able to drive autonomously from a parking lot in California to a parking lot in New York without touching a control at any point along the way. So the Gigafactory is going quite well. That's the latest picture of the status. Obviously, the ultimate footprint will be quite a bit bigger than what you see even there. And it's we believe it will be within a few years, have a capacity equal to All other lithium ion factory factories in the world combined in one building. We've added everything in the U. S, China, Europe And Korea everywhere else, this one factory will output more than all of them combined. So it's really The sheer scale of this is difficult to appreciate unless you're there in person. It is just staggeringly enormous. That allows us to achieve high economies of scale, so that with very high production rates, We're maximizing economies of scale, asking us to get the lowest cost per kilowatt hour in the world, but at the same time, have the most advanced batteries. So a combination of the best technology at the lowest cost, I think, is just a very Obviously, a great position to be in. And I think it's a fundamental part of Tesla's strategy. There's just no one else Who's attempting anything as far as we're not even attempting anything on the scale. And so I think that puts us in a very Competitive position to sustain the growth of the company for several years to come. And then over time, there will be several Gigafactories. I think eventually 10 or 12, maybe 20, I don't know, a lot. So It's like a giant machine. So we keep refining this and productizing it and then building Gigafactories around the world. Important thing that we're making progress on is factory safety. So far this year, Tesla is 32% below the Automotive Industry Injury Rate, and that trend is better and better with each passing month. So I think we're on track to be less than half the entry rates of the automotive industry and by far better than any other U. S. Factory, which I think is something that's extremely important. And then we've got some future products. So the semi truck, we're going to unveil at the end of September, And I think that's very exciting. A lot of people don't think you can do a heavy duty long range truck That's electric, but we're confident that this is this can be done. So we'll be showing off a working prototype not too long from now, end of September. And we've shown it to a number of the Organizations that buy heavy duty trucking, and they all love it. They just want to know how many can they buy and how soon. It's like cool. And we're involving them in And we're getting them closely involved in the design process. So the biggest customers of the heavy duty Tezza Semi are helping ensure that it is specified to their needs. So it's not a mystery. They already Know that it's going to meet their needs because they help decide what they've told us what those needs are. So it's going to Really just be a question of scaling volume to make as many as we can. And then Model Y, I'm really excited about Model Y. It's there's been some criticism like we should sort of Derived from the Model 3 platform, but I think actually we made a mistake in trying to derive the Model X from the Model S platform. It would have been better to just design an SUV the way an SUV should be designed, design a sedan the way a sedan should be Designed. Otherwise, you're just trying to shoehorn something and that doesn't make sense. Also, there are a number of, I think, really major manufacturing improvements that can be done that allow us To pull the car in a way that the cars never been built before, The capital expenditures, I think, would be substantially less. I'm confident that we could drop the CapEx By a factor of 2 between Model 3 and Model Y, which I think is a really big deal and accelerate its readiness Despite the new technologies. So we're aiming for that to hit the roads in 2019 approximately. And probably the demand for the Model Y will exceed the demand for the Model 3. So there's a few other things I haven't mentioned here. I just like really recommend showing up for the semi truck unveiling. Maybe there's a little more than we're saying here. Maybe, it could be. Who knows? Model 3 configurator, so expect that configurator to go live towards the end of next month when we deliver the 1st production Model 3. So yes, we're definitely on track to deliver the 1st production Model 3 next month. That's going to be really exciting. And then we'll have the configurator go live right at that point. Now I should say that the We've kept the initial configurations for Model 3 very simple. This is critical to achieving a rapid production ramp. Big mistake we made with the X, which is primarily it's my responsibility, way too much complexity right at the beginning. That was very foolish. So when you think of it like going back to the launch of the Model S, Model S only had one configuration at start of production. And now it had one configuration because that's all we could do. Not because we were really clever. And then Model X, Hubris extraordinaire, we actually we added I mean, it is like a Faberge Egg of Clubs. I think it's a big it's really an amazing product, but it's it has way too many cool things in it That should have really been rolled in with version 2, version 3. That would have been the sensible way to do it. We got overconfident And created something great that probably will never be made again and perhaps should not be. But it is an amazing car. And as we keep refining the software in the Model X, it's just going to get better and better. So initially, the Model 3 configurators, it's kind of going to be like what color do you want and what size wheels do you want. That's basically going to be the configurator. And then we'll show what other configure what other versions are coming later, as soon as we get Configuration 1, right? But they and with a time line associated with each configuration. For example, we were going to start off with dual motor, But that's like, wait a second, we just doubled the probability of something going wrong if we get 2 motors because they're 2 different motor architectures. One motor is optimized for highway travel and one is optimized for stop and go traffic, Which is great for maximizing your mileage in city and maximizing your highway your mileage on freeway and having incredible acceleration, but it's too much complexity right off the bat. So it will just be Single motor to begin with, and then we'll have the dual motor config. If we're lucky, end of this year, more likely early next. So I wouldn't worry too much about the configurator, because you only have to decide, like, what color do you want and what size of wheels. That's basically it for initial production. In terms of how many factories are in the works, We're really giving serious consideration to 3 factory locations right now, but we're going to try to hold our Keep the powder dry until we're confident of the locations and the timing. But like I said, ultimately, probably there's at least 10 of these worldwide and Maybe as much as $20,000,000 How long of a wait will it be for customers wanting Model 3 placed a 1 ks deposit. This will be a long wait. There's a lot of people that have ordered the car. I'm guessing if you put a deposit down on Model 3 now, it's probably well, it's going to be over a year End of next year before you get it, something like that. On the other hand, we There are more and more deposits every week. So if you want it, then definitely put down the deposit. Line isn't getting shorter. We're doing our best to do this ramp, but we've got to do the ramp right. We've got to make sure the quality is good, the safety is good, and it's crazy hard to make cars. I'll tell you, there's like 10,000 unique items, and it will move as fast as the slowest item. And then even beyond the stuff that's internal Tesla, you say, look, okay, who's the least lucky supplier we have out there? Or what supplier cares the least or whatever the case may be? And then you look at our supply chain, and it's like, wow, our supply chain is like covering Earth. So like what are the odds that there's going to be some portions of your events somewhere on Earth? Like pretty high. So one of the things I want to do with Model Y is also just simplify the supply chain so that we're not inheriting Poor's Mature Risk from Earth, because Earth is big and something wrong something bad happens on Earth at any given point in time. So we must stop inheriting Porsche Mjur risk from all of us. You can solve this by buffering parts, But if the parts aren't made to begin with, you can't buffer them. So yes. Are there times placed to offer battery upgrades? Yes. So we do offer that already. I wouldn't recommend doing a battery upgrade until the existing battery that you have has a fair bit of life on it. And there are some limitations because there can be a pretty big weight difference between the lightest battery pack and the heaviest. So We can't go from lightest to heaviest, but we definitely can upgrade battery packs really in every car, And we will offer that and make that easier with each passing year. Somebody's got a new battery pack, it's not going to make financial sense to upgrade just the battery pack. Better to sell the car that you've got And then buy a different one, either new or used. And I should mention, we're going to Really give more prominence to used Teslas on our website, but we're not going to call them pre owned. That is like a bogus name. So both with BS, it was used. Okay, everyone knows that. Who are we filling here? So the used Tesla section of the website is going to get a lot more attention. And particularly if the car is 4 years old and it's got a lot of mileage, you could buy a Model S for as much as a Model 3. It's like, well, okay, maybe somebody wants to buy a Model S for $35,000 $40,000 And they can have that today. And then when the Model 3 comes in, they can switch out to the Model 3, if they want. Model S is it's still going to be the yes, because more expensive car, bigger, there's more room for bells and whistles. It's still going to be our premium car. But anyway, so used sales is going to get a lot more attention on our website and yes. In terms of what changes are being made to address safety, So this is something we're driving really hard on every week, being with the safety team every week, so what can we do to make it better. And like I said, I think we're well on our way to having an entry rate that is Half that of the rest of the auto industry and way better than any other car company. A key change that was actually already made late last year was having 3 shifts instead of 2. So the a lot of the injuries would happen when somebody who's had like a 10, 11 hour day, you just get tired, and then That's when you tend to get injured. So having 3 shifts made a huge difference to injury rate And then redesigning a lot of the processes to be a lot more ergonomic and improving the fixtures and tooling. There's a lot of detailed work that needs to go into avoiding repetitive stress injuries and But I'm really proud of what the safety team is doing, and I think we're making huge progress towards being the safest automotive company in the world. Well, I already talked about the semi. So I mean, timing wise, I'm guessing that we probably reach scale production on the semi in about 2 years, Maybe 18 months, but probably about 2 years. And before you answer this, There will be continued improvements to the speed of supercharging. Yes. Okay. Somewhat randomly, AAA of Southern California Hugely increased Tesla insurance premiums. There is a simple solution, change your own insurance provider. From the study we did, The average rate for insuring a Model S to Model X is about 5% lower Then other premium vehicles and if you actually pick the right insurance provider, it can be 20% or 30% lower. But it's just it's really hard to For death or serious injury in an S or an X, you really have it's like hard to do that, okay. We literally had 1 person go down, I don't know, like a 300 foot Cliffravene and then walked out of the car. So the and then with Automatic emergency braking, which is getting better and better as the software improves, that actually helps a great deal with pedestrians and cyclists. And then because the Model S and the X have such a long crumple zone, that's 2 to 3 times longer than Conventional automotive car that's got a big engine steel block in there. That means you actually are helping even like even the car that you hit, The combined crumple zone of both cars is substantially greater than if 2 gasoline cars hit. So it's not just You're helping safety with the safety is not just good for people in the car, it actually helps if you do have a collision with another And then we the hood is designed to be like a sort of trampoline. Now it's not the well, the funnest trampoline, But again, there's no big engine block that you're going to hit. So you can sort of if you do hit a pedestrian, It's not a good time, but the essentially the spring effect of having a herd that doesn't Impact of a big steel engine block is really makes a big difference to the lives of a pedestrian if one is hit. So, yes. Well, we offer a package deal. Well, I guess effectively, when you consider the installation cost of the roof, the Powerwall And the home connector, technically it's not a charger, it's a connector. If that's done at the same time, Then you could save $2,000 to $3,000 on installation costs of all things combined. So Just by doing it at the same time, you automatically get a reduction in costs because it's just fundamentally more efficient Then if one team visits, then if 3 teams visit. And then Yes, but we haven't currently considered a package deal, but yes, maybe it's something to do in the future. So no decision on this, but like I said, actually it will cost less if you do it at the same time. In terms of new directors, so we've been interviewing a number of independent directors to add to the Tesla Board. I think we're quite close to making decision, and I think we'll add at least 2 or maybe 3 new directors, and I think from a broad range of Backgrounds and Industries, so I expect we'll probably make that announcement in the next month or 2 at most. But I think there are really some amazing people that will be joining the Board. Audio system insight. Yes, I actually was just talking about that with the team today. I think there's Quite a bit of room to improve the audio codec in the Sx and obviously the 3, Because it is a Tesla system, so we can just reprogram it to make it better with software. And I feel pretty confident that just with an over the update, we can actually make the audio system sound quite a bit better. But it's I think it's a good system and yes, it's going to get better. Yes, we're going to have a huge increase in the number of service centers around the world. And for any places that are not We have a mobile repair expansion, the Tesla Rangers, will cover essentially anywhere on earth. For Model 3 rollout in states that don't allow direct sales, as you may be aware, we get a lot of pushback from the dealer groups. And I mean, they say that their mode of sales is superior. I'm like, okay, well then why would you want a legal Lock, if people love it so much. So it doesn't make sense. So but the answer is actually you can order a Tesla in any state in the country. So there's no limitation on ordering a car, And we can service anywhere in the country. So actually, all you need to do is go on the website or the car, And that's it. We can't do sales in stores in every state, but we actually sell in every state. And There are Teslas in every state in the United States. So all you need to do is just like order it like you're ordering something here from Amazon or Apple or whatever. Just go on the website and Order it and it shows up. It's like that. And then we'll take care of service. Really? Some of these questions, by the way, I'm seeing as you have seen them. What do I do for relaxing? Well, It may not shock you, but sports is not like a thing that I do a lot of. Do you listen to music, particularly in the car? And in terms of the music Selection, I think there's going to be some exciting announcements in terms of how the music selection. I think it's very hard to find good Playlists or good matching algorithms. We have something that works okay right now, but I think it could work really, Really great. Yes. So there'll be a few announcement on that later this year. I think this is going to be is going to be like the music you want to listen to. Yes, I think well, at least I want to listen to it more than anything. We'll see. I do watch movies. I do love movies, and I used to watch a lot of them less these days because of work. I mean, I don't want to spend time on this question because I don't know if it's super relevant to the as a company, but We saw the Wonder Woman movie with my kids this weekend. That was great. Usually, it's work more though. It's usually work more. So, yes, hang out with my kids, see friends, film all stuff, Sometimes go crazy on Twitter. It's sort of There's a little red wine, vintage record player, some Ambien. Magic, magic happens. Are you expecting a new plant to be built for the Model Y? Yes, we are. I think the existing Gigafactory will probably supply the back in fact, will supply the battery pack and Drive trains and motor and power electronics for the Model Y, but the Model Y vehicle plant will be in a new plant, essentially a new Gigafactory that We're going to figure out the exact location of, but there's just no room at Fremont. We are bursting at the seams. I'll say like if I ask you like what's their number one complaint, it's parking. It's like, okay, we like practically had a riot the other day for parking. And I'm like, sorry, guys, Yes, what happens, we had a bunch of contractors come on-site to install equipment for The Model 3 and we hadn't counted on the fact that there'd be 500 extra people that showed up to install massive amounts of Okay. The parking lot was full, so therefore, it's like conservation of Mass here, conservation of volume, that's 500 people who can't park. Anyway, it's crazy how much parking lot is a pain in the butt. So we're bursting the seams at Fremont, so there's just no way we could do model wide Fremont, so it's going to have to be somewhere else. And I think, pretty much it's going to be really focused on, obviously, S and X and then ramping up Model 3. I think we'll even have to transfer some of the things we do at Fremont to the Gigafactory just to allow for Model 3 expansion. So how do I allocate my time across certain companies? Yes, so I think it's very important to appreciate that Tweet frequency does not is there's no correlation with what I actually do for a work basis. It's like I might tweet a lot about like The Boring Company, which is basically a hobby. It's like not I wouldn't even call that a real company at this point. It's like Three people, some interns and some part time people. So we're making pretty good progress for all that. But like that's just kind of like a fun thing to do, where there's like no pressure, everyone thinks you're going to fail. So it's like, okay, Yes. I'm going to go up from there. So, like slow expectations are great. So but the boring company is maybe 2% of my time. Neuralink is 3% to 5% of my I'm opening eyes, maybe a couple of percent. And then 90% plus is Divided between SpaceX and Tesla. So depending upon and it's probably slightly more Tesla. Tesla is like a drama magnet, so it's like so you have to deal with Tesla drama. So but on average, it's probably about half of my time is between SpaceX and Tesla. And there's a lot to be gained, knowing how rockets are done and how cars are done. In rockets, you have to work on very advanced materials, make things super light. And being able to translate some of that to automotive, I think, has been very helpful. So it does do some good there. But I just want to emphasize very clearly, 90% plus of my time is divided between SpaceX and Tesla, And the remaining less than 10% is everything else. Like I said, I'm literally seeing these questions as you are seeing them. So like me. So in terms of how will we have experts install Solar Roofs around the U. S, we're that's actually where a huge amount of the value of the SolarCity acquisition comes in because they've installed solar on roofs almost throughout the country. And there are thousands of different roof types and every jurisdiction is different, every county, every city. It's a really thorny, complicated, unsexy problem, but the solid state installation team Has solved that. And so we're going to be training the solar installation team to do the solar roofs, the solar Glass tiles. And the prices will come down as we're able to achieve economies of scale and optimize the installation process. It's very important that we be able to kit the entire roof before and then put that in a van and And install on-site very quickly, so the amount of work that's required on-site is minimal. It should just be like Lego, like just Yes, but it's kitted exactly, and you go and you do like a crazy efficient roofing installation. So but economies of scale and making that installation process efficient are key to having the prices come down. Okay. So most millennials living in apartments rather than homes, what do we can we do to make it easier to own and charge a Tesla without a garage? So we're establishing supercharging locations, a lot more in city supercharging locations, And there'll be a little lower power, but in between a high power supercharger, which is optimized long distance trips, but more power than would typically be found in a home garage. So wherever the car is being parked, At the apartment or work or somewhere in between, we're going to Make sure that there's a place to charge your car, even if you live in an apartment. One of the key things for apartments is To manage the power, so if you've got a lot of cars parked in your garage and you have to design the system to handle A hypothetical case where all cars are drawing maximum power at the same time, then you need a crazy amount of power. So it's important to have a system that Load levels of power, so that they don't have to build a new substation just to supply the apartment building. And so that's one of the things that's process of being implemented. But no question we need to solve this problem for apartments, not Is there an electric plane in Tesla's future? Well, we got a lot of fish to fry. There are no plans right now to have an electric plane. We have a long way to go to handle terrestrial transport. And it's not inconceivable that we're doing an electric plane, but I do think that we're not quite there in terms of the energy density of Batteries for an electric plane, I think the kind of minimum that you'd want is about 400 watt hours per kilogram and even that would require some pretty Essential innovation in the airframe and the way that you build an airplane in order to have decent range with at 400 watt hours per kilogram. At 500, it's such become quite compelling, but I don't know, I think we're maybe 4 or 5 years away from having 500 watt hours per kilogram, something like that, maybe half a decade, yes, in volume production. Of course. Now I'm not saying we're going to add a nuclear fusion reactor. I'm just saying it fits. So All right. Thanks, everyone, for coming. It's great to see you and look forward to seeing you next year. Thank you.