Everyone. We're going to get started. Welcome to Tesla's 2017 Annual Meeting of Stockholders. My name is Todd Maron. 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 up in front, along with our CFO, Deepak Ahuja. We have our VP of Investor Relations, Jeff Evanson. There are two parts to today's meeting. First, the formal part of the meeting will cover the five items that we've asked stockholders to vote on today. After the voting, Elon will provide a presentation. At the end of his presentation, we will take the questions that we asked for on Twitter yesterday. We got thousands of questions, 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., the polls are now open. We've already received, over the past few weeks, voting proxies from our stockholders, meaning that almost all the votes have already been counted, although some of you also vote today, those will be counted as well. As I mentioned previously, if you wish to pick up a ballot, there's a table over there, you can grab one, 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's taken and signed an oath as Inspector of Election.
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, there's a quorum present, we can proceed with the meeting. The items on the agenda are as follows. Number 1, the election of three Class I directors, Elon Musk, Robyn Denholm, Steve Jurvetson, to serve for a term of three years or until their respective successors are duly elected and qualified. Number 2, a non-binding advisory vote on the approval of executive compensation. Number 3, a non-binding 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, 2017. Tesla's board has recommended that our stockholders vote for each of the director nominees for the approval of executive compensation, three years as the frequency of executive compensation voting, 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, Aeisha Mastagni, is here to present the proposal. Ms. Mastagni, where are you? Here you are. You can come up, 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 Aeisha Mastagni, and I'm a portfolio manager in the corporate governance unit of the California State Teachers' Retirement System. I am presenting proposal number five on behalf of the Connecticut Retirement Plans and Trust Funds and sponsor of the proposal and Connecticut State Treasurer Denise Nappier. 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 three of Tesla's seven 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 U.S. Board Practices Study, over 65% of S&P 1,500 companies and almost 90% of S&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 three directors with business ties to Elon Musk.
Only one of those directors is standing for re-election 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 and opposition that declassifying 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 Analysts 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&D-intensive companies and those in industries where technology played a key role, like semiconductors, aircraft, and space vehicles, companies with declassified boards invested a significantly higher portion of assets in R&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 statement in opposition to the proposal. 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's 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 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.
Based on the proxies that we received, I can announce that our shareholders have approved the recommendations of Tesla's board on all five of the agenda items. We will formally announce the results of the voting by filing a Form 8-K within four 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 Elon'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 tell people, "Yeah, I'm doing this shareholder meeting," and it's like, man, it always felt like a party. I love seeing you guys, and they're like, "Really? That's not like normal shareholder meetings." I'm going to go through the high-level overview. I think it's been a really great year for Tesla, and I think there's even better years to come. 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 were submitted via Twitter. There's certainly some really interesting questions that were submitted, and some interesting 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.
Really, one of the key things that happened this year is the beginning of the transition of 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. The great thing about this is it's a fully contained energy solution that could scale for the whole world, and I'll get into that for a moment. It's something where you can imagine as far in the future, well beyond human civilization, which I hope lasts a really long time. This works, and I think there are no unanswered questions. Even the Gigafactory or the Gigafactories that make these products will be powered by sustainable energy.
I really don't think there's any hole left in the argument, because when we were making electric cars, people would say that, "Well, they're really coal powered, and there's the long tailpipe, and the root type tailpipe's really over there by the power plant." We're like, "Yeah, but we're going to have sustainable energy generation, too." You can't still have gasoline cars. You could have electric cars, sustainable energy production, and then you've got to store that energy because the sun don't shine at night. Real simple. One, two, three. It has been amazingly difficult to explain this. I'm like, there's only three pictures there, man. I mean, come on. With 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. If you've got a sloped roof home, that means you have to have solar integrated into the roof itself. What we created here, I think is something that's going to be incredibly revolutionary, where 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, "Whoa, 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.
I wanted to have an infinite year warranty, the finance department said, "Well, that's difficult to account for." I said, "Well, okay, it's infinite or when your house falls down, whichever comes first." You all get the message, of course. Basically, it's going to last forever. You think of it 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 a millennium. 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. It depends on what property taxes are, what the cost of financing is, and what the cost of power from the utility is.
We're confident that this is going to be something that either actually makes you money or is close to breakeven for most of the country, which I think is really profound. Now, there's still a very important role for the traditional kind of flat panel solar. That's still going to be a very important part of our business going forward. Whenever you've got a flat roof situation, which is most commercial installations are flat roofs, 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 Solar Glass Tiles because aesthetics are no longer a factor. You can't see it. I just want to emphasize that traditional solar is still going to be a very important part of the business going forward.
If somebody's got a brand-new roof that they probably don't want to replace the roof right away, it's still going to make sense to have retrofit solar. What you're seeing cycling through are the kind of the first four. We're starting off with two, which is the black slate and the textured slate. Then, hopefully by early next year, we'll be in production with the Spanish tile and the French slate versions, there will be more over time.
The overarching goal here is to have a set of products or a set of roof products where if you were driving through a neighborhood and you looked at the roofs, you say, like, "Wow, I really like the way those roofs look." Roofs don't get a lot of attention, but 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. That needs to be paired with stationary storage with a battery pack. The battery packs are important for a number of reasons, because the solar power obviously peaks during the middle of the day, then it's low at dawn or dusk, it's not there at night. You need something that is load-leveling the power. It's storing it when there's high power generation, releasing it when you have low power generation.
This is going to be important for grid stability as solar scales. As 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. Then it has a great advantage, which I think it's the kind of thing where you only really notice it when the power's out. 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. Even here in California, we know we're due for the big one, but it's been saving up. 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. People might say, "Well, it's not a problem. I'll call 911." Well, how are you going to do that if your phone is dead? Okay, that's real hard. If all your devices are gone because of a 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. Like I said, it's like buying insurance. It's sort of like the kind of thing that when you need it, you really need it. I think that's an important advantage that is sometimes overlooked. 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. We've done some of the biggest, in fact, maybe I think still the biggest, battery installation in the world in Southern California. That took over from what was a natural gas peaker, and that's in operation, it's doing well. Then we've got a huge system in Hawaii, in Kauai, which is responsible for 20% of Kauai's peak power generation. We've got a system in American Samoa, which powers the whole island. It's totally off-grid. I think that's a great example of the potential because in the limit a continent is a big island. Okay? It's a big island, but it's called a continent.
If you take an island and have that completely run on solar and batteries, you can do that with a continent. The potential there, I think, is incredibly exciting. We've also now, with the latest version of the phone app, integrated the Powerwall and solar with the Tesla app. Now you can see in Tesla's list of products, no longer says just vehicles, it says products, now you can see the Powerwall is on there, and solar. You can see the status of your Powerwall. You can see whether your solar system is functioning well, how much energy you're producing. It'll 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. You have a really well-integrated system that combines solar storage and your vehicle.
I think there'll be a few other things in the future that maybe people aren't expecting as well. 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. It gives you a good idea of where you're using power that you may not even realize that you're using. If you are drawing energy from the grid, it'll tell you how much energy you drew from the grid and how much you powered yourself. This functionality is just going to get better and better. This is what's working today. 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 in 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 million 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 half million people. That's 660 stores right there. In China, it would be thousands of stores or throughout the world it'll be several thousand stores. 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. We now have fast lanes in service. The wait times for service have gone down dramatically. Service is very important for the Model 3.
We're also adding a lot more service centers in anticipation of Model 3 production. This year we will double the number of Tesla Superchargers in the world. Double what year-over-year. 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 the head of our Supercharger program, "Okay, well, what's the second-best high-speed charging network in the world?" He said, "Well, there's this one place in the Netherlands, but 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 system so it can charge things faster. We're going to start adding amenities to the Supercharger stations. To the really big stations, we'll start adding amenities, and just make it so that when you do a long-distance trip in a Tesla, you love the experience. That's the overarching goal. Autopilot. It's definitely been a tough slog transitioning from the Mobileye vision chip to Tesla's internal vision system. I think we're almost there in terms of exceeding the ability of the Hardware 1 cars. The Hardware 2 cars have all of the hardware necessary for full autonomy.
Eight cameras, 12 of the most advanced ultrasonic sonar sensors, a radar, a very good GPS, an IMU, and everything necessary to go full autonomy. It's really about upgrading the software over time. 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. It's going to advance very rapidly from there. 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. 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.
We believe it'll be within a few years, have a capacity equal to all other lithium-ion battery factories in the world combined in one building. If you add up everything in the U.S., China, Europe, and Korea, everywhere else, this one factory will output more than all of them combined. 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, enabling us to get the lowest cost per kilowatt hour in the world, but at the same time, have the most advanced batteries. The combination of the best technology at the lowest cost, I think, is obviously a great position to be in. 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 know, even attempting anything on this scale. I think that puts us in a very strong competitive position to sustain the growth of the company for several years to come. Over time, there will be several Gigafactories. I think eventually, 10 or 12, maybe 20, I don't know, a lot. It's like a giant machine. We'll keep refining this and productizing it, and then building Gigafactories around the world. An 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.
I think we're on track to be less than half the injury rate of the automotive industry, and by far better than any other U.S. factory, which I think is something that's extremely important. We've got some future products. 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 can be done. We'll be showing off a working prototype not too long from now, end of September. 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. We're involving them in. Thank you.
We're getting them closely involved in the design process. The biggest customers of the heavy-duty Tesla Semi are helping ensure that it is specified to their needs. It's not a mystery. They already know that it's going to meet their needs because they helped decide what. They've told us what those needs are. It's going to really just be a question of scaling volume to make as many as we can. Model Y, I'm really excited about Model Y. There's been some criticism, like we should sort of derive from the Model 3 platform. I think actually we made a mistake in trying to derive the Model X from the Model S platform. It would've 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 in 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 build a car in a way that 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 two between Model 3 and Model Y, which I think is a really big deal, and accelerate its readiness despite the new technologies. We're aiming for that to hit the roads in 2019 approximately. Probably the demand for the Model Y will exceed the demand for the Model 3. There's a few other things I haven't mentioned here. I've got to. I just really recommend showing up for the Semi truck unveiling. Maybe there's a little more than we're saying here. Maybe.
Maybe. Could be. Who knows? Model 3 configurator. Expect that configurator to go live towards the end of next month when we deliver the first production Model 3. Yeah, we're definitely on track to deliver the first production Model 3 next month. That's going to be real exciting. Then we'll have the configurator go live right at that point. I should say that 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 Model X, which was primarily my responsibility, way too much complexity right at the beginning. That was very foolish. When you think of it, going back to the launch of the Model S, Model S only had one configuration at start of production. It had one configuration because that's all we could do.
Not because we were really clever. Then Model X, hubris extraordinaire. We added. It is like a Fabergé egg of cars. I think it's really an amazing product, but 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. 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. 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.
Then we'll show what other versions are coming later, as soon as we get configuration 1 right, with a timeline associated with each configuration. For example, we were going to start off with dual motor, that's like, wait a second, we just doubled the probability of something going wrong if we get two motors, because they're two 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 mileage on freeway and having incredible acceleration. It's too much complexity right off the bat, so it'll just be single motor to begin with, then we'll have the dual motor config, if we're lucky, toward end of this year, more likely early next.
I wouldn't worry too much about the configurator, because you're only have to decide what color do you want and what size 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 three factory locations right now, we're going to try to keep the powder dry until we're confident of the locations and the timing. Like I said, ultimately, probably there's at least 10 of these worldwide, and maybe as much as 20. How long of a wait will it be for customers wanting Model 3 who haven't placed a $1K 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 going to be over a year, end of next year, before you get it. Something like that. On the other hand, there are more and more deposits every week. If you want it, definitely put down the deposit. The line isn't getting shorter. We're doing our best to do this ramp, we've got to do the ramp right. We've got to make sure the quality is good, the safety is good. It's crazy hard to make cars. I tell you, there's like 10,000 unique items, and it will move as fast as the slowest item. Even beyond the stuff that's internal to Tesla, you say, okay, who's the least lucky supplier we have out there? What supplier cares the least? Whatever the case may be.
You look at our supply chain and it's like, wow, our supply chain is covering Earth. What are the odds that there's going to be some force majeure events somewhere on Earth? Pretty high. One of the things I want to do with Model Y is also just simplify the supply chain so that we're not inheriting force majeure risk from Earth, because Earth is big and something bad happens on Earth at any given point in time. We must stop inheriting force majeure risk from all over Earth. You can solve this by buffering parts, if the parts aren't made to begin with, you can't buffer them. Yeah. Are there plans in place to offer battery upgrades? Yeah. 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. There are some limitations because there can be a pretty big weight difference between the lightest battery pack and the heaviest. We can't go from lightest to heaviest. We definitely can upgrade battery packs really in every car. We will offer that and make that easier with each passing year. If 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 buy a different one, either new or used. I should mention, we're going to really give more prominence to used Teslas on our website. We're not going to call them pre-owned. That is a bogus name. That's so both BS.
It was used. Okay, everyone knows that. Who are we fooling here? The used Tesla section of the website is going to get a lot more attention. Particularly if the car is four 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, they can have that today. When the Model 3 comes in, they can switch out to the Model 3 if they want. Model S is still going to be the because it's a more expensive car, bigger, there's more room for bells and whistles. It's still going to be our premium car. Anyway, used Teslas are going to get a lot more attention on our website.
In terms of what changes are being made to address safety, this is something we're driving really hard on every week, meeting with the safety team every week to say, what can we do to make it better? Like I said, I think we're well on our way to having an injury 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 three shifts instead of two. A lot of the injuries would happen when somebody had a 10, 11-hour day and just get tired, then that's when you tend to get injured. Having three shifts made a huge difference to injury rate, and then redesigning a lot of 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. I'm really proud of what the safety team's doing, and I think we're making huge progress towards being the safest automotive company in the world. 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 two years. Maybe 18 months, but probably about two years. I've already answered this, though. There will be continued improvements to the speed of Supercharging, yeah. Okay. Somewhat randomly, AAA of Southern California hugely increased Tesla insurance premiums. There is a simple solution. Change your insurance provider. From the study we did, the average rate for insuring a Model S or Model X is about 5% lower than other premium vehicles.
If you actually pick the right insurance provider, it can be 20% or 30% lower. It's really hard. For death or serious injury in an S or an X, you really. It's hard to do that, okay? We literally had one person go down a 300-foot cliff/ravine, and they walked out of the car. With automatic emergency braking, which is getting better and better as the software improves, that actually helps a great deal with pedestrians and cyclists. Because the Model S and the X have such a long crumple zone that's two to three times longer than a conventional automotive car that's got a big engine steel block in there, it means you actually are helping even the car that you hit, the combined crumple zone of both cars is substantially greater than if two gasoline cars hit.
The safety is not just good for people in the car, it actually helps if you do have a collision with another car. The hood is designed to be like a sort of trampoline. It's not the funnest trampoline but again, there's no big engine block that you're going to hit. If you do hit a pedestrian, it's not a good time, but essentially the spring effect of having a hood that doesn't impact a big steel engine block really makes a big difference to the lives of a pedestrian if one is hit. Yeah. Will we offer a package deal? 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, you could save $2,000-$3,000 on installation costs of all things combined. Just by doing it at the same time, you automatically get a reduction in costs because it's just fundamentally more efficient than if one team visits than if three teams visit. We haven't currently considered a package deal, but maybe it's something to do in the future. 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, we've been interviewing a number of independent directors to add to the Tesla board, I think we're quite close to making a decision, I think we will add at least two, maybe three new directors. I think from a broad range of backgrounds and industries.
I expect we'll probably make that announcement in the next month or two at most. I think they're really some amazing people that'll be joining the board. Audio system insight. 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, we can just reprogram it to make it better with software. I feel pretty confident that just with an over-the-air update, we can actually make the audio system sound quite a bit better. I think it's a good system, it's going to get better. We're going to have a huge increase in the number of service centers around the world.
For any places that are not covered by a service center, we have our 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. They say that their mode of sales is superior. I'm like, okay, why would you want a legal block if people love it so much? It doesn't make sense. The answer is actually, you can order a Tesla in any state in the country. There's no limitation on ordering a car, we can service anywhere in the country. Actually, all you need to do is go on the website, order the car, that's it.
We can't do sales in stores in every state, we actually sell in every state, there are Teslas in every state in the U.S. All you need to do is just order it like you're ordering something from Amazon or Apple or whatever. Just go on the website, order it shows up. It's like that. We take care of service. Really? Some of these questions, by the way, I'm seeing as you are seeing them. What do I do for relaxing? It may not shock you, sports is not like a thing that I do a lot of. I do listen to music, particularly in the car. In terms of the music selection, I think there's going to be some exciting announcements in terms of 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 great. Yeah. There'll be an announcement on that later this year. I think this is going to be the music you want to listen to. I think, well, at least I want to listen to it more than any of you. Yeah, 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 don't want to spend a ton of time on this question because I don't have a super relevant to Tesla as a company, but I went and saw the Wonder Woman movie with my kids this weekend. That was great. Usually, it's work more, though. It's usually work more.
Yeah, hang out with my kids, see friends, normal stuff. Sometimes go crazy on Twitter. You know, 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?" Yeah, we are. I think the existing Gigafactory will probably supply the-- In fact, will supply the battery pack and drivetrains, the motor, and power electronics for the Model Y, but the Model Y vehicle plant will be a new plant. Essentially, a new Gigafactory that we're going to figure out the exact location of. There's just no room at Fremont. We are bursting at the seams. Honestly, if I ask people what's their number one complaint, it's parking. It's like, okay.
We practically had a riot the other day for parking, and I'm like, "Sorry, guys." Yeah, what happens is 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 mass amounts of equipment. Okay, parking lot was full, so therefore, it's like conservation of mass here or conservation of volume because you have 500 people who can't park. Anyways, it's crazy how much parking lot is a pain in the butt. We're bursting at the seams at Fremont, so there's just no way we could do Model Y at Fremont, so it's going to have to be somewhere else. I think Fremont is just 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. "How do I allocate my time across certain companies?" Yeah, I think it's very important to appreciate that tweet frequency does not. There's no correlation with what I actually do for a work basis. I might tweet a lot about The Boring Company, which is basically a hobby. I wouldn't even call that a real company at this point. It's got three people, some interns, and some part-time people. We're making pretty good progress for all that. That's just a fun thing to do where there's no pressure. Everyone thinks it's going to fail, so it's like, okay, it can only go up from there. Low expectations are great. The Boring Company is maybe 2% of my time.
Neuralink is 3%-5% of my time. OpenAI is maybe a couple of percent. 90% plus is divided between SpaceX and Tesla. Depending upon it's probably slightly more Tesla. Tesla's like a drama magnet. I have to deal with Tesla drama. On average, it's probably about half of my time is between SpaceX and Tesla. 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. It does do some good there. 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. In terms of how will we have experts install Solar Roofs around the U.S., 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. The SolarCity installation team has solved that, and we're going to be training the SolarCity installation team to do the Solar Roofs, the solar glass tiles. The prices will come down as we're able to achieve economies of scale and optimize the installation process.
I think it's very important that we be able to kit the entire roof before and then put that in a van and install on-site very quickly so that the amount of work that's required on-site is it should just be like Lego. It's kitted exactly, and you go and you do a crazy efficient roofing installation. Economies of scale and making that installation process efficient are key to having the prices come down. Okay. Most millennials living in apartments rather than homes, what can we do to make it easier to own and charge a Tesla without a garage? We're establishing Supercharging locations, a lot more in-city Supercharging locations. They'll be a little lower power, but in between a high-power Supercharger, which is optimized for long-distance trips, but more power than would typically be found in a home garage.
Wherever the car is being parked, at the apartment or at 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, because if you've got a lot of cars parked in a 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. It's important to have a system that load levels the power, so that they don't have to build a new substation just to supply the apartment building. That's one of the things that's in process of being implemented. No question we need to solve this problem for apartments, not just homes. From Jimmy Hoffa.
Is there an electric plane in Tesla's future? 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'd do an electric plane. 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 substantial innovation in the airframe and the way that you build an airplane in order to have decent range at 400 watt-hours per kilogram. At 500, it starts to become quite compelling, I don't know, I think we're maybe four or five years away from having 500 watt-hours per kilogram, something like that.
Maybe half a decade, yeah, in volume production. Of course. I'm not saying we're going to add a nuclear fusion reactor. I'm just saying it fits. All right. Thanks everyone for coming. It was great to see you. I look forward to seeing you next year. Thank you.