Tesla Shareholder Meeting: Ten To Twenty Gigafactories Worldwide

Jun. 07, 2017 1:53 PM ETTesla, Inc. (TSLA)315 Comments
Yarrow Bouchard profile picture
Yarrow Bouchard
1.87K Followers

Summary

  • Tesla's annual shareholder meeting contained several important revelations. The most significant: Tesla plans to build 10 to 20 Gigafactories worldwide.
  • The big picture: Tesla's ambition is to become a giant global vertically integrated energy company, capitalizing on both the automotive and energy markets.
  • More details about the Model Y and the Tesla Semi were revealed. Both are expected to begin production in 2019.
  • Autopilot for Hardware 2 cars will exceed the functionality of Autopilot for Hardware 1 cars as early as next week. Development will continue "very rapidly" from that point on.
  • Tesla is taking steps to address some of its worst problems, including most notably factory safety.

Introduction

Tesla (NASDAQ:TSLA) held its annual shareholder meeting on Tuesday. The biggest revelation from the meeting, in my view, is that Tesla plans to build 10 to 20 Gigafactories worldwide, which would amount to an annual production capacity of approximately 10 to 20 million cars. All of the key takeaways are divided into three parts below:

  • Part 1: Energy, Factories, and Self-Driving
  • Part 2: Model 3, Model Y, and Tesla Semi
  • Part 3: Stores, service, Superchargers, factory safety, the non-existent Tesla airplane, and the Board

Part 1: Energy, Factories, and Self-Driving

Tesla: a vertically integrated energy company

  • Tesla is becoming a vertically integrated sustainable energy company: Solar Roof, Powerwall and Powerpack, Model S, X, and 3.
  • CEO Elon Musk: this integrated solution can “scale for the whole world” and can last as long as human civilization lasts.
  • Solar Roof: the stained glass windows in some cathedrals has lasted for over 500 years. Tesla expects the Solar Roof to last longer than the houses they are installed on.
  • Traditional solar panels remain an important part of Tesla’s solar business since they are better suited a) to flat roofs, where aesthetics don’t matter and b) for people who don’t want to replace a recently installed roof. The focus is on designing installation kits “like Lego”, in order to make installations efficient.
  • Powerwall (home scale): energy storage is needed for grid stability as solar electricity generation scales. It also makes the energy system more resilient. Homes can remain powered in the event of natural disasters that take down the grid. This increases safety and security.
  • Powerpack (industrial scale): the entire island of American Samoa (population 55,000) is powered by Powerpacks. Since “a continent is a big island”, this solution can scale to power the entire planet.
  • Installing a Solar Roof, a Powerwall, and a

This article was written by

Yarrow Bouchard profile picture
1.87K Followers
I write about autonomous vehicles and other AI robots on Seeking Alpha and in my Substack newsletter. I've been long TSLA (which is 95%+ of my portfolio) since February 2017.

Disclosure: I am/we are long TSLA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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