Elon Musk Picture Via CBS News
In sheer exuberance, Elon Musk took the stage in Austin, Texas, performing a celebratory jumping jack with arms stretched wide. The Tesla CEO had just secured a monumental victory as shareholders voted to reinstate his $46 billion pay plan, which a Delaware judge had previously voided. Alongside this, they approved the company’s move to re-incorporate in Texas. This decisive support from shareholders marked a significant milestone for Musk and Tesla, underscoring their faith in the company’s ambitious future.
Musk began his address with palpable excitement, expressing heartfelt gratitude to the shareholders. “I just want to start off by saying hot damn, I love you guys,” he exclaimed, both in person and to those watching via live stream. The room erupted in applause as Musk’s energy resonated with the audience. His words set the tone for an optimistic and forward-looking meeting.
Following the preliminary vote results, shareholders were treated to a dynamic sizzle reel that highlighted Tesla’s significant strides in sustainability, new product developments, and an impressive innovation pipeline. The video featured voiceovers from some of Tesla’s harshest critics, such as investor Per Lekander, who once predicted Tesla’s downfall. However, the reel emphasized how Tesla had defied these criticisms, showcasing advancements like fully self-driving cars and the humanoid robot line, Optimus.
Musk’s presentation was a blend of confidence and ambition. He outlined his bold vision for Tesla, focusing heavily on the potential of fully autonomous vehicles. “We’re not just opening a new chapter for Tesla—we’re starting a new book,” he declared. Musk projected an astonishing future for Tesla, predicting a 110-fold increase in the company’s value based solely on vehicle autonomy. “I think just based on vehicle autonomy, we can 110x the value of the company,” he asserted.
Musk’s lofty projections found support among prominent investors. ARK Invest, led by longtime Tesla backer Cathie Wood, predicted Tesla could achieve an $8 trillion market cap, setting a $2,600 price target for 2029. Wood’s analysis hinged on the transformation of Tesla’s revenue model through self-driving cars, likening future profit margins to those of a software company. “This becomes a recurring revenue model, a slice of every mile driven on that autonomous taxi network,” Wood explained on CNBC.
A key element of Musk’s strategy involves transforming Tesla’s current fleet into autonomous vehicles. Once the self-driving software is perfected, Tesla plans to update all its existing cars, creating a network of self-driving taxis virtually overnight. “Really, the way to think of Tesla is almost entirely in terms of solving autonomy and being able to turn on that autonomy for a gigantic fleet,” Musk elaborated during an April earnings call. He suggested this shift could represent one of the greatest appreciations in asset value history.
In his characteristic style, Musk took a moment to critique some investors, particularly those based in New York, accusing them of failing to grasp the significance of Tesla’s plans due to their lack of personal car use. This dig highlighted Musk’s ongoing tension with certain segments of the financial community, who often scrutinize his bold promises and unconventional business strategies.
Musk outlined a vision for monetizing Tesla’s autonomous fleet by adopting a business model akin to Uber and Airbnb. Unlike Uber, Tesla would own its fleet, turning cars into temporary taxis when not in use by their owners. “If you’re going away for a week, just one tap on your Tesla app,” Musk said, envisioning a scenario where your car could earn money for you in your absence. This innovative approach excited the audience, illustrating the practical benefits of Tesla’s autonomous technology.
Despite his enthusiasm, Musk acknowledged his tendency toward optimism. “Now admittedly, I’m a little optimistic sometimes,” he conceded, displaying a rare moment of self-awareness. Musk’s track record includes several overpromises, such as his 2016 prediction that self-driving cars would be available by 2018 and his 2020 vision of a million robotaxis on the road. While these goals have yet to be fully realized, Musk remained steadfast in his belief in Tesla’s future potential.
Elon Musk’s $46 billion pay plan reinstatement is more than just a personal triumph; it is a reaffirmation of shareholder confidence in Tesla’s ambitious future. With projections of a 110-fold increase in value driven by autonomous technology and innovative business models, Tesla continues to push the boundaries of what is possible. While regulatory hurdles and past overpromises temper expectations, Musk’s unwavering optimism and bold vision promise an exciting future for Tesla and its shareholders. As the company forges ahead, it remains a beacon of innovation in the automotive and tech industries.
Also read: Tesla Charges Forward in a Stalling EV Race
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