A：The general counsel and corporate secretary, Brandon Earhart, is responsible for the legal and corporate governance aspects of the company, including serving as the corporate secretary and overseeing the annual shareholder meeting.

A：Ongoing engagement with shareholders is important for Tesla as it plays a critical role in the company's ability to create value and continue expanding its mission of building a world of sustainable abundance.

A：Tesla's products avoided nearly 32 million metric tons of greenhouse gas emissions in 2024, a 70% increase year over year, and this impact will accelerate as Tesla displaces larger volumes of fossil fuel-based alternatives.

A：Tesla's approach to safety is to have vehicles consistently achieve the highest safety standards, as demonstrated by their global fleet's record of one crash after driving more than 6.8 million miles. Tesla is also enhancing Autopilot technology, expecting significant performance improvements from upcoming enhancements.

A：Highlights of Tesla's sustainability efforts include the meticulous evaluation of each step in the product journey, from raw material extraction to end-of-life, to ensure the reduction of resource impact. Tesla also focuses on ensuring the prosperity of their efforts can be shared with all employees, customers, and stakeholders.

A：Key achievements discussed in the meeting include the election of Class III directors, approval of say-on-pay on a non-binding advisory basis, ratification of the appointment of Pricewaterhousecoopers as the independent registered public accounting firm for fiscal year 2025, adoption of amendments to eliminate certain super majority voting requirements, and the 2025 CEO performance plan to Elon Musk.

A：The shareholder proposal regarding investment in XAI urges the board to authorize a strategic investment in XAI in a meaningful way to formalize Tesla's role as a leader in autonomous intelligence, ensuring the company does not outsource its brain to external providers.

A：The arguments in favor of linking executive compensation to sustainability metrics include the need for measurable goals to protect long-term shareholder value, reduce legal and reputational risks, and ensure that Tesla's leadership is rewarded not only for scale but also for sustainable impact.

A：The proposed audit is about conducting and reporting on a child labor audit to verify whether and to what extent child labor is implicated in Tesla's supply chain. It is significant because it seeks to ensure transparency and accountability, which are important for shareholders and the company's reputation.

A：Concerns regarding Tesla's cobalt mining practices and child labor include the continued listing of cobalt mining in the Democratic Republic of Congo as having the worst forms of child labor by the US Department of Labor. A 2023 white paper on financial and material impacts of child labor identifies Tesla as a case study in the ongoing risks posed by cobalt and other mineral sourcing to automation. Tesla's own 2024 impact report indicates increased investment in human and legal resources to combat forced and child labor, but lacks verifiable metrics showing the effectiveness of these investments. Shareholders are asking for third-party audits or transparent reports to back Tesla's claims of transparency and ethical sourcing.

A：The speaker urges Tesla's board to support Proposal 9 as a means to properly account for the costs and benefits of Tesla's mission. By supporting this proposal, the board would be demonstrating responsibility and ensuring that the true costs of the company's mission are transparently reported, regardless of the final vote on the proposal.

A：The fourth shareholder proposal is to amend the bylaws to repeal a derivative suit ownership threshold. The lead filer for this proposal is the Comptroller of the State of New York, with Thomas D.E. Napoli as the representative.

A：Proposed by New York State controller Thomas DiNapoli, Proposal 10 aims to amend the bylaws to repeal a 3% ownership threshold required for bringing a derivative suit against the company. The controller argues that this proposal restores fundamental investor rights, allowing shareholders to hold directors and officers legally accountable when they breach their fiduciary duties.

A：The new Texas bylaw reduces shareholder rights by allowing Tesla to block nearly every investor from bringing a derivative suit unless they hold 3% of the company's voting shares, worth about $30 billion. The board had previously assured investors that protections were similar in Delaware and Texas but later engaged in what is perceived as a 'bait and switch' by reducing shareholder rights. The board has recommended against this proposal, which seeks to restore accountability and enable shareholders to protect the company's long-term value if directors violate their duties.

A：Proposal 11 asks Tesla to adopt a simple majority standard for investor protection, ensuring that if the board chooses to impose more restrictive requirements for submitting shareholder proposals, those changes must be ratified by a supermajority of shareholders. This proposal is crucial for times like these when Tesla faces volatility, leadership transitions, and intense competition, as strong governance and active shareholder input can serve as competitive advantages.

A：The main arguments in favor of annual director elections include the need for greater accountability and oversight, as highlighted by recent Delaware court findings of governance failures at Tesla. Declassifying the board would allow shareholders to hold directors accountable each year or nominate qualified replacements when needed. This is supported by Nell Minow of Value Edge Advisors at ISS and is a key proposal for shifting the board towards independent professionals.

A：Proposal 13 is an advisory vote for a proposal that would change Tesla's voting requirements to a democratic majority vote standard, replacing the greater than simple majority vote. This proposal is important because it is a potential backup plan if the proposal for annual elections of directors (Proposal 6) does not receive enough votes. It is considered a step towards promoting a democratic governance structure.

A：The purpose of Proposal 14 is to ensure that Tesla holds a vote before adopting any bylaw amendments that would restrict the ability to file a shareholder proposal. This proposal aims to preserve the shareholder proposal process as an efficient early warning system that helps companies stay ahead of potential risks and maintain corporate democracy.

A：The key outcomes of the recent shareholder votes on Tesla proposals include the adoption of amendments to eliminate certain supermajority requirements in the organizational documents, approval of the Say on Pay advisory vote, ratification of the appointment of Price Waterhouse Coopers as Tesla's independent registered public accounting firm for the 2025 fiscal year, re-election of Class III directors, approval of the Amended and Restated 2019 Equity Incentive Plan, and approval of the 2025 CEO Performance Award with over 75% voting in favor.

A：Optimus is a robot that Tesla aims to launch into mass production, envisioned as a large-scale product that will transform industries and provide services like personal robots for individuals, which could lead to significant advancements in medical care, elimination of poverty, and overall abundance. It's considered by Tesla to be potentially the biggest product of all time, with the potential to revolutionize how services are provided and how societies function.

A：Ensuring safety is paramount for Optimus, with the goal to prevent accidents and ensure the product does not lead to negative outcomes similar to the caution in Star Wars movies. Tesla plans to launch Optimus on the fastest production ramp of any product, starting with a 1-million-unit production line in Fremont and potentially scaling up to a 100-million-unit or even a billion-unit annual production capacity.

A：Tesla's mission statement is being updated to reflect the incorporation of AI and robotics. The new mission is to achieve sustainable abundance, which envisions a future where people can have all their needs met while preserving the environment and natural beauty, unlike the previous focus on accelerating the advent of sustainable energy.

A：Tesla's approach to educating customers about their vehicles' autonomous capabilities involves demonstrating the features in person, allowing customers to experience them before purchasing or activating features like Full Self-Driving (FSD). Tesla aims to clear misconceptions about the vehicles being capable of autonomous driving, and sales and service teams offer detailed explanations and demonstrations to prospective and current customers.

A：Tesla faces challenges in obtaining regulatory approval for FSD in various regions, such as Europe, where the feature is not currently allowed. There have been discussions with regulators that are compared to Kafkaesque situations, despite having data showing the safety benefits of FSD. Tesla is seeking support from customers to push regulators towards approval and has achieved partial approval in China with the expectation of full approval around February or March.

A：The Cyber Cab is a robot specifically built for full self-driving capabilities and is designed to operate without pedals or a steering wheel, optimized for lowest cost per mile in autonomous mode. The factory where it is produced is geared towards high volume and resembles a high volume consumer electronics device. Tesla expects to achieve a cycle time of under 10 seconds for the Cyber Cab, potentially reaching a 5-second cycle time, which could enable production of up to 2 or 3 million units annually.

A：Every Tesla car comprises fundamental elements such as batteries, power electronics, motors, gearboxes, connectivity, and a vision-based AI, referred to as Autopilot Optimus (High Optimus).

A：According to the speaker, the three significant challenges in robotics are engineering the forearm and hand due to the human hand's incredible dexterity, real-world AI, and volume manufacturing.

A：The Optimus prototype production line is a specialized line used to build prototype robots. It is highly automated and will be very crucial in developing and testing the robots before moving to high volume production.

A：With each release cycle, Optimus is expected to have significant improvements, including advancements in scale and production efficiency. Optimus 3 is an incredibly good design, showcasing the advancements made by Tesla's engineering team.

A：Optimus is expected to increase the size of the economy by a factor of 10 or more according to the speaker.

A：Miles driven on Tesla's Full Self-Driving are much safer than miles driven without it, which is expected to translate into saving the lives of millions and preventing hundreds of millions of accidents.

A：The key features of the new Tesla chip design include its capability as an AI chip tailored for Tesla's software, power efficiency, and being made in various locations including TSMC, Taiwan, Korea, and the US. The chip is optimized for Tesla's AI software stack and is designed to be highly efficient in integer operations which are more power and silicon efficient than floating point operations.

A：Tesla's chip design is specialized, focusing on its particular requirements, which makes it easier to optimize the chip for Tesla's software. In contrast, Nvidia must accommodate a wide range of customer requirements which makes their approach more generalized.

A：Tesla is focusing on upcoming products like the Tesla Semi, Optimus, and the Cybertruck. The Tesla Semi will start volume production at the Northern Nevada factory in 2026, and the Cybertruck is described as the toughest truck of all time with capabilities exceeding a Porsche 911 and being able to out-tow a Ford F-350.

A：Tesla believes that battery technology has the potential to double the energy output of the United States, as it allows for the effective buffering of energy and can enable the use of existing power plants more efficiently.

A：Tesla has made significant investments in safety measures and has developed the world's largest Supercharger network. The company values the wellbeing of factory workers and has implemented safety measures that contribute to a good working environment.

A：The speaker wishes for a larger venue to accommodate more people and believes that Tesla will be much bigger than Berkshire in the long term. They also indicate that they will organize another event at a bigger location like the downtown arena or soccer stadium.

A：Tesla plans to extend the ability to upgrade their Full Self-Driving (FSD) feature tied to the owner's account rather than the vehicle, making it available for a few more months. They also hinted at a wheelchair accessible model and the development of Optimus, which could include a new vehicle. Tesla's expansion aims to include a 50% increase in vehicle production by the end of the next year, targeting an annualized rate of 2.6 to 2.7 million vehicles. They also foresee a massive increase in vehicle production and the ramping up of Optimus production faster than ever before.

A：Tesla faces challenges in scaling up battery cell production and is looking for cell production from suppliers. The company aims to increase vehicle production by about 50% by the end of the next year, with a target of around 2.6 to 2.7 million vehicles annually, aspiring to reach 4 million by the end of 2027, and 5 million by the end of 2028. The nature of producing a large complex product limits production to the least flexible element in the entire system.

A：The dry cathode method has proven to be more difficult than anticipated, although it is expected to offer a cost advantage over the wet cathode method. Tesla had initially considered going with the wet cathode method due to the difficulty in achieving high volume production with high reliability. Tesla plans to scale up battery cell production and is seeking cell production from suppliers as part of their production ramp-up.

A：Tesla is focused on ensuring the Autopilot system is very safe before allowing it to operate without human attention. The system is on the cusp of enabling vehicles to take drivers to their destination while they can sleep or text, and Tesla is aiming for unsupervised autonomy with a level of reliability significantly better than human operation.

A：Tesla vehicles and Optimus robots are anticipated to play significant roles in building and operating a moon base and a Mars city. Tesla plans to use its vehicles and Optimus robots for transportation and construction on the lunar surface and Martian settlements.

A：Tesla's CyberCab is expected to increase total miles driven as it makes travel less painful due to the comfort of the rides. At the same time, it is expected to decrease the total active fleet of vehicles as more people may opt for ride-sharing services.

A：The concern is whether regulatory approval will be ready for the deployment of CyberCabs being produced in Q2 next year. However, the speaker is confident that the production rate of CyberCabs will roughly match the rate of regulatory approval and that all produced CyberCabs will be deployable.

A：The speaker expresses gratitude to Tesla shareholders and considers the success of Optimus to be a possibility in the future, though not immediate. The speaker recognizes the challenges of market manipulators and short sellers but aims to find a way for Tesla shareholders to participate in SpaceX.

A：The speaker believes that it is possible to download human consciousness to a robot body using neural link technology in less than 20 years. However, a person in a robot body would not be exactly the same, and would be different from their former self.

A：The speaker believes that space solar power becomes viable with the advent of Starship, as it will enable a significant reduction in the cost per ton to orbit, making space solar power a more feasible option. Starship's capability to transport payloads at a lower cost than air cargo will also make it more practical to use space solar power for applications like powering AI satellites.

A：The speaker acknowledges that AI is rapidly advancing and that it might be too much for a car to manage. They suggest that when the car is idle, it could be used as a distributed AI inference fleet, earning money for the car's owner and enhancing the AI's capabilities.

A：The production and delivery timeline for the new Roadster is about 12 to 18 months after the product unveil, which is scheduled for April 1 of the following year. The new Roadster will be very different from the previous model and promises to be the most exciting demonstration of any product, pending its success.

A：The speaker acknowledges that in a post-scarcity world, the role of money could potentially diminish or become obsolete. They foresee AI taking on significant influence, potentially leading the world as opposed to humans, and emphasize the need for AI to be friendly. The speaker also anticipates that powerful people may need to relinquish some power to achieve this vision.

A：Tesla is trying to expand its insurance offerings as quickly as possible but acknowledges the complexity of insurance regulation, which varies by state. The speaker admits that insurance is often too expensive and doesn't consider certain risks. Tesla may resort to self-insurance when the car is operating as a cybercab. However, the issue of insurance in the context of vehicle autonomy is a significant challenge.

A：Training compute for Optimus is expected to cost tens of billions of dollars. The speaker suggests that partnerships with XAI and SpaceX could potentially help accelerate this process, as the training compute is necessary for developing an efficient AI that can run on low power chips in robots.

A：The speaker acknowledges the need for the Tesla app to be available in all languages, including Hebrew, to accommodate users who do not speak English.