On the CEO query, Musk mentioned he wished to supervise the automaker’s improvement of synthetic intelligence and synthetic basic intelligence that may allow Tesla automobiles to function as robotaxis. Humanoid robots that would promote within the billions are one other software for the software program, he mentioned.

Tesla calls its robotic beneath improvement Optimus. It confirmed video footage of the robotic transferring its limbs.

“I believe Tesla’s going to play an necessary position in AI and AGI and I believe I must oversee that to verify it is good,” Musk mentioned. Tesla’s lead in AI know-how just isn’t broadly appreciated, he added.

Tesla sells superior driver-assistance software program for $15,000 that it calls Full Self-Driving, regardless that it requires human supervision and is simply obtainable as an incomplete beta model. Musk mentioned he expects robotaxi software program to ultimately generate extra income for Tesla than automobile gross sales.

Future gross sales of the Optimus robotic, Musk mentioned, could possibly be 10 billion or 20 billion since each particular person on the planet would need a minimum of one.

“It is some actually large quantity, vastly in extra of automobiles,” he mentioned, including {that a} majority of the corporate’s long-term worth would come from Optimus.

Truck launch

On automotive merchandise, Musk mentioned the Cybertruck that can launch this yr after an extended delay has the potential to generate between 250,000 and 500,000 gross sales per yr.

“We’ll begin manufacturing later this yr and we’ll begin handing over automobiles later this yr,” he mentioned. “I would say 1 / 4 million a yr is an affordable guess and it could be 500,000, I do not know. We’ll make as many as individuals need and might afford. It is going to be exhausting to make the fee inexpensive.”

Tesla initially mentioned in 2019 the Cybertruck would begin round $40,000. Musk has since mentioned the value can be larger, however has not indicated by how a lot. The bottom Mannequin 3 sedan, now Tesla’s most cheap automobile, begins at $41,880 with transport.

The pickup truck gross sales chief, Ford, offered simply over 653,000 F-Collection vans in 2022, together with 15,617 F-150 Lightning electrical pickups that went on sale final yr, beating Tesla to the EV pickup market.

Musk additionally talked about two future automobiles to be constructed on a brand new platform Tesla is growing for extra inexpensive fashions. The automaker is concentrating on manufacturing prices about 50 p.c decrease than the platform used for the Mannequin 3 and Mannequin Y crossover, that are categorised as luxurious automobiles.

He mentioned he would save particulars on future automobiles for an additional time, however supplied a gross sales prediction.

Two new merchandise

“There are two new merchandise that I believe you may be very enthusiastic about, and each the design of the merchandise and the manufacturing strategies are head and shoulders above the rest that’s current within the business,” Musk mentioned. Mixed, the two merchandise may generate gross sales of 5 million per yr, he mentioned.

Tesla is constructing a brand new manufacturing facility in Mexico for the automobiles, which is also inbuilt different crops. Wall Road analysts counsel the beginning value for a minimum of one could possibly be $30,000 or decrease.

In response to a plea from a shareholder, Musk mentioned Tesla would strive some conventional promoting to stimulate gross sales. Beforehand, Musk was adamant about counting on word-of-mouth and nontraditional advertising and marketing efforts, equivalent to applications the place Tesla homeowners refer mates in trade for prizes.

“I share your bigger level that there are wonderful options and performance about Teslas that individuals do not learn about,” he instructed the shareholder. “I believe what you are saying does have some advantage and, you realize what, I imagine in taking solutions, so we’ll strive just a little promoting and see the way it goes.”

Musk’s feedback drew loud applause. He later mentioned on CNBC that he made the choice in actual time whereas on stage and was shocked by the depth of the applause. “I solely simply agreed to it, so it isn’t a totally fashioned technique,” Musk mentioned.

Some analysts have been saying for months that Tesla ought to promote to stimulate gross sales. Extra not too long ago, promoting proponents mentioned Tesla’s deep value cuts since January had bolstered their argument that the automaker wants extra instruments to drive deliveries on this local weather of financial uncertainty.

Musk defended Tesla’s a number of value cuts this yr and its new coverage of adjusting pricing up and down each few weeks to steadiness provide and demand.

He mentioned Tesla was being unfairly singled out for the frequent value changes. Legacy automakers do the identical factor, he mentioned, though it would not present up within the sticker value.

“What occurs with different automakers is that they’re truly continually adjusting pricing on automobiles, it is simply not that apparent,” Musk mentioned. “Final yr, there have been vital premiums above MSRP,” he mentioned, referring to vendor markups. “This yr, I believe issues are beneath MSRP or near it.”