Musk claims Tesla won’t survive a harsh economy. Tesla Inc. (TSLA.O) CEO Elon Musk cautioned that the global economy will be tough for the next year. However, at Tesla’s annual shareholder meeting in Austin, Texas, Musk downplayed market speculations that he may resign as CEO, discussed two new mass-market models, and confirmed that deliveries of its long-delayed Cybertruck pickup would begin this year.
Musk said Tesla would advertise its automobiles for the first time, a sign of tough times even for the electric car market leader. “We’ll try out a little advertising and see how it goes,” said Musk, Twitter’s CEO.
The global economy affects Tesla. “I expect things to be, just at a macro economic level, difficult for at least the next 12 months,” the billionaire stated, wearing a black T-shirt and pants.
Tesla missed its first-quarter margin target after aggressively cutting vehicle pricing amid a sluggish economy and increased competition.
JB Straubel, the company’s co-founder and former CTO, was elected to the board by shareholders. Concerned about Straubel’s independence, Glass Lewis advised investors to vote against his appointment.
Gene Munster, managing partner at Deepwater Asset Management, believes Redwood Materials CEO Straubel may succeed Musk.
After Musk bought Twitter for $44 billion in October, investors complained that the board failed to keep Musk focused on Tesla.
“There was a short-term distraction because I had to do major open-heart surgery on Twitter to ensure the company’s survival,” Musk said Tuesday. He stated last week that Linda Yaccarino, NBCUniversal’s former advertising boss, will succeed him as Twitter CEO and that he will focus on products and technology.
He stated Twitter is in a “stable place” and “the amount of time that Twitter will take going forward is relatively small compared to the last six months.”
“Say it ain’t so,” a stakeholder said regarding reports he will resign as Tesla CEO. Musk said, “It ain’t so.”
According to Tesla director James Murdoch, Musk named a successor in court in November.
Investors rejected a study on “Key-Person Risk.” The proposal identified key people and planned succession.
At the meeting, Musk stated Tesla would like to create a quarter-million Cybertrucks a year, depending on demand. He added the EV maker wants to start manufacturing its long-delayed next-generation Roadster electric sports car next year.
He briefly highlighted two new mass-market models under development, saying he hopes to make more than 5 million of those vehicles, but did not elaborate.
Musk also promised a third-party examination of battery-making cobalt mines to ensure no child labor.
“In fact, we will put a webcam on the mine and if anybody sees any children, please let us know,” he added, adding that most Tesla battery packs were iron-based and used cobalt only a “tiny amount” as a binder.
Tesla shareholders approved most board proposals on Tuesday. Musk and Denholm were both re-elected.
ISS advised against Denholm, expressing worries about Musk and Kimbal’s use of Tesla shares as security for loans.
Tesla shares closed Tuesday at $166.52 and climbed 0.6% after hours. The stock has fallen 60% since November 2021.
