Tesla Inc. CEO Elon Musk stated he has no rapid plans to depart the highest submit since he needs to supervise the event of synthetic intelligence software program that may allow profitable future merchandise, akin to autonomous autos and humanoid robots.

On the automaker’s annual shareholders assembly Tuesday, an investor requested Musk about latest rumors that he could step down as CEO. The investor added: “Please say it ain’t so.”

Musk replied: “It ain’t so” to loud applause from Tesla shareholders throughout a question-and-answer session that capped the occasion. The Wall Avenue Journal reported final week that Tesla board members had mentioned firm CFO Zach Kirkhorn as a attainable successor to Musk.

Musk touched on quite a lot of subjects on the shareholders assembly and in an interview afterwards on CNBC.

Musk stated he expects the Cybertruck pickup launching later this yr to promote between 250,000 and 500,000 items per yr. He additionally hinted at two future mass-market autos. And he stated Tesla would reverse its opposition to conventional promoting in response to requests from the investor group.

On the CEO query, Musk stated he wished to supervise the automaker’s improvement of synthetic intelligence and synthetic basic intelligence that will allow Tesla autos to function as robotaxis. One other utility for the software program are humanoid robots that would promote within the billions, he stated.

Tesla calls its robotic underneath improvement Optimus and confirmed video footage of it transferring its limbs.

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

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

Future gross sales of the Optimus robotic, Musk stated, could possibly be 10 billion or 20 billion items since each particular person on the planet would need at the least one.

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

Truck launch

Pertaining to automotive merchandise, Musk stated that the Cybertruck pickup that may launch later 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 vehicles later this yr,” Musk stated of the pickup. “I might say 1 / 4 million a yr is an inexpensive guess and it may be 500,000, I do not know. We’ll make as many as folks need and may afford. It should be laborious to make the fee reasonably priced.”

Tesla initially stated in 2019 that the Cybertruck would begin round $40,000. Musk has since stated the worth can be increased, however not by how a lot. Tesla’s most cheap automobile at the moment, the bottom Mannequin 3 sedan, begins at $41,880 with transport.

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

Musk additionally talked about two future autos that can be constructed on a brand new platform the automaker is growing for extra reasonably priced fashions. Tesla is concentrating on manufacturing prices about 50 % decrease than the platform used for the Mannequin 3 and Mannequin Y crossover, that are categorised as luxurious vehicles.

The Tesla CEO stated he would save the small print on the longer term autos for one more time, however provided a gross sales prediction.

Two new merchandise

“There are two new merchandise that I believe you can 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 trade,” Musk stated. He stated the 2 might generate gross sales of 5 million items per yr, mixed.

Tesla is constructing a brand new manufacturing facility in Mexico for the autos, which is also inbuilt different crops. Wall Avenue analysts have instructed the beginning worth for at the least one could possibly be $30,000 or decrease.

In response to a plea from a shareholder, Musk stated Tesla would strive some conventional promoting to stimulate gross sales. Beforehand, Musk had been adamant about counting on phrase of mouth and non-traditional advertising efforts like packages the place Tesla homeowners might refer mates in trade for prizes.

“I share your bigger level that there are superb options and performance about Teslas that individuals do not learn about,” Musk informed the shareholder. “I believe what you are saying does have some advantage and, you understand what, I consider in taking recommendations so we’ll strive slightly promoting and see the way it goes.”

Musk’s feedback drew loud applause. He later stated 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 is not a completely shaped technique,” Musk stated.

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

Musk defended the a number of worth cuts this yr and the automaker’s new coverage of adjusting pricing up and down each few weeks to stability provide and demand.

Musk stated Tesla was being unfairly singled out for the frequent changes. Legacy automakers do the identical factor, he stated, though it would not present up within the producers instructed retail worth, or MSRP.

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

Fast worth adjustments

He additionally defended the trade’s apply of adjusting costs to match market situations.

“It is a necessity as a result of demand fluctuates rather a lot, so one thing’s bought to be executed to realize a supply-demand clearing level,” he stated. “Each automotive firm does this on a regular basis. Tesla is not any completely different.”

Latest knowledge exhibits the worth cuts have been profitable, though in addition they decreased Tesla’s revenue margins within the first quarter.

In response to Experian, Tesla’s U.S. registrations rose 37 % in contrast with the identical interval final yr to 155,360 autos. Over the identical time interval, Tesla elevated its annual manufacturing capability by about 260,000 vehicles per yr by including a second U.S. manufacturing facility in Texas, based on Tesla numbers.

Additionally on the shareholder assembly, held on the new manufacturing facility in Austin, shareholders voted to nominate the corporate’s co-founder and former chief know-how officer, JB Straubel, to the board of administrators.

Shareholders additionally voted to re-elect Musk and Chair Robyn Denholm as board members.

Buyers voted towards publishing a report on “Key-Individual Danger.” The proposal sought to establish key individuals and set up succession plans.

Musk stated Tuesday he’ll have extra time to give attention to Tesla now that he’s stepping down as CEO from social media firm Twitter, which he bought final yr.