What happened
There were no major surprises from Tesla's (TSLA -1.11%) annual shareholder meeting last night, but investors liked what they heard nonetheless. Shares jumped nearly 5% during today's trading session and remained higher by 4.3% at 3 p.m. ET.
So what
While CEO Elon Musk was somewhat downbeat on the current economic backdrop, he told attendees that Tesla is well-positioned to navigate what he thinks will be 12 months of slowing economic activity and thrive over the long term. Specifically, Musk confirmed that the Cybertruck will begin shipments this year.
Musk also projected the company will be able to deliver between 250,000 and 500,000 Cybertrucks annually once production has ramped up. The company also believes its popular Model Y SUV will be the top selling passenger car globally this year.
Image source: Tesla.
Now what
Musk also responded to a shareholder question about running advertisements by reversing his long-standing position against advertising. He has always believed that Tesla customers are enough to promote the brand.
Tesla has a large fan base and used that loyalty to boost sales as production has grown to what could reach close to 2 million vehicles in 2023. But shareholders cheered the idea of starting to advertise in the media, and Musk said he listens to his shareholders.
Musk didn't have a plan to begin ads heading into the meeting. He made the decision on stage, based on the question and audience reaction, he told CNBC's David Faber in a post-meeting interview.
Musk said he was surprised by the amount of enthusiasm and now plans to create an advertising strategy. He said he's going to want it to be "informative, and entertaining, then it is, it can start to approach content."
Without providing details, Musk also teased that two new models could be launched that he thinks can sell in high volumes. Many assume that would include at least one mass market, low-cost vehicle.
Investors have long waited to hear more about a model that could engage a larger market of auto consumers. That may be getting closer, and investors showed their approval by buying Tesla shares today.
