Tesla Inc TSLA CEO Elon Musk said people’s desire to own one of his company’s electric cars is great, but stressed that the biggest challenge remains in logistics and the supply chain.

What happened: “Demand is very much a function of affordability, not desire,” Musk said at Tesla Investor Day on Wednesday.

There was no unveiling of the company’s highly anticipated products at the event “Model 2” Economy EV.

“The hard part is building the cars,” Musk said of Tesla’s next-generation vehicles, adding that building the supply chain around them is a challenge of “extraordinary difficulty.”

Musk declined to say when the next-gen vehicle would be unveiled, adding that he would “skip” the gun if he answered the question.

Regarding training vehicles, Musk said Tesla expects to expand capabilities in the coming years through a combination of Nvidia and Dojo.

growth in China: On the impact of US-China tensions on long-term ambitions, Tesla China Chief Tom Zhu said: “We are expanding our market share in China quite strongly.”

Zhu said demand has increased, especially after the recent pricing adjustments this year.

On the subject of geopolitical tensions, Zhu said, “No one knows. We do our best, achieve a lot [local] jobs and contribute to the economy. As long as we are needed in this country [China]I don’t see a big risk.”

AI effect: Musk also spoke about generative artificial intelligence and current trends. He said he doesn’t see AI helping to build cars any time soon. However, he expressed concern about the technology and called for a regulator to oversee it. “It’s quite a dangerous technology.” He said, “I’m afraid I did something to speed it up.”

“Tesla does good things in AI,” Musk said, but added that the thought of the technology “stresses him out.”

price action: Tesla shares fell 5.7% to $191.30 in after-hours trading Benzinga Pro data.

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