Elon Musk has said the next phase of Tesla’s growth will be built around a sustainable energy future. This is something that can be achieved by serving a larger global population and without major economic sacrifices.
The three-hour presentation of the automaker’s Master Plan 3 on Wednesday disappointed some investors who were hoping for new product information, including details of future third-generation platforms. It dropped a whopping 6.8% to $189.
Musk, 51, has outlined his vision for a global switch to electric vehicles, driven by $10 trillion in spending to develop sustainable energy worldwide. The company’s investor event was broadcast live from Tesla’s factory in Austin, Texas.
“The planet will transition to a sustainable energy economy. And it will happen in your lifetime,” Tesla’s CEO said.
EV makers plan to reduce their future manufacturing plant footprint by 40% as they drive their own efficiencies. Chief Financial Officer Zach Kirkhorn has promised to cut production costs of Tesla’s next-generation car in half.
One of the products Tesla can expand on is heat pumps. Musk and his senior vice of powertrain and energy engineering Drew Baglino, his president, said heat pumps can dramatically reduce the cost of heating homes and offices, making the transition to sustainable energy easier. One of the achievements he said.
Tesla has gone to great lengths to introduce a few executives who are largely unknown to investors. For example, Rebecca Tinucci, head of global charging infrastructure, took the stage to talk about the company’s Supercharger network and “magic docks” that allow other drivers of her EVs to charge at Tesla stations. I was.
Musk’s acquisition of Twitter in October led some investors to suspect he was spreading himself too far. Bringing so many other executives into the spotlight shows that Tesla has a wealth of talent.
The company also touted its increasing ability to get production equipment up and running quickly. Tesla said it aims to finish groundbreaking its lithium refinery in Corpus Christi, Texas, and begin producing battery-grade lithium chems within 12 months.
“That’s the goal,” said Baglino.
What attendees and online audiences weren’t hearing was when Tesla would unveil its next-generation vehicle, which management says will be “at a later date.” Tesla has reiterated that the Cybertuck is coming this year, with mass production planned for 2024.
The new corporate vision sees the US electric vehicle market leader grow from a niche player to a mainstream automaker. His two previous strategic plans for Tesla were announced in 2006 and 2016.
Many investors flocked to Austin for an invitation-only event where Tesla was to showcase its “state-of-the-art production line.” Management planned to discuss topics such as long-term growth, next-generation vehicle architecture and capital spending plans, the company said.
Musk unveiled its first master plan more than a decade ago with a go-to-market strategy to build an electric sports car for Tesla, followed by a series of more affordable cars. The company has executed that vision with the Roadster, Model S and Model 3 sedans.
Ten years later, when Tesla acquired SolarCity, Musk released Master Plan, Part Deux. Mr. Musk served as chairman of a solar panel installation company led by his cousins. The plan talked about solar-his roofs with battery storage, expanding the vehicle line-up and self-driving technology.