Tesla’s Investor Day, held at the Gigafactory in Austin, Texas, turned into a captivating marathon of ambitious plans to save the world. Elon Musk, the multifaceted CEO of Tesla, Twitter, and SpaceX, took the stage to present his audacious “Master Plan 3.” According to Musk, a $10 trillion investment in manufacturing could lead to a global shift towards a renewable electricity grid, powering not only electric cars but also planes and ships.
Musk boldly proclaimed, “The Earth can and will transition to a sustainable energy economy, and will in your lifetime.” He hinted at more details to come in an upcoming white paper. However, the presentation left investors eager for specifics on Tesla’s highly anticipated next-generation vehicle—a more affordable, efficient, and skillfully built option compared to the current lineup. This vehicle, or group of vehicles, is crucial for Tesla’s goal of selling 20 million units by 2030, considering it had only sold 1.3 million in 2022.
Curiosity peaked among investors as they asked about this mysterious vehicle. To their disappointment, Musk declined to share details, revealing that a separate event will be held to unveil the enigmatic creation. The presentation slides merely displayed images of car-shaped forms concealed under gray sheets.
Instead, Tesla’s top 17 executives stepped up to share some tidbits about the next-generation vehicle during a round robin of presentations. They covered various aspects, including design, supply chains, manufacturing, environmental impact, and legal affairs. The key takeaway was that this vehicle would not be just another car; it would revolutionize vehicle production by focusing on affordability and desirability.
Lars Moravy, the vice president of vehicle engineering at Tesla, disclosed that the vehicle would be manufactured at a new facility near Monterrey, Mexico. This new plant, announced during the event, will become Tesla’s sixth battery and electric vehicle facility. The executives boasted that the next-generation vehicle would have a 40% smaller production footprint and slash production costs by 50%.
Despite the promising prospects, Wall Street seemed unsatisfied with the lack of specifics, causing Tesla’s stock price to drop by 5% on Thursday morning. Gene Munster, managing partner at Deepwater Asset Management, expressed his disappointment, stating, “The long-awaited Master Plan 3 theme has left me with more questions than answers.” Jessica Caldwell, executive director of insights at Edmunds, an auto industry research firm, echoed this sentiment, noting that Tesla had failed to present a concrete glimpse of an affordable Tesla.
The pursuit of an affordable electric car has been a long-standing goal for Tesla. The company’s first master plan in 2006 aimed to use funds from an electric sports car to develop increasingly affordable electric vehicles. The Model 3 was marketed as the affordable electric sedan for the masses, but its base price has since increased from $35,000 to $43,000. Meanwhile, traditional automakers inspired by Tesla’s vision have entered the market with more budget-friendly options like the Chevrolet Bolt and Nissan Leaf.
In 2016, Tesla released a second master plan, promising self-driving cars and shared robotaxis, along with a focus on the solar-panel business. While some of these plans have yet to materialize, Musk’s ambitious visions and bold statements continue to captivate both investors and the general public. Looking ahead, Musk envisions a future that extends beyond cars and robots, hoping that his endeavors will resonate with all investors who care about the well-being of our planet.