Elon Musk said the next phase of Tesla’s growth will be built around a global renewable energy future, one that can serve a much larger global population and be achieved without major economic sacrifices.
The start of the automaker’s Master Plan 3 presentation on Wednesday may have disappointed some investors who were expecting information on new products, including details about the future Gen 3 platform. Tesla shares fell as much as 3.6% to $195.55 in extended trading.
Musk, 51, outlined his vision for a global EV transition fueled by spending $10 trillion on global renewable energy development. He also confirmed that Tesla will build a factory in Monterrey, Mexico, the country’s president announced on Tuesday. The company’s investor event was broadcast live from its Austin, Texas facility.
“The Earth will move towards a renewable energy economy,” Tesla’s CEO said Wednesday. “And it will happen in your lifetime.”
One product that Tesla could expand into is heat pumps. Musk and Drew Baglino, the automaker’s senior vice president of propulsion and power engineering, said heat pumps could dramatically reduce heating costs for homes and offices, which they describe as one of the low-hanging fruits of the renewable energy transition.
What attendees and online audiences didn’t hear was when Tesla will unveil its next-generation vehicle, with management saying it would come at a “later date.” Tesla has again said the Cybertuck is coming this year.
The company’s new vision aims to build on the growth of the US electric vehicle leader from a niche player to a mainstream automaker. Tesla’s two previous strategic plans were unveiled in 2006 and 2016.
Dozens of investors flocked to Austin for the invitation-only event, where Tesla planned to showcase its “most advanced production line.” Management will discuss issues such as long-term growth, next-generation vehicle architecture and investment plans, the company said.
Investors are excited to learn more details about Tesla’s product strategy, including its third-generation vehicle platform. Musk said in January that the company remains on track to begin construction of its much-anticipated Cybertruck in Austin later this year, but warned that production volumes will be limited until 2024.
Musk released his first master plan more than a decade ago, outlining Tesla’s go-to-market strategy to build an electric sports car and then a line of more affordable cars. The company realized that vision with the roadster, the Model S, and then the Model 3 sedan — its most affordable vehicle, which starts at about $43,000.
Ten years later, Musk released Master Plan, Part Deux, while Tesla acquired SolarCity. Musk was president of the solar panel installer run by his cousins. That plan talked about solar roofs with battery storage, a wider range of vehicles and self-driving technology.
Source: LA Times