At Tesla's first-ever annual investor day, CEO Elon Musk unveiled a new master plan with the ambitious goal of worldwide energy sustainability. Dubbed "master plan 3," the plan sets a clear path to a fully sustainable Earth with abundance, according to Musk. He emphasized that he's often surprised by how few people realize this path exists.
However, achieving this goal won't come cheap, as Tesla estimates it will require a $10 trillion investment, with 70% of that investment going towards a global shift to electric vehicles. Musk's bold pronouncements highlight Tesla's continued commitment to innovation and sustainability in the transportation and energy sectors.
To summarize, here are the key points of Tesla's Master Plan 3:
- Achieve worldwide energy sustainability with abundance.
- An investment of $10 trillion is required, with 70% of that being a global shift to electric vehicles.
- Continue to develop solar panel roofs and integrated battery storage.
- Expand production line across all key customer segments.
- Develop a self-driving capability that is 10 times safer than manual driving.
- Deliver 20 million cars annually by 2030.
Tesla's Master Plan 3 is an audacious plan to transform the way the world procures and uses energy. The plan consists of five key elements, including repowering the world's existing power grid with renewable energy, switching to electric vehicles, switching to heat pumps for home, business, and industry climate control, electrifying high-temperature heat delivery, and fueling ships and aeroplanes with sustainable energy. Despite the projected cost, Tesla officials believe the global transition will ultimately cost 40% less than continued reliance on fossil fuels.
Tesla's first-ever annual investor day didn't quite satisfy investors, as the company's stock fell 3.5% in after-hours trading by 5:22 pm EST. Tesla's live YouTube stream of the event started half an hour later than scheduled, which further teased impatient investors and Tesla fans. Earlier in the day, Reuters reported that Tesla will revamp production of its top-selling Model Y, involving changes to both the exterior and interior of the crossover vehicle. Additionally, the company displayed a pre-production beta Cybertruck, an electric pickup truck, at Investor Day. Despite the underwhelming investor reaction, Tesla's stock has surged 65% this year after plunging by the same percentage in 2022.
