Tesla (D.S.L.A) CEO Elon Musk announced his “Master Plan 3” during the EV company’s Investor Day event on Wednesday. Musk’s ambitious plan calls for a wholesale shift to EVs and spending $10 trillion to create a “sustainable energy future.” TSLA stock fell late Wednesday as the event generated some headlines.
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The event, which took place at Tesla’s Austin factory in Texas, began with a keynote from Musk. The CEO outlined his plan for the future of energy and throughout the event, Tesla executives touted cost-cutting plans. Tesla has confirmed that it will build a Mexico manufacturing plant in Monterrey.
The EV company also announced a “Tesla Electric” program for customers in Texas this summer. Tesla will offer a retail electric plan for people who own Tesla vehicles, where customers can get unlimited overnight home charging for $30 a month.
The global EV giant reiterated that its long-awaited Cybertruck will arrive in 2023. However, Tesla did not reveal the next-generation vehicle, saying it would arrive at a “later date.”
CFO Zachary Kirkhorn said Wednesday that Tesla’s next-generation vehicle is “looking forward,” with the company’s goal of cutting costs by 50%. According to Kirkorn, this should lead to a much cheaper vehicle. The CFO added that Tesla is working on “robo taxi” variants of the next-generation platform.
“It’s a product that we expect to have a significantly lower cost per mile than the best-selling product in the world,” Kirkhorn said.
Tesla has announced that its next-generation vehicle will be manufactured at a plant in Mexico.
Analysts predict Tesla will unveil a low-cost EV platform ahead of Investor Day. Tesla has repeatedly teased an EV at a $25,000 price point. Kirkhorn said during the Q4 earnings call that the “next-generation vehicle platform” is a priority.
Tesla Investor Day and Master Plan #3
Elon Musk laid out a broad plan for a “sustainable future” on Wednesday.
His “Master Plan 3” calls for $10 trillion in capital spending to mine and refine raw materials and develop storage and vehicle batteries. Musk’s global plan calls for 240,000 gigawatt hours of widespread energy storage and sustainable energy production on 0.2% of Earth’s land area.
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“As we improve the energy density of the batteries, you’ll see all transportation go fully electric, except for rockets,” Musk said Wednesday.
His plan is to make the power grid entirely renewable, with a wholesale switch to EVs and heat pumps in all homes and businesses. Musk believes industrial high-temperature operations should be electrified, as well as shipping cargo and aircraft.
Musk said his vision was achievable and that what he was conveying was a “message of hope and optimism.”
Tesla’s first master plan, released in August 2006, laid out the company’s goal of building a wide range of EVs. Ten years later, Musk revealed his second “master plan.” It focuses on self-driving capability and battery energy storage systems.
Stock performance
Shares of TSLA fell 5% in after-market trading on Wednesday. During regular trading on Wednesday, Tesla shares fell 1.4% to 202.77. Tesla shares fell 0.9% to 205.71 on Tuesday, after rising 5.5% on Monday. Stocks can discuss a cup-with-handle pattern (or a very low handle in the base that starts in September) in early November. That would suggest a buy point of 217.75.
However, Tesla stock could face potential resistance at its 200-day moving average, currently above 221.
Tesla stock has more than doubled from its peer-market low of 101.81 on Jan. 6. Much of that reflected Tesla’s investor day buzz. It runs ahead of events that resemble TSLA stock’s historical pattern. In 2016, Tesla stock took a 22% one-month run ahead of Musk’s second “master plan” announcement on July 20, 2016.
TSLA stock ranks fourth on IBD Automobile Manufacturers Industry Group. Tesla stock has a composite rating of 73 out of 99. The stock also has a pro strength rating of 27. The EPS estimate is 99.
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