Elon Musk is set to host the first Tesla Investor Day Wednesday at the Texas Gigafactory to reveal ‘Master Plan 3’ that he says will quiet doubters of his business.
Rumors suggest investors and super fans will learn about company expansion, production of the Cybertruck and an affordable generation 3 platform, an EV costing up to $30,000.
Musk revealed the idea of his Master Plan 3 last March, noting it would be dealing with topics like ‘scaling [production] to extreme size, which is needed to shift humanity away from fossil fuels, and AI.’
The event will kick off at 4pm ET and broadcast via live stream.
Elon Musk is hosting Tesla’s first Investor Day that will share details about the workings of the company
Tesla has become the world’s most valuable car company.
Musk has aspirations of cracking the mass market and turning the EV maker into a company that can create a more climate-friendly world.
Tesla has recently outperformed the industry, increasing deliveries rapidly despite the pandemic and supply-chain disruptions.
But the company cut prices in recent months to boost sales, which were pressured by a weak economy and growing threats from rivals in the US and China.
The automaker has only four models, all priced toward the higher end of the market.
Tesla has promised to discuss expansion and capital expenditure plans, with various projects from batteries to self-driving technology to new factories – which could be outlined later today.
News broke Tuesday that Tesla will break ground in Mexico for a new assembly plant worth more than $5 billion.
One Mexican official said the plant would be a Tesla ‘Gigafactory’ that could produce the Semi truck, Roadster sports car, and potentially other vehicles.
Another official said the plant could produce a kind of sport utility vehicle (SUV).
While the event will be streamed online, it is also being held in person at the company’s Texas Gigafactory (pictured)
Musk revealed the idea of his Master Plan 3 last March, noting it would be dealing with topics like ‘scaling [production] to extreme size, which is needed to shift humanity away from fossil fuels, and AI’
Tesla has car factories in the US states of California and Texas, as well as in Berlin and Shanghai.
News about the plant in Mexico follows Tesla obtaining its own lane at the Mexico border crossing in 2022.
The exclusive border patrol lane sits between Texas and Nuevo León, Mexico to reduce travel time for its suppliers.
With the carmaker’s exclusive border access, the trip for its suppliers is reduced to just 10 minutes – it can be more than 25 minutes during rush hour.
Tesla has six suppliers in Nuevo León, including APG Mexico and Taiwanese-based companies EnFlex Corp. and Quanta Computer.
Musk is expected to touch on supply chain strategies, from mining materials to how batteries are manufactured and vehicles.
Tesla may also confirm a long-rumored ‘Project Highland’ Model 3 upgrade.
Reuters reported Wednesday that an upgraded Model 3, emphasizing lower production costs, will go into production in September at the Shanghai facility.
The Model Y is also expected to see updated changes, both inside and out, which could start production in 2024.
‘The thing to look for this year is the Gen 3 platform, which is key to growth as it will allow lower-cost EVs which should boost volume as demand stalls and competition ramps up,’ Third Bridge analyst Orwa Mohamad wrote late Tuesday.
Attendees of the event are likely to tour the Texas facility, where the world could see the long-awaited Cybertruck on the assembly line.
The futuristic-look vehicle has been hit with several delays, leaving millions of reservations unfilled.
Musk’s recent timeline for the release, but this has yet to be seen.
Check-in for the event was at 2pm and some attendees shared videos and images of the Cybertruck Beta prototype on Twitter.
Capturing the mass market is critical to Tesla’s goal of increasing deliveries 15-fold – to 20 million vehicles by 2030.
Attendees of the event are likely to tour the Texas facility, where the world could see the long-awaited Cybertruck on the assembly line
Check-in for the event was at 2pm and some attendees shared videos and images of the Cybertruck Beta prototype on Twitter
To do that, Tesla will have to improve its battery technology, which Musk has called the ‘fundamental limiting factor’ for the transition to sustainable energy, making it a likely topic for Wednesday’s address.
The plans for a more affordable car could draw the broadest interest.
In 2020, Musk unveiled a plan to develop batteries in-house, which he said would make self-driving electric cars priced at $25,000 feasible by 2023, but Tesla has been struggling to scale up the production of the so-called 4680 batteries.
Some investors are concerned that Musk is spending too much time on his latest major acquisition, Twitter.
They also hope the CEO will address calls to buy back shares at about half of their November 2021 peaks, even after a more than 60 percent rebound this year.
After an ugly 2022, Tesla shares have rallied in early 2023, rising around 67 percent this year, a surge that has reestablished Musk as the world’s wealthiest person.
‘Investors are focused on what can change the narrative to continue the stock’s recent rally,’ Morgan Stanley analyst Adam Jonas said in a note.
Musk previously unveiled the first phase of his ‘Master Plan’ in 2006, which was focused on producing a luxury sports vehicle before more affordable autos.
The second phase included ambitious targets for solar panels, autonomous driving and producing a fleet of Teslas across major vehicle categories.
Musk has been credited with catalyzing a revolution in the global auto industry towards EVs, although he has still not met the significant target he has set for Tesla.