Elon Musk said the subsequent phase of Tesla Inc.’s growth can be built around a sustainable energy future, one which can serve a bigger world population and be achieved without great economic sacrifice.
The automaker’s Master Plan 3 three-hour presentation Wednesday upset some investors who were expecting new-product information, including details of the longer term Gen 3 platform. Tesla shares fell as much as 6.8% to $189 in prolonged trading.
Musk, 51, outlined his vision for a world switch to electric vehicles, driven by $10 trillion in spending to develop sustainable energy worldwide. The corporate’s investor event was streamed live from Tesla’s factory in Austin, Texas.
“Earth will move to a sustainable energy economy,” Tesla’s chief executive officer said. “And it’ll occur in your lifetime.”
In its own drive for efficiency, the EV maker plans to cut back the footprint of future manufacturing plants by 40%. Chief Financial Officer Zach Kirkhorn vowed to chop production costs in half for Tesla’s next-generation vehicles.
One product Tesla could expand to is heat pumps. Musk and Drew Baglino, his senior vice chairman of powertrain and energy engineering, said heat pumps could dramatically cut home and office-heating costs, calling them considered one of the low hanging fruit of the transition to sustainable energy.
Tesla went to great lengths to introduce several executives who’re largely unknown to investors. For instance, Rebecca Tinucci, the top of worldwide charging infrastructure, took to the stage to speak concerning the company’s Supercharger network and the “Magic Dock” that lets drivers of other EVs charge at Tesla stations.
Musk bought Twitter in October, leading some investors to wonder if he’s spread himself too thin. Letting so many other executives share the limelight shows Tesla has a deep bench of talent.
The corporate also touted its growing ability to get production facilities up and running quickly. Tesla said it has broken ground on a lithium refinery in Corpus Christi, Texas, and goals to start out output of battery-grade lithium chemicals inside 12 months.
“That’s the goal,” Baglino said.
What attendees and online audience didn’t hear was when Tesla will unveil its next-generation vehicle, with management saying that might come at a “later date.” Tesla did say again that the Cybertuck is coming this yr, with volume production expected in 2024.
The brand new corporate vision goals to construct upon the U.S. electric vehicle market leader’s growth from a distinct segment player right into a mainstream automotive manufacturer. Tesla’s two previous strategic plans were unveiled in 2006 and 2016.
Scores of investors flocked to Austin for the invitation-only event, where Tesla planned to showcase its “most advanced production line.” Management was scheduled to debate topics including long-term growth, next-generation vehicle architecture and capital spending plans, the corporate said.
Musk published his first Master Plan greater than a decade ago, laying out Tesla’s go-to-market strategy of constructing an electrical sports automotive, then a series of more cost-effective cars. The corporate has executed on that vision with the Roadster, the Model S after which the Model 3 sedan — its least expensive vehicle which starts at around $43,000.
Ten years later, Musk released Master Plan, Part Deux, as Tesla was acquiring SolarCity. Musk served as chairman of the solar-panel installer, which was led by his cousins. That plan talked about solar roofs with battery storage, an expanded vehicle lineup and self-driving technology.