A new car was expected, but Elon Musk presented something else: what Tesla’s revolutionary “Master Plan” consists of

Elon Musk walks past a screen displaying an image of the Tesla Model 3 car during an opening ceremony for the Tesla Model Y Made-in-China program in Shanghai, China. January 7, 2020. REUTERS/Aly Song/File (Aly Song/)

The executive president of Tesla, Elon Musksurprised locals and strangers yesterday when, on the occasion of the investor dayinstead of presenting a new model of his vehicle, he announced his plan to eliminate fossil fuels from the economy.

Musk is expected to outline a plan to make a smallest and most affordable electric vehicle to broaden your brand’s appeal and stand up to the competition, and featured a slide showing two future models camouflaged on it.

But he centered the start of the presentation from Tesla’s headquarters in Austin (Texas) with an introduction of the “Master Plan 3” of the company for a “sustainable energy future”.

“Earth can pass into a sustainable energy economy and will do so in their lifetimes”, he said, laying out ways to make the transition, such as the renewable energy, electric vehicles, the switch to heat pumps and sustainable fuel for airplanes.

Tesla founder Elon Musk attends Offshore Northern Seas 2022 in Stavanger, Norway August 29, 2022. NTB/Carina Johansen via REUTERS/File
Tesla founder Elon Musk attends Offshore Northern Seas 2022 in Stavanger, Norway, on August 29, 2022. NTB/Carina Johansen via REUTERS/File (NTB/)

Apparently the markets expected the presentation of a new car, since Tesla shares on Wall Street fell sharply in post-closing operations.

Musk’s plan focuses on decarbonise the global power gridas well as the entire industry, maritime and air transport.

According to Tesla’s calculations, the change would cost 10 trillion dollarsof which 7 would correspond to electric vehicles.

“Today is not just for Tesla investors, but for anyone investing in Earth,” Musk said.

Company executives discussed vehicle models, stating that the van cyber truck will arrive this year and that Tesla intends to reduce by a 50% assembly costs of the next generation of automobiles.

(Screenshot: Tesla)
(Screenshot: Tesla)

Musk held up a chart of Tesla’s future electric fleet projection. The slide showed the electric vehicle maker’s existing models, including the Semi truck, as part of a projected market in 440 million vehicles.

It also showed the cyber truck and a future model covered as part of a market for 300 million vehicles. Another smaller model was presented as part of the mass market in its projection: 700 million vehicles.

Capturing the mass market is essential for Tesla’s goal of multiplying deliveries by 15 -up to 20 million vehicles- by 2030. To do this, Tesla will have to improve its battery technologywhich Musk has described as “fundamental limiting factor” for the transition to sustainable energy.

Musk could also describe plans to update the company’s best-selling vehicles, after Reuters will reveal his plan “Project Jupiter” to revamp your Model Y SUV.

Tesla has become by far the world’s most valuable automobile companyand its billionaire CEO aims to penetrate the mass market and turn the EV maker into a company capable of create a more climate friendly world.

(Photo: Twitter/samuel_garcias)
Tesla announced that it will install a factory in the Mexican state of Nuevo León. It would be the company’s first factory outside the United States, Germany and China, and Musk is expected to provide more details on Wednesday. In the photo, Musk with Samuel García (Photo: Twitter/samuel_garcias)

Tesla has promised to discuss expansion plans and capital spending, and a wide variety of projects are likely to be discussed, from batteries to self-driving technology to new factories.

On Tuesday, Mexican authorities announced that Tesla will install a ffactory in the northern state of Nuevo León. It would be the company’s first factory outside the United States, Germany and Chinaand Musk is expected to provide more details on Wednesday.

According to local authorities, said factory would have an investment that could exceed 5 billion dollars and would produce around one million vehicles per year for the national and international markets.

Plans for a more affordable car could attract the widest 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 viable in 2023, but Tesla has struggled to ramp up production of so-called 4680 batteries.

Some investors, including those who fear Musk is spending too much time on his latest big acquisition, Twitterthey also expect the CEO to attend to the share repurchase requestswhich are halfway to their November 2021 highs, even after a rally of more than 60% this year.

(With information from Reuters)

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