Tesla Inc.’s next phase of growth will revolve around a sustainable energy future that can serve more of the world’s population and can be achieved without huge economic sacrifices, Elon Musk said.
The automaker’s three-hour Master Plan 3 presentation on Wednesday disappointed some investors who were expecting new product information, including details on future Gen 3 platforms. Tesla shares fell as much as 6.8 percent to $189 in after-hours trading.
Musk, 51, outlined his vision for a global shift to electric vehicles driven by spending $10 trillion globally on sustainable energy. The company’s investor event was broadcast live from Tesla’s factory in Austin, Texas.
“The planet will shift to a sustainable energy economy,” said Tesla’s CEO. “And it will happen in your lifetime.”
To improve efficiency, the electric car maker plans to reduce the footprint of future manufacturing plants by 40%. Chief Financial Officer Zach Kirkhorn has vowed to cut production costs in half for Tesla’s next-generation vehicles.
One product Tesla could expand on is heat pumps. Musk and his senior vice president of powertrain and energy engineering, Drew Baglino, said heat pumps could dramatically reduce heating costs for homes and offices, calling them a low-hanging fruit for the transition to sustainable energy. One of the results.
Tesla went out of its way to introduce several executives largely unknown to investors. For example, Rebecca Tinucci, global head of charging infrastructure, took the stage to describe the company’s Supercharger network and “magic docks” that allow drivers of other electric vehicles to charge at Tesla stations.
Musk bought Twitter in October, leading some investors to wonder if he was spreading himself too thin. Having so many other executives share the limelight shows Tesla has a deep talent pool.
The company also touts its ability to get its growing production facility up and running quickly. Tesla said it has broken ground on a lithium refinery in Corpus Christi, Texas, with the goal of starting production of battery-grade lithium chemicals within 12 months.
“That’s the goal,” Baglino said.
What the attendees and online audience didn’t hear was when Tesla would unveil its next-generation vehicle, which management said would be “at a later date.” Tesla did say again that the Cybertuck will arrive this year, with volume production expected in 2024.
The new corporate vision seeks to build on the U.S. electric vehicle market leader and grow from a niche player to a mainstream automaker. Tesla’s previous two strategic plans were announced in 2006 and 2016, respectively.
Many investors flocked to Austin for the invitation-only event, where Tesla plans to showcase its “state-of-the-art production line.” Topics management plans to discuss include long-term growth, next-generation vehicle architecture and capital spending plans, the company said.
More than a decade ago, Musk released his first master plan, laying out Tesla’s go-to-market strategy of building an electric sports car and then a line of more affordable cars. The company has realized that vision with the Roadster, Model S and Model 3 sedans — its cheapest cars start at about $43,000.
Ten years later, with Tesla’s acquisition of SolarCity, Musk released the Master Plan, Part Deux. Musk serves as chairman of the solar panel installation company, which is led by his cousin. The plan talks about a solar roof with battery storage, an expanded vehicle lineup and self-driving technology.