On March 2, 2023, Tesla held its four-hour-long Investor Day where it has announced Tesla Master plan 3, where it shared updates on its progress towards becoming the driver of the global shift to renewable energy. The event featured a lineup of department leads who discussed operational efficiencies and cost reductions. Tesla’s big goal is to produce 20 million electric vehicles (EVs) annually by 2030, a target it has been working towards for a while. Tesla’s existing portfolio includes the Model S, Model X, Model Y, and Model 3, as well as the Tesla Semi and Cybertruck, and two other veiled vehicles.
However, there was no big product announcement, and Tesla did not provide specific details on its upcoming factory in Mexico or the next-generation EV. Despite the lack of a major announcement, Tesla’s executives shared some news and insights on several topics. This blog post will highlight some of the key takeaways from Tesla’s Investor Day.
Tesla Master Plan 3
Elon Musk, the CEO of Tesla, is set to unveil “Master Plan 3” which is expected to include major announcements regarding the future of the company. Among the expected announcements are plans for a new car plant in Monterrey, Mexico, the release of the Cybertruck, new advanced batteries, and possibly a more affordable Tesla car. These announcements come as Tesla faces increasing competition from established carmakers and Chinese manufacturers.
The possibility of a more affordable Tesla car has been widely discussed, with reports suggesting that Musk may revive plans for a $25,000 car. However, there are doubts about whether this car would actually be sold at such an affordable price, as the price of the Model 3 steadily increased after it was launched in 2017.
Analysts and investors are concerned that Tesla has been too slow to introduce new vehicles and is lagging behind competitors such as Hyundai, Volkswagen, and Ford, who have introduced a wider range of cheaper electric models. General Motors is also set to release three new electric vehicles this year, including an electric version of the Chevrolet Equinox crossover which will be priced around $30,000.
Overall, the “Master Plan 3” announcement is highly anticipated and will be closely watched by investors, analysts, and consumers as they look for clues about Tesla’s future plans and the direction of the electric vehicle market.
Tesla Investor Day https://t.co/kcJWQcAFkJ
— Tesla (@Tesla) March 1, 2023
The goal to produce 20 million EVs annually by 2030.
Tesla has been working towards this goal for some time, and the company believes that it can achieve this target. The company aims to reach this goal through vertical integration, scaling existing factories and building new ones, making the manufacturing process more efficient, and adding a few more models. Tesla believes that this is not a demand problem but rather a challenge of building the EVs.
Vertical integration and cost reductions
Tesla has always been committed to vertical integration, and the company’s executives discussed different pieces of the vertical integration goal during the event. Tesla has brought several operations in-house, including building its own chips. The company continues to push the boundaries of vertical integration, right down to the software it uses for in-house operations. Tesla recently got rid of an outsourced software for recruiting and developed its own purpose-built microprocessor for high-power electronics that will reduce costs by half.
For Tesla, vertical integration equals cost reductions, and that’s one of the big aims to achieve the bigger mission.
Lithium plant in Corpus Christi
Tesla has even extended its vertical integration efforts to the materials it uses in battery cells. Tesla officially broke ground on a new lithium refinery in Corpus Christi, Texas, during the event. The refinery is expected to have a 50-gigawatt-hour per year production capacity and will be operational by the end of 2023. The company is also planning to build a cathode processing facility adjacent to the lithium refinery.
Mexico factory
Tesla’s next gigafactory will be in Mexico near Monterey, according to an announcement by Mexico President Andrés Manuel López Obrador. Although Musk reiterated the announcement, he did not share any new details aside from a rendering. Musk emphasized that the company would continue to expand production at all of its existing factories, including California, Nevada, Texas, and Shanghai.
Next-gen vehicles
Tesla did not provide any specific details on the next-generation EV during the event. However, the company’s executives teased two veiled vehicles, suggesting that Tesla is working on more than just the Model S, Model X, Model Y, and Model 3, Cybertruck, and Tesla Semi.
In conclusion, Tesla’s Investor Day provided insights into the company’s progress towards its goal of producing 20 million EVs annually by 2030. The event also highlighted Tesla’s focus on vertical integration and cost reductions, with a new lithium refinery in Corpus Christi being a prime example. Tesla’s announcement that its next gigafactory will be in Mexico was a significant development, and the teaser of two veiled vehicles hints that the company has more in store beyond its existing portfolio.